Data Analytics & Visualizations — Get Educated on Microsoft Excel!
Many CPAs Don’t Understand the 21st Century Excel!
Introduction
I recently read an article posted in the CPA Journal titled “Using Visualization Software to Compile and Analyze Data — A Step-by-Step Guide for CPAs”, authored by Kevin Pan, PhD and Alan Blankley, PhD, CPA.
The article focused on the use of Tableau visualization software, describing how “big data” is increasingly being managed by CPAs and that “software programs that have served CPAs well for years, such as Microsoft Excel, find themselves straining under the weight.”
I love Tableau and it is a fantastic visualization software package — along with Qlik and PowerBI, which the authors mention.
However, throughout the article, the authors point out where Excel has deficiencies compared with Tableau — which are simply not accurate in the current Microsoft Excel software (since the 2010 version…).
Excel Deficiencies?
Below, I highlight a few of the authors observations about Excel — which are simply not accurate. I assume the authors observations were due to a lack of knowledge about Excel’s data analytics upgrades in the last 8 years, but at the same time, it is misleading to make these statements in guidance to the CPA professionals that are readers.
From the article:
“Furthermore, visualization programs can process big data much more efficiently than Microsoft Excel.”
“The above-mentioned interface allows these tasks to be done in seconds, as opposed to the hours they would take using traditional software such as Excel.”
“The authors chose this data set to demonstrate Tableau’s ability to handle big data and the types of data relevant to accountants. It is worth noting that Excel could only load 1,048,576 of 1,584,587 records, leaving 536,011 records unloaded.”
(Note — Data is easily handled using the Data Model capability of Excel)
“ When analyzing data, it is frequently necessary or desirable to join two or more data sets. This is difficult to efficiently or easily do when using spreadsheets, but in Tableau it is relatively easy.”
(Note — Data joins are simple using the Merge queries capabilities in Power Query or defining relationships via Power Pivot.)
“When using a spreadsheet to analyze data, users will often develop pivot tables to summarize and report information derived from the more detailed underlying data. While useful, Excel’s pivot tables are limited in several ways that Tableau is not.”
(Note — False; Excel’s Power Pivot tool overcomes all of the limitations highlighted by the authors.)
Conclusion
As the authors highlight in their article, there are many excellent data analytics software tools available today.
However, “plain old Excel” should not be overlooked! Simply understanding the capabilities of Excel using the free add-ins (already built in for Excel 2016 and Office 365).
CPAs have full data analytics capabilities on their computers TODAY! Nothing extra is needed. Build your analytics skills in this environment and the transition to more robust tools will be a snap — the same data concepts apply, just using different terminology.
Don’t be held back any longer — start building your knowledge!
In future posts, I will highlight how robust Excel is, with Power Query and Power Pivot add-ins, managing the data referenced in the article.
I will replicate the authors steps, add a few of my own, and create the visualizations provided in the article.
Stay tuned…
About Don
“It’s time for DIFFERENT”
Don is passionate about helping professionals and organizations keep up, develop and adapt to the changing business world that we operate in.
