How to Decide When to Use a Spreadsheet

By eHow Computers Editor

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Although you can use a spreadsheet to set up tables of just textual information, its real usefulness lies in its ability to calculate formulas - and recalculate them automatically when values change. Spreadsheets are great for budgets, financial statements and other tasks that require calculations.

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Instructions

Difficulty: Easy

Things You’ll Need:

Microsoft Excel

Step1

Understand that the ability to reference spreadsheet "cells" of data and use the cell references in formulas is a spreadsheet's big advantage. Instead of calculating a value yourself, you can put a formula such as "B2+C3" in a cell. Then, if the value in cell B2 or C3 changes, the value in the cell with the formula also changes. Many spreadsheet programs include predefined formulas for myriad financial calculations.

Step2

Use spreadsheets to list and maintain groups of numerically based data. You can enter and edit data on several worksheets within a single document and perform calculations based on data from multiple worksheets. For example, you could have separate worksheets for each department's budget in a company, plus a worksheet for the whole company budget. You can pull in values from each worksheet to create the overall budget sheet almost automatically. Plus, if department values change, they will be updated instantly in the company budget.

Step3

Recognize that you can automatically create charts out of spreadsheet data, which you can then print or easily import into presentation applications.

Step4

Realize that a spreadsheet can also be handy for simple data entry, because you can press the Tab key to easily advance from cell to cell, and the data are simply laid out in rows and columns. Plus, most spreadsheets will "remember" textual cell contents and automatically fill in a cell once you type the first few letters. However, for extensive or complicated data entry, a database is usually a better choice.