Automation in Microsoft Excel – how can you use the program’s functionalities in your daily work?

In today’s dynamic business environment, organizations face constant challenges to remain efficient and competitive. In this context, one of the key aspects that often consumes a lot of time and resources is the preparation of various documents, such as financial records, reports, commercial offers, reports or tax documentation.

The process of creating such documents requires precision, accuracy and often involves many repetitive steps. Each organization takes an individual approach to automating processes and streamlining work in administrative and project areas. Here are some practical tips to help speed up daily project work in Microsoft Excel and Word.

Using functions in Microsoft Excel

It has been known for a long time that Excel offers many possibilities to improve the analysis of large amounts of data for users of different levels of expertise. It is worthwhile to learn about and use Excel features such as:

  • Spreadsheet functions: the use of built-in mathematical and logical functions allows you to automate calculations, which significantly speeds up the process of creating reports and data analysis.
  • Pivot tables: creating pivot tables makes it easy to analyze large data sets and generate reports in a few moments.
  • Macros and scripts: advanced users can create macros and scripts that automate repetitive activities and processes.
  • Conditional formatting: setting automatic formatting based on certain criteria can save time when analyzing data.
  • Importing data from external source files: functionalities allow you to effectively combine different data sources.

Examples of practical functions in Microsoft Excel:

  • IF in Excel is one of the most versatile and useful functions. It allows you to perform certain actions depending on the fulfillment of a certain condition. This function can also be set in dynamic form, which means that the condition we are analyzing can be a variable element to be further analyzed.
  • SEARCH VERTICALLY is useful for searching for specific data in a column and returning the corresponding value from the same or another column in the same table. Importantly, the data must be stored in the form of tables, and the variable by which we search for other parameters (such as the name of the company) should be in the first column of the table.
  • Boolean functions (AND, OR) allow the user to identify records that meet certain criteria. The AND function forces records to meet all conditions simultaneously, while the OR function will return a record that meets at least one of them.
  • SUM OF CONDITIONS allows you to sum values based on certain criteria or conditions, eliminating the need to use logical functions and allowing Excel to add only the records of interest to the user.

Excel allows you to automate tasksand perform various types of calculations or analysis, which is extremely useful at work. You can create complex formulas and functions, which automatically calculate results based on the entered data. This saves time and minimizes the risk of manual calculation errors. You can import data from different sources, sort filter, group and analyze them in an automated way. In addition, Excel can be integrated with other programs and applications, allowing automatic data transfer. between them.

How to apply Microsoft Excel functionality to taxes?

The world of tax and finance is an area where every detail is of great importance. For companies, creating accurate and comprehensive tax documentation is not only a legal requirement, but also a key element of business strategy. In this context, it is worth noting what a powerful tool Microsoft Excel is, which can significantly facilitate the process of creating specialized tax documentation.

1. Benchmarks and benchmarking reports

One of the key elements of tax documentation are benchmarks. They allow the  precise selection of entities with predetermined goals and specific financial data. On the basis of these, it is possible to analyze whether a transaction between counterparties is in line with the market, making it possible to assess whether it was concluded under the market conditions that unrelated parties would apply. Excel offers a wide range of functions that make it easy to create precise analyses. With spreadsheets, mathematical formulas and charts, we can quickly and efficiently compare financial results with market data.

Benchmarking reports are another integral part of tax documentation. They allow an in-depth analysis of a company’s activities in the context of a given transaction, competition and market. Microsoft Excel and Word allow the creation of advanced reports that include both numerical data and charts, facilitating the presentation of key indicators and trends.

2. Transfer pricing documentation

Transfer pricing documentation is a document that requires special attention and accuracy. Excel is an excellent tool for collecting, analyzing and presenting transfer pricing data. In it, we can create complex tables that contain information about transactions between related parties and analyze them for compliance with tax requirements. In addition, MDDP, with the help of Microsoft Excel, has created a proprietary Smart.TP application that allows automatic preparation of transfer pricing documentation based on data completed by users or external batch files.

The dedicated application allows customization of transfer pricing documentation for any type of controlled transaction and is integrated with the application for preparing transfer pricing information – Smart.TPR. Thanks to the integration of the two applications from the “smart” line, the taxpayer are able to take advantage of full automation with special care and avoid repetitive errors associated with data migration.

More than one use of Microsoft Excel

As you can see from the above examples, Microsoft Excel, thanks to its advanced mathematical, graphical, data analysis and automation functions, allows you to accurately prepare documents that are not only compliant with the law, but are also a mandatory obligation for taxpayers. Therefore, it is worth investing time and effort in learning how to use this tool, as it can significantly facilitate work in the field of taxation and finance.

In summary, Excel’s functionality is indispensable in everyday work due to its ability to automate processes, save time and make calculations more precise. It is a versatile tool that can be adapted to many fields and professional needs, making it an indispensable part of modern office work.

If there is apparent space in your organization to apply automation using Microsoft Excel, but you do not have the competencies to implement them, our MDDP experts will be happy to discuss the possibilities with you and help you map out the process.

Magda Sosińska

Magdalena Sosińska

Senior Consutant, Transfer Pricing Practice

Tel.: (+48) 504 400 396