Your company’s bookkeeping doesn’t just keep track of your expenses and profit from month to month.
It helps you track the growth or decline of your company each year. Now if you were to try do your company’s accounting the old fashioned way with pen and paper, creating a way of tracking this growth is difficult.
But with Excel, you can turn your monthly sales data into an annual trend analysis chart in just a few clicks…
Excel makes it easy to turn your sales data into a trend analysis chart
When you use Excel to create your accounting records, it’s easy to manipulate the data to create analysis charts. This is useful as it gives you a way to compare your company’s profit or loss for different years.
This gives you an idea of where you need to make changes to the way you run your business or if you simply need to keep doing what you’re doing.
And it only takes three steps to turn your raw accounting data into an annual trend analysis chart…
Turn your accounting data into an annual trend analysis chart in just four steps
Step #1: Right click on any of the data and select ‘Group’ from the list.
Step #2: Excel will have already selected ‘Months’. You must left click on ‘Years’ to select it as well.
Step #3: Click ‘OK’. You have now grouped your data by month and year.
Step #4: Click on ‘Pivot Chart’ to display the ‘Pivot Table Field List’.
From there it’s a simple matter of arranging the data you want to appear in your chart and then clicking ‘Update’.
This will now create a line graph that shows you how your sales data has changed according to each month and each year.
Use this tool to quickly and easily examine and analyse your company’s financial situation.
Author: Ashley Churchyard, FSP Business