What is Excel and how can you use Excel for controlling?

At a glance

• Excel is available in almost every company and can be used for basic functions without training.
• In controlling, Excel is suitable for ad hoc analyses, prototypes, and manageable planning models.
• With each additional file, user, and data source, the risk of errors and the consolidation effort increase.
• Typical errors can be reduced through a clean model structure, but not entirely eliminated.
• DeltaMaster from Bissantz supplements or replaces Excel wherever central data storage and audit compliance are required.

Excel definition

Microsoft Excel is the most widely used spreadsheet program in the world. It allows users to capture data in a two-dimensional grid, link it with formulas, present it graphically, and save it in file form. Excel is part of Microsoft 365 and is therefore available by default in almost all corporate environments.

The core functions include:

• Cell-based calculation with formulas and functions (e.g., SUM, VLOOKUP, INDEX/MATCH)
• Pivot tables for flexible data aggregation and analysis
• Charts and visualizations for preparing series of figures

In corporate practice, Excel plays a dual role: it is simultaneously a data container, a calculation engine, a reporting format, and a communication medium – a versatility that explains its success but also defines its limits.

What are typical areas of application of Excel in controlling?

Excel in corporate planning

• Budgeting and annual planning: Controllers create planning templates that are distributed to departments, filled in, and consolidated. Quick to set up, without an additional license – but as soon as several versions circulate, version chaos ensues.
• Forecasting and rolling planning: Actual data is updated manually or via ERP import, and scenarios are tested by simply overwriting cells. Disadvantage: Who changed what and when? Without additional discipline, this cannot be reconstructed.
• Scenario planning: With data tables or the Scenario Manager, revenue assumptions can be varied and their impact on EBIT or cash flow can be read off directly. Valuable – as long as the model remains manageable.
• Consolidation: Subsidiaries deliver planning data in standardized Excel workbooks, which are merged centrally. Error-prone, time-consuming, and barely scalable.

Excel in analysis

• Ad hoc analyses: Export raw data from ERP or data warehouse, aggregate it via pivot table, and gain initial insights within minutes. This strength remains undisputed – even where BI systems are in use.
• Scenario and sensitivity analyses: Parameter fields and the Scenario Manager enable quick what-if considerations. Works well with manageable, cleanly documented models.
• Data modeling with Power Query and Power Pivot: Import, clean, and link data from various sources in relational models. A considerable gain for controllers without a full-fledged BI infrastructure – but it reaches performance limits with large volumes of data.

Excel in reporting

• Standard reports and management reporting: Report templates are filled with current data each month and passed on as PDF or Excel. The almost unlimited design freedom is double-edged: in practice, it frequently leads to inconsistent, overloaded reports.
• Variance analyses: Plan-actual comparisons and variance analyses can be quickly implemented with simple formulas and conditional formatting. However, for multidimensional analyses across several periods, regions, and product groups, Excel quickly becomes unwieldy.
• Visualization and dashboards: Excel offers a broad range of chart types and allows building simple dashboards. However, interactivity is limited, updates are manual, and the display quality lags behind specialized visualization tools.

What are the strengths of Excel in controlling?

Excel has not acquired its standing by chance. The following properties make it attractive for controlling:

• Availability and prevalence: Excel is installed in almost every company. No onboarding, no training for basic functions, no license negotiation is necessary. Controllers can get started immediately.
• Maximum flexibility: No controlling or BI system is as flexible as a blank Excel spreadsheet. Special structures, individual planning logic, unusual report formats – all of this can be represented without running into system limits.
• Quick prototypes: New planning models, calculation schemes, or reporting structures can be quickly designed and tested in Excel before being transferred to a professional system.
• Broad acceptance: Excel is understood equally by controllers, department heads, and executives. Reports and models in Excel do not need to be explained – the format is a matter of course.

What are the weaknesses and risks of Excel in controlling?

The risks of using Excel in controlling are well documented and extensively described in the professional literature as well as in practical studies:

What are best practices for Excel in controlling?

Anyone using Excel for analysis, planning, or reporting should observe the following basic principles:

Application examples: Where is Excel used in controlling?

Excel accompanies controlling in planning, analysis, and reporting. The following areas of application show typical situations in companies.

Summary

Excel is indispensable in controlling for fast analyses, prototypes, and manageable models. In company-wide planning, with many participants and an audit obligation, the file structure and manual work steps lead to version chaos and errors. DeltaMaster from Bissantz combines the flexibility of Excel with central data storage, automatic consolidation, and an audit trail.