One of the most important aspects of any accountant job is the analysis of data. Those in these positions will need to have the ability to analyze data in unique ways. Excel offers a fantastic way for accountants to analyze this type of data. But, to betruly effective, one must learn more about the functions and statements that make excel so powerful.
One of the reasons the If Statement is so valuable is because there are many instances when data could be used differently depending on the specific situation. The ‘If Statement’ is one that can help discover the different possibilities for the data in these unique situations. It is also one of the best ways to help with the decision making process.
Because it is such a powerful excel formula, it is important to learn more about how to use the ‘If Statement’ properly in order to fully understand how your data works. With this guide, you will be able to learn more about this special formula so that you can become a more functional Microsoft Excel user.
Using ‘And’ and ‘Or’ with the ‘If Statement’
You can refine the results you receive from your ‘if statement’ even further when you include ‘and’ or ‘or’ in the function. There are a couple of distinct differences in these types of additions. For starters, when you include ‘and’ with the statement, all the conditions must be met in order for the true value to be returned. With the ‘or’ statement, any of the conditions can be true for it to return a true value. Here are a couple of examples of the syntax:
- ‘And’ = AND(A2<100, A3>50=75)
In this example, A2 must be less than 100 and A3 must be greater than 50 for the value 75 to be returned.
- ‘Or’ = OR(A2<100, A3>50=75)
In this example, either of these conditions can be true for the value 75 to be returned.
Nested ‘If Statements;
You can also include nested ‘if statements’. However, the excel program will only allow you to have a maximum of 64 levels in one nested ‘if statement’. To do this, you will combine our ‘if statements’ with the ‘and’ or ‘or’ statements or add multiple ‘if statements’ referencing the same cell. It could look something like this:
- =IF(A2<100, 75,IF(A2>=100, 50))
- =IF(OR(A1=10,A2=20,),”True”,IF(OR(A1=20,A2=10,),”False”))
- =IF(AND(A1<25,A1>2),100,200)
Naturally, when you begin the process of nesting ‘if statements’ in Excel, it is easy to quickly find yourself over your head. However, this is an excellent tool that will help you to cut down on the overall number of formulas that you do need to write. This is especially helpful when you are looking to test for multiple results.
Count – Sum – Average If Statements
Another valuable way you can use the ‘if statement’ is to combine it with count, sum and average. These three options add even more functionality to your ability to evaluate the data within your excel spreadsheet. Here is what you can expect from these valuable formulas:
- Countif – Counts the number of entries that meet a certain criteria
- Sumif – adds the values of the entries that meet the criteria
- Averageif – averages the values of the entries that meet the criteria
Each of these forms of the ‘if statement’ are extremely valuable in a multitude of circumstances. Learning to use them properly can help save you a great deal of time when you are analyzing data. The syntax for these statements are all pretty simple:
=Count/Sum/Averageif(range,criteria)
Final Thoughts
The ‘if statement’ is a valuable and commonly used formula inside of Microsoft Excel. By utilizing it, you are able to learn more about the data you have entered into a spreadsheet, which can help you to make better decisions in the long-run.
While this analysis can be completed in other ways, using the ‘if statement’ will help you to save time that you may have needed to spend doing things by hand. It also helps to eliminate errors that you may make during the analysis process so that you are certain you are receiving the best results from your data and having the ability to analyze it fully.
By learning more about these formulas and the proper way to use them, you will be able to become more efficient with the work you do within the program. This skill, not only allows you to get ahead in your industry, but can help make your time better spent in the process.
To learn even more about how you can prepare to be successful in the accounting field, be sure to contact us today.