Financial Modeling in Excel For Dummies, 2nd Edition

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

Over the past few decades, Microsoft has brought out a new version of Excel every couple of years, but the latest subscription model, Excel for Microsoft 365, ...