EXCEL FORMULAS FOR ACCOUNTING AND FINANCE

Excel spreadsheet is a common

tool used by every accountant
or
financial analyst to analyze,
report and share financial
information.
Some basic excel functions
let you perform complex
calculations
and produce useful models
making your work more
effective and
easier. Excel can become more
versatile tool if you increase
your
knowledge on more other
financial analysis functions.
Excel spreadsheet is a common
tool used by every accountant
or
financial analyst to analyze,
report and share financial
information.
Some basic excel functions
let you perform complex
calculations
and produce useful models
making your work more
effective and
easier. Excel can become more
versatile tool if you increase
your
knowledge on more other
financial analysis functions.
Excel spreadsheet is a common
tool used by every accountant
or
financial analyst to analyze,
report and share financial
information.
Some basic excel functions
let you perform complex
calculations
and produce useful models
making your work more
effective and
easier. Excel can become more
versatile tool if you increase
your
knowledge on more other
financial analysis functions.
Excel spreadsheet is a common tool used by every accountant or financial analyst to
analyze, report and share financial information. Some basic excel functions let you perform
complex calculations and produce useful models making your work more effective and easier.
Excel can become more versatile tool if you increase your knowledge on more other financial
analyst functions.

1. XNPB
- This function used to determine the company’s worthy using the Net Present Value
of a series of discounting cash flows. Unlike the excel, NPV, the XNPV function uses
specific dates for cash flows.

Syntax
 = XNPV (rate, values, dates)

Excel spreadsheet is a common

tool used by every accountant
or
financial analyst to analyze,
report and share financial
information.
Some basic excel functions
let you perform complex
calculations
and produce useful models
making your work more
effective and
easier. Excel can become more
versatile tool if you increase
your
knowledge on more other
financial analysis functions.

2. XIRR
- Determines the Internal Rate of Return for a series of cash flows with specific dates.
The XIRR should always be used over IRR if the time periods are different.
-
Syntax

= XIRR (values, dates, [estimated irr])

- The estimated irr parameter is optional. It is your guess at the internal rate of return.
If the parameter is omitted, it assumes a constant value of 10%.
 - Excel NPV and IRR assumes time periods in the cash flow are equal but there are
times where the cash flows are not timed evenly therefore XNPV and XIRR are used
to solved the problem.

3. MIRR
- This function is very important in analyzing the internal rate of return. It is modified
formula used when cash from one investment is used in a different investment. If
the cash for new land is invested in buying new motor vehicle.

Syntax

= MIRR (values, finance_rate, reinvest_rate)

- Assuming a company produces an internal rate of return, IRR with a finance rate of
6% and the cash is reinvested in a motor vehicle at a rate of 5%, then MIRR will be
higher than the IRR rate.