flevyblog

Flevy Blog is an online business magazine covering Business Strategies, Business Theories, & Business Stories.
MANAGEMENT & LEADERSHIP STRATEGY, MARKETING, SALES OPERATIONS & SUPPLY CHAIN ORGANIZATION & CHANGE IT/MIS Other

How to Test a Candidate’s Advanced Excel Skills

Editor's Note: Take a look at our featured best practice, Advanced Financial Model with DCF & Valuation (Excel workbook). General Overview Advanced Financial Model including DCF & Valuation, suitable for any type of business/industry and fully customizable. Template is built using Financial Modeling Best practices and includes Scenario basis 3 Statement Financial Model for First Year and up to 10-Year Forecast [read more]

* * * *

In this day and age where most workflows are automated, employees must have basic computer skills to keep up. No matter the size, company job vacancy announcements should include computer literacy as a must-have for applicants.

For instance, basic knowledge may be enough for entry-level positions such as assistants, while project managers and reporting officers will likely need mid-level expertise. Meanwhile, more complex functions such as accountants or financial analysts require advanced Microsoft (MS) Excel skills to ensure proper business monitoring.

It’s crucial to find out more about a candidate’s strengths during the screening process. Besides the interview, a practical test like this advanced Excel test must be administered to ensure you’re getting top talents for your company. If you’re giving out the evaluation yourself, consider the following points.

5 Excel Problem-Solving Functions to Evaluate

The mastery of the Excel application would require formal training and years of practice. That’s because using advanced Excel functions requires familiarity with functions and formulas and careful analysis of models and data. The user must know the proper commands, the data to be processed, and the desired results to manipulate the program according to specific business objectives.

To test for advanced proficiency, companies may set different metrics. Headhunters can use these indicators to identify candidates with high-level Excel skills.

1. Using Advanced Formulas and Creating Meaningful Charts

Basic knowledge of Excel would allow users to create basic comparison charts. However, this is not enough for positions needing data analysis and research. For more complex sheets, for instance, showing discounted cash flow template, projected income, and other data analytics, the user must know how to use and present a histogram or similar charts.

To create one, the candidate must know how to make Excel work for them by using more advanced formulas. Instead of the usual SUM, PRODUCT, and AVERAGE computations, more advanced procedures such as the proper uses of IFERROR with VLOOKUP, SUMPRODUCT IF, COUNTIF, and other complex calculations must be included in the problem.

2. Tapping Data Simulations and Solver

Data simulation works in the same principle as machine learning. In order to function correctly and solve a problem, it has to have solid data input. With the right data and ‘command’ or mathematical formula, it can calculate projections or any results your business wishes to know.

Excel’s simulation feature is helpful for businesses looking to create financial projections and other forecasts, or planning budgets and expenses. On the other hand, Solver is another intricate Excel add-on used in data analysis. It shows a range of values for a formula in a single cell based on restrictions associated with the values of other cells reflected on a worksheet.

Enterprises can use this feature in comparing projected earnings versus varied spending amounts in marketing a product. Business analysts and accountants must be tech-savvy and possess these advanced Excel skills to help executives make data-driven decisions.

3. Proficiency in Power Query and Power Pivot

This highly valuable business tool enables users to quickly manipulate and analyze data from multiple sources. A candidate must be able to use it properly to access and get the correct data from several worksheets based on a specific data model. Additionally, they must analyze them and create insights that aim to resolve a particular problem.

Power Pivot works complementary to Power Query, the first step in data gathering. With the latter, candidates can import data from multiple sources and format it into Excel. Depending on the test requirements, the user can then remove unnecessary data or merge cell entries using the former.

4. Visual Basic for Applications (VBA)

Visual Basic for Application is a programming code generated from macro recording. Jobs that require data analysis will find this highly useful in processing numerous data. Learning this skill would require familiarity with the different formulas, as the results can be skewed if the user doesn’t know how to use it.

VBA can generate different types of results based on your needs. For instance, financial analysts and investors can cull complex functions from the program, including financial ratios, sales, income forecasts, pricing, and risk management information.

5. Making Conditional Formatting Rules

To highlight the salient points in a worksheet, users may apply different formatting styles, for instance, using different colors and data bars, and placing icons on a few cells. These can be very helpful when dealing with complex formulas, making spreadsheets simpler and easier to work on.

Conditional formatting rules simplify complex data processing, and the candidate must know how to use advanced formatting systems to make complicated worksheets easier to understand and digest.

Final Thoughts

While most positions require basic knowledge of Microsoft Office applications, proficiency levels can vary based on specific job responsibilities and the industry the candidate should be working for. However, for accountants and business or financial analysts, advanced Excel skills are a must.

If your organization is looking for someone to engage in business forecasts, monitoring, planning, and analysis, they must know how to work around multiple and complex worksheets as a requirement. The guide above can help you determine in part whether they’re the right person for the job.

Excel workbook
he template provides a 3 statement model that links the income statement, balance sheet, and cash flow statement into one dynamically connected financial model. This model acts as the base on which more advanced financial models are built, such as discounted cash flow (DCF) models, [read more]

Do You Want to Implement Business Best Practices?

You can download in-depth presentations on Integrated Financial Model and 100s of management topics from the FlevyPro Library. FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives.

For even more best practices available on Flevy, have a look at our top 100 lists:

These best practices are of the same as those leveraged by top-tier management consulting firms, like McKinsey, BCG, Bain, and Accenture. Improve the growth and efficiency of your organization by utilizing these best practice frameworks, templates, and tools. Most were developed by seasoned executives and consultants with over 20+ years of experience.

Readers of This Article Are Interested in These Resources


Excel workbook
Of all the new kinds of enterprise solutions made available by the advent of the internet, one of the most disruptive, most useful and most recent has been the software as a service (SaaS) business model. SaaS is a delivery model in which a centrally hosted software is licensed to customers [read more]


 
Excel workbook
 
 
Excel workbook

About Shane Avron

Shane Avron is a freelance writer, specializing in business, general management, enterprise software, and digital technologies. In addition to Flevy, Shane's articles have appeared in Huffington Post, Forbes Magazine, among other business journals.


Complimentary Business Training Guides


Many companies develop robust strategies, but struggle with operationalizing their strategies into implementable steps. This presentation from flevy introduces 12 powerful business frameworks spanning both Strategy Development and Strategy Execution. [Learn more]

  This 48-page whitepaper, authored by consultancy Envisioning, provides the frameworks, tools, and insights needed to manage serious Change—under the backdrop of the business lifecycle. These lifecycle stages are each marked by distinct attributes, challenges, and behaviors. [Learn more]

We've developed a very comprehensive collection of Strategy & Transformation PowerPoint templates for you to use in your own business presentations, spanning topics from Growth Strategy to Brand Development to Innovation to Customer Experience to Strategic Management. [Learn more]

  We have compiled a collection of 10 Lean Six Sigma templates (Excel) and Operational Excellence guides (PowerPoint) by a multitude of LSS experts. These tools cover topics including 8 Disciplines (8D), 5 Why's, 7 Wastes, Value Stream Mapping (VSM), and DMAIC. [Learn more]
Recent Articles by Corporate Function

  

  

  

  

  

The Flevy Business Blog (https://flevy.com/blog) is a leading source of information on business strategies, business theories, and business stories. Most of our articles are authored by management consultants and industry executives with over 20 years of experience.

Flevy (https://flevy.com) is the marketplace for business best practices, such as management frameworks, presentation templates, and financial models. Our best practice documents are of the same caliber as those produced by top-tier consulting firms (like McKinsey, Bain, Accenture, BCG, and Deloitte) and used by Fortune 100 organizations. Learn more about Flevy here.
  


OUR CORE OFFERINGS
Flevy Marketplace: Top 100
· Strategy & Transformation
· Digital Transformation
· Operational Excellence
· Organization & Change
· Financial Models
· Consulting Frameworks
· PowerPoint Templates
FlevyPro (Subscription Service)
KPI Library
Streams (Functional Bundles)
Flevy Executive Learning (FEL)
PowerPoint Services

FREE Resources

About Flevy
Management Topics
Marcus (AI-Powered Consultant)
Partner Program
LinkedIn Influencer Marketing
FAQ / Terms / Privacy / Blog
Contact Us: support@flevy.com



CONNECT WITH US!
       
TOP 100 TRENDING TOPICS
Acquisition Strategy
Agile
Analytics
Artificial Intelligence
Balanced Scorecard
Best Practices
Big Data
Breakout Strategy
Business Continuity Planning
Business Plan Financial Model
Business Transformation
CMMI
COBIT
Change Management
Cloud
Communications Strategy
Company Financial Model
Competitive Advantage
Competitive Analysis
Consulting Frameworks
Continuous Improvement
Core Competencies
Corporate Culture
Cost Reduction Assessment
Customer Experience

BROWSE BY FUNCTION
Strategy, Transformation, & Innovation
Digital Transformation
Operational Excellence and LSS
Organization, Change, & HR
Management Consulting

Customer Journey
Customer Service
Cyber Security
Data Privacy
Decision Making
Digital Marketing Strategy
Digital Transformation
Digital Transformation Strategy
Due Diligence
ESG
Employee Engagement
Employee Training
Enterprise Architecture
Growth Strategy
HR Strategy
Hiring
Hoshin Kanri
ISO 27001
ITIL
Information Technology
Innovation Management
Integrated Financial Model
Kaizen
Kanban
Key Performance Indicators

ADDITIONAL RESOURCES
Business Strategy Frameworks
Case Studies
Consulting Training Guides
COVID-19 Trend Data
Digital Transformation
Financial Advising Services (FAS)

Knowledge Management
Leadership
Lean
Lean Manufacturing
Logistics
M&A (Mergers & Acquisitions)
Manufacturing
Market Research
Marketing Plan Development
Maturity Model
McKinsey PowerPoint
McKinsey Templates
Operational Excellence
Organizational Change
Organizational Design
Performance Management
Post-merger Integration
Pricing Strategy
Process Improvement
Process Maps
Procurement Strategy
Product Launch Strategy
Product Strategy
Project Management
Quality Management


Free Resources
KPI Library
Lean Management
Lean Six Sigma Training Guides
Marcus Insights
Operational Excellence

Real Estate
Remote Work
Restructuring
Risk Management
Robotic Process Automation
SWOT
SaaS
Sales
Scrum
Service Design
Six Sigma Project
Social Media Strategy
Strategic Planning
Strategic Thinking
Strategy Development
Supply Chain Analysis
Sustainability
Target Operating Model
Team Management
Total Productive Maintenance
Value Chain Analysis
Value Creation
Value Stream Mapping
Visual Workplace
Workplace Safety


Product Strategy
Small Business Owner
Startup Resources
Strategic Planning
Strategic Planning Process
Value Innovation Strategy


© 2012-2024 Copyright. Flevy LLC. All Rights Reserved.