How FP&A managers can get more from Excel

We often hear as professionals that it’s not about the tools we use but about understanding the problem. However, the tools we use fundamentally shape how we see and address those problems. They can act as shortcuts, helping us solve issues more efficiently, but if misused, they can also complicate matters further.

Take Excel, for instance. It’s a staple in most companies and a daily driver for many finance teams. While numerous new tools for FP&A have emerged, nothing beats Excel’s versatility and accessibility. However, Excel can sometimes feel like a double-edged sword. On one hand, it’s incredibly powerful and widely used; on the other hand, it can lead to a spiral of errors and consume valuable time on rote minutiae, distracting your team from focusing on the numbers and the business.

This guide aims to help FP&A managers unlock the full potential of Excel, ensuring that their teams are not only proficient but also efficient in their use of this essential tool. We’ll explore advanced Excel features that can streamline workflows, discuss the importance of skill development, and highlight the benefits of bringing in expert help. By the end of this post, you’ll have a clear roadmap for elevating your team’s Excel game and driving better business results.

Understanding an FP&A team’s needs

Your team requires a tool that is reliable, shareable, and capable of detailed financial modeling. They need to grasp the numbers thoroughly and convey those insights clearly to upper management. Excel addresses these needs by being:

• Nimble. It quickly adapts to various tasks.
• Flexible. It can handle different types of data and calculations.
• User-friendly. It is familiar and accessible for most users.

However, it’s important to acknowledge Excel’s downsides. It can be fragile, slow, and prone to errors. These pain points can easily be overlooked, but addressing them can lead to significant improvements in efficiency and accuracy. Understanding these challenges is the first step toward optimizing your team’s use of Excel and ensuring it remains a powerful asset rather than a liability.

Addressing Excel’s Pain Points

To make the most of Excel, your team should adopt best practices and advanced features to enhance efficiency and accuracy. Here are some key strategies:

1. Store data in tables: Encourage your team to store data in tables, which makes managing, analyzing, and visualizing data easier. Tables offer features like automatic formatting, sorting, and filtering, making data handling more efficient.
2. Connect to outside sources with Power Query: Power Query allows your team to connect to various external data sources and create reproducible data cleaning workflows. This tool can automate many data transformation tasks, saving time and reducing errors.
3. Master basic PivotTables and move to Power Pivot/DAX: While basic PivotTables are essential, your team should advance to using Power Pivot and DAX for more dynamic analyses. These tools enable easier trend analysis and segmentation, allowing for more robust and insightful financial models.
4. Utilize XLOOKUP() and dynamic array functions: Familiarize your team with functions like XLOOKUP() and other dynamic array functions. These are fast and flexible, making financial modeling more efficient and reducing the likelihood of errors.

By integrating these tools and practices, your team’s Excel results will be faster and more reliable. This means fewer frozen workbooks and late nights at the office. Everything will run more smoothly, and your team will feel confident sharing and answering questions about the business. No more anxiety every time someone opens a workbook – just efficient, accurate, and insightful financial analysis.

Leveraging Expert Help

As you adopt these practices and features, consider bringing in a consultant who is well-versed in these advanced Excel tools. A good consultant can:

• Evaluate: Assess your current Excel usage and identify areas for improvement.
• Train: Provide hands-on training for your team on tools like Power Query and Tables.
• Collaborate: Work alongside your Excel power users to develop better solutions without pulling them away from their daily tasks.

Remember, investing in a consultant is often more cost-effective than implementing a completely new software system, which would require consultancy anyway. A good consultant can help you get the most out of Excel without the need for expensive new software.

The Value of a Fresh Perspective

A consultant can bring a fresh perspective to your Excel processes. They can identify inefficiencies and suggest improvements that you might not have considered. For example, they might notice that you’re manually updating data that could be automated with Power Query or that you’re using complex formulas that could be simplified with tables.

Working with a consultant can also provide your team with valuable training. They can learn new techniques and best practices that they can apply to their work. This can help them become more efficient and effective in their roles.

Embracing AI in Excel

Now, onto the hot topic on everyone’s mind these days: AI. Get comfortable with AI tools like Copilot. While AI isn’t yet the ultimate solution for most day-to-day FP&A or Excel tasks, it will become increasingly important. Familiarizing yourself with these tools now will prepare your team for the future.

For example, Copilot can help automate routine tasks and provide insights you might not have noticed. It can analyze your data more quickly and accurately, freeing up your time for more strategic work. As AI continues to evolve, it will become an even more valuable tool for FP&A professionals.

A Step-by-Step Plan for FP&A Managers

Here’s a step-by-step plan to help you get started with making the most of Excel:

1. Assess your current use of Excel: Identify the pain points and inefficiencies in your current processes. Talk to your team and get their input.
2. Invest in training: Provide your team with the resources they need to improve their Excel skills. Encourage them to take online courses, attend workshops, and read books on Excel.
3. Leverage advanced features: Start using tables and Power Query to streamline your data management and analysis processes. Experiment with these features and see how they can help you work more efficiently.
4. Bring in a consultant: Hire an Excel consultant to evaluate your current processes, provide training, and help you implement improvements. Look for someone who has experience with FP&A and can tailor their advice to your needs.
5. Embrace AI: Start using AI tools like Copilot to automate routine tasks and gain insights from your data. Keep an eye on developments in AI and look for new tools and techniques that can help you work more effectively.
6. Monitor and adjust: Regularly review your processes and look for ways to improve. Get feedback from your team and make adjustments as needed. Stay up-to-date with the latest developments in Excel and FP&A and be willing to adapt your processes as new tools and techniques become available.

Conclusion

Excel is a powerful tool for driving business results, but it’s crucial to use it effectively. By investing in training, leveraging advanced features, and seeking expert help, you can maximize Excel’s potential and improve your FP&A processes.

If you’re ready to enhance your team’s Excel skills, email me or schedule a call to discuss tailored solutions or explore the corporate training options I offer. With my FP&A background and extensive Excel expertise, I can provide the guidance your team needs.

For specific learning resources, feel free to ask in the comments or reach out personally. Start with my book, Modern Data Analytics in Excel, and my LinkedIn Learning courses on AI for Excel.

As an Excel MVP, helping teams get the most from Excel is what I do best.