Financial Modeling in Excel For Dummies

Chapter 2

Getting Acquainted with Excel

IN THIS CHAPTER

Comparing different versions of Excel

Introducing Modern Excel

Recognizing the pitfalls of using Excel

Exploring alternatives to Excel

For most people, Microsoft Excel and financial modeling go hand in hand. Given the title of this book, it should come as no surprise to you that I assume you’ll be using Excel. In order to build a financial model, you need at least a working knowledge of Excel. So, before jumping into the details of financial modeling, I’m going to introduce you to the tool you’ll be using, Microsoft Excel.

Almost every financial model you’ll come across will make use of Excel to some extent, but alternatives to Excel do exist, as do add-ins to improve Excel, both of which I cover in this chapter. Finally, I look at some of the issues and risks related to the use of Excel, just so you know what to expect.

Making Sense of the Different Versions of Excel

Every few years, Microsoft brings out a new version of Excel. For users who are comfortable with the way their version of Excel works, these changes are often ...