Role of Technology in Finance

Role of technology in managing finance

Spreadsheets (Microsoft Excel) are widely used to record and edit numerical information.  Spreadsheets could be used to:

• record cost information and calculate break-even point
• prepare cash budgets
• calculate profit
• create graphs
   
  Formulae can be inserted to perform calculations!  Information can be edited quickly and saved to be used at another time.
   
  Advantages of using spreadsheets are:
   

• less chance of errors as formulae can carry out automatic calculations
   
• Businesses can easily see the effect changes will have, e.g. changing figures in cash budgets will allow them to see the effect on the closing balance quickly.
   
• What if scenarios can be created, to help managers make decisions
   
• Charts can be created to make figures more easily understood