Software & Apps MS Office 160 160 people found this article helpful What is Microsoft Excel and What Does It Do? This versatile program helps you make sense of your data by Ted French Writer Former Lifewire writer Ted French is a Microsoft Certified Professional who teaches and writes about spreadsheets and spreadsheet programs. our editorial process Ted French Updated on November 11, 2019 reviewed by Ryan Perian Lifewire Tech Review Board Member Ryan Perian is a certified IT specialist who holds numerous IT certifications and has 12+ years' experience working in the IT industry support and management positions. our review board Article reviewed on Jun 11, 2020 Ryan Perian MS Office Excel Word Powerpoint Outlook Tweet Share Email Excel is an electronic spreadsheet program that is used for storing, organizing, and manipulating data. The information we've prepared refers to Microsoft Excel in general and is not limited to any specific version of the program. What Excel Is Used For Electronic spreadsheet programs were originally based on paper spreadsheets used for accounting. As such, the basic layout of computerized spreadsheets is the same as the paper ones. Related data is stored in tables — which are a collection of small rectangular boxes or cells organized into rows and columns. All versions of Excel and other spreadsheet programs can store several spreadsheet pages in a single computer file. The saved computer file is often referred to as a workbook and each page in the workbook is a separate worksheet. Spreadsheet Cells and Cell References When you look at the Excel screen — or any other spreadsheet screen — you see a rectangular table or grid of rows and columns. In newer versions of Excel, each worksheet contains roughly a million rows and more than 16,000 columns, which necessitates an addressing scheme in order to keep track of where data is located. The horizontal rows are identified by numbers (1, 2, 3) and the vertical columns by letters of the alphabet (A, B, C). For columns beyond 26, columns are identified by two or more letters such as AA, AB, AC or AAA, AAB, etc. The intersection point between a column and a row is the small rectangular box known as a cell. The cell is the basic unit for storing data in the worksheet, and because each worksheet contains millions of these cells, each one is identified by its cell reference. A cell reference is a combination of the column letter and the row number such as A3, B6, and AA345. In these cell references, the column letter is always listed first. Data Types, Formulas, and Functions The types of data that a cell can hold include: NumbersTextDates and timesBoolean valuesFormulas Formulas are used for calculations — usually incorporating data contained in other cells. These cells, however, may be located on different worksheets or in different workbooks. Creating a formula starts by entering the equal sign in the cell where you want the answer displayed. Formulas can also include cell references to the location of data and one or more spreadsheet functions. Functions in Excel and other electronic spreadsheets are built-in formulas that are designed to simplify carrying out a wide range of calculations – from common operations such as entering the date or time to more complex ones such as finding specific information located in large tables of data. Excel and Financial Data Spreadsheets are often used to store financial data. Formulas and functions that are used on this type of data include: Performing basic mathematical operations such as summing columns or rows of numbersFinding values such as profit or lossCalculating repayment plans for loans or mortgagesFinding the average, maximum, minimum and other statistical values in a specified range of dataCarrying out What-If analysis on data, where variables are modified one at a time to see how the change affects other data, such as expenses and profits Excel's Other Uses Other common operations that Excel can be used for include: Graphing or charting data to assist users in identifying data trendsFormatting data to make important data easy to find and understandPrinting data and charts for use in reportsSorting and filtering data to find specific informationLinking worksheet data and charts for use in other programs such as Microsoft PowerPoint and WordImporting data from database programs for analysis Spreadsheets were the original "killer apps" for personal computers because of their ability to compile and make sense of information. Early spreadsheet programs such as VisiCalc and Lotus 1-2-3 were largely responsible for the growth in popularity of computers like the Apple II and the IBM PC as a business tool. Excel Alternatives Other current spreadsheet programs that are available for use include: Google Sheets: A free, web-based spreadsheet programExcel Online: A free, scaled-down, web-based version of ExcelOpen Office Calc: A free, downloadable spreadsheet program.