Workbooks, worksheets and cells

A spreadsheet (or worksheet) is a grid of rows and columns for recording, calculating and comparing numbers, especially financial data. Electronic spreadsheet, spreadsheet, Excel: in this chapter they all mean the same thing. The book uses MS-Excel 2007, whose commands sit on the Ribbon of tabs, with the Office Button at the top left.

Accountants use spreadsheets everywhere: to prepare financial statements (Balance Sheet, Profit and Loss, cash flow), for budgets and forecasts, to analyse data, for payroll, inventory, tax and bank reconciliation. They are flexible, they cut human error, and they cost far less than specialised accounting software.

Know the pieces, from biggest to smallest:

• A file is a workbook. It holds worksheets (three by default). Only one is the active worksheet; its name is shown in bold on the sheet tab. You can add and rename sheets.
• Rows are numbered (1, 2, 3...) and columns lettered (A, B, C...). Where a row meets a column is a cell, with an address such as G8.
• The cell you have selected is the active cell. A block of cells is a range, written with a colon: A1:E2.

How a formula refers to a cell matters when you copy it:

• Relative (the default, like C4): the address changes as the formula is copied.
• Absolute (with dollar signs, like $C$4): the address stays fixed.
• Mixed ($C4 or C$4): only the part with the dollar sign is fixed.

Moving around: the arrow keys; Enter moves down; Tab moves right; Home goes to the start of the row; Ctrl+Home goes to cell A1; Ctrl+End goes to the last used cell. Excel recognises what you type as numeric, alpha-numeric (text) or a date.