Finance professionals often rely on Excel for building reports because it offers universal compatibility across departments without requiring specialized software.

Its flexibility enables customization to meet specific reporting needs while maintaining formula transparency. In fact, 58% of finance leaders still use Excel as their primary automation tool, despite the rise of AI and specialized software.

Why Excel Reports Matter for Finance Teams

Excel remains the backbone of financial reporting despite newer specialized tools. Finance professionals rely on Excel for building reports because it offers universal compatibility across departments without requiring specialized software. Its flexibility enables customization to meet specific reporting needs while maintaining formula transparency.

When finance teams need to create excel reports, they can trace calculations step-by-step, which builds trust in the numbers. This transparency is particularly crucial during audits or when presenting findings to stakeholders who may question how financial metrics were derived.

• Universal Compatibility: Excel files can be shared across departments without compatibility issues

• Customization: Finance teams can tailor reports to specific business requirements

• Formula Transparency: Visible calculations allow others to understand how financial metrics are derived

While modern FP&A platforms like Abacum offer automation advantages, understanding how to build a report in Excel remains a fundamental skill for finance professionals.

How to Prepare Data for Creating Reports in Excel

Before learning how to create a report in Excel, proper data preparation is essential. Raw financial data often comes from multiple sources with inconsistent formats. Standardizing this data creates the foundation for accurate financial reporting.

The first step in preparing reports in Excel is organizing your data into a consistent, tabular structure. This means standardizing date formats, account names, and numerical presentations to ensure everything aligns properly when creating formulas and visualizations.

Proper data preparation saves hours of troubleshooting later and ensures your excel reporting reflects accurate information. Finance teams should establish data standards before beginning the report creation process.

Step-By-Step Process to Build a Report in Excel

1. Import data and organize tabs

To start building reports in Excel, import financial data through Excel's data import tools or by copying from source systems. Create a logical tab structure with separate sheets for raw data, calculations, and final presentation.

For financial reports, create dedicated tabs for each financial statement plus supporting schedules. Label tabs clearly and use a consistent color-coding system to distinguish between input data, calculation worksheets, and presentation sheets.

This organization keeps the report manageable and makes it easier to update when new data becomes available. Think of each tab as serving a specific purpose in your reporting workflow.

2. Create a PivotTable or structured table

When learning how to create reports in Excel, you'll need to transform raw data into meaningful tables. Use Excel's PivotTable feature for dynamic analysis or create structured tables for more customized financial reports.

PivotTables excel at summarizing large datasets and allowing users to drill down into details. For financial reporting, they can quickly summarize revenue by product line, expenses by department, or profitability by customer segment.

• For dynamic analysis: Use PivotTables when you need to frequently change how data is summarized

• For standardized statements: Use structured tables when layout precision matters

• For visual impact: Add conditional formatting to highlight variances or exceptions

Creating a report as a table in Excel provides more formatting control and works well for standardized financial statements where presentation matters.

3. Use formulas to summarize results

The next step in how to make a report in Excel is applying formulas to calculate key financial metrics. Start with basic functions like SUM and AVERAGE before progressing to more specialized financial calculations.

Essential formulas for excel reporting include:

• =SUMIF(range, criteria, sum_range): Calculate department-specific expenses

• =IF(logical_test, value_if_true, value_if_false): Create conditional calculations

• Financial ratios: Build formulas for gross margin (=Gross Profit/Revenue)

Link calculations between tabs using cell references to create an integrated report. This approach reduces errors and saves time during updates, making your excel generate report process more efficient.

4. Insert charts or visuals

Visual elements are crucial when creating reports from Excel data. Select chart types that best communicate the financial story: line charts for trends over time, bar charts for comparisons, and pie charts for showing composition.

For financial dashboards, consider using sparklines to show trends in a compact format. Position charts strategically within the report to support the narrative flow from high-level summary to detailed analysis.

Include clear titles and labels that explain what the chart represents without requiring additional context. This makes your reports in Excel immediately understandable to stakeholders who may only glance at the visuals.

4 Tips for Making Reports in Excel That Look Professional

When making reports in Excel, professional formatting is essential. Establish a style guide that specifies fonts, colors, and number formats to be used across all financial reports.

Apply consistent formatting throughout with the same font style, size, and color scheme. Create distinct section headers with larger font sizes or background colors to guide readers through the report structure.

• Consistent Formatting: Use the same number formats for currencies, percentages, and dates

• Clear Headers: Make section titles stand out with background colors or borders

• Conditional Formatting: Highlight variances with color scales or icon sets

• Print Settings: Configure proper page breaks and headers for printed reports

Professional excel reports also benefit from thoughtful white space management. Avoid cramming too much information onto a single screen or page. Group related information together with clear separation between different sections.

Advanced Formulas and PivotTables for Excel Reporting

1. SUMIFS and COUNTIFS

SUMIFS and COUNTIFS functions enable multi-criteria analysis essential for detailed financial reporting. These functions allow finance teams to filter data based on multiple conditions simultaneously.

For example, use =SUMIFS(sales_range, date_range, ">="&start_date, date_range, "<="&end_date, product_range, "Product A") to calculate sales for a specific product within a date range. This approach provides granular analysis without creating multiple separate reports.

When building reports in Excel, these functions help answer complex questions that basic summaries cannot address. They're particularly valuable for variance analysis and performance tracking across multiple dimensions.

2. VLOOKUP or XLOOKUP

In financial reports, use these functions to automatically pull account descriptions based on account numbers. XLOOKUP offers advantages over VLOOKUP with its ability to search in any direction and return multiple values. Additionally, Power Query users save 30% of their work time (76 days/year) and $80K annually per organization on average.

In financial reports, use these functions to automatically pull account descriptions based on account numbers. XLOOKUP offers advantages over VLOOKUP with its ability to search in any direction and return multiple values.

These lookup functions save time and reduce errors when preparing reports in Excel that require data from multiple sources. They create dynamic connections that update automatically when reference data changes.

3. Calculated fields within PivotTables

Calculated fields transform PivotTables from simple summary tools into powerful analytical instruments. These custom calculations update automatically when the underlying data changes, ensuring reports always show current metrics.

Create calculated fields for year-over-year growth percentages, contribution margins, or custom KPIs specific to the business. Access this feature by selecting a PivotTable, clicking the "Fields, Items & Sets" option in the PivotTable Analyze tab, and choosing "Calculated Field."

This capability takes excel reporting to the next level by enabling complex calculations within the PivotTable framework. It eliminates the need for separate formula columns in your source data.

Automating and Refreshing Data in an Excel Report: Is It Really an Issue?

1. Data connection settings

Connect Excel directly to data sources to eliminate manual data entry when generating reports from excel data. Excel can connect to databases, accounting systems, and other applications through various connection methods.

Configure connection settings by navigating to the Data tab and selecting "Get Data" to choose from available sources. For financial reporting, common connections include SQL databases, ERP systems, or even other Excel workbooks that serve as data repositories.

This approach ensures your reports reflect the most current information available. It's a critical step toward automating the reporting process and reducing manual effort.

2. Scheduled refresh

Set up automatic data refreshes to keep reports current without manual intervention. In Excel for Microsoft 365, configure refresh schedules through the Data tab by selecting a connection and choosing "Properties" to set refresh timing.

For shared reports, consider using Power Query's refresh capabilities which can update data connections on a fixed schedule. This ensures that when stakeholders open the report, they see the most current financial information available.

3. Macro-based automation

Automate repetitive tasks in excel reporting using Excel's macro capabilities. Simple macros can format reports, generate standard charts, or create month-end snapshots with minimal user intervention.

A basic macro for financial report formatting might include standardizing number formats, applying consistent header styles, and adjusting column widths for optimal display. Access the macro recorder from the Developer tab or use Alt+F11 to open the Visual Basic Editor for more complex automation.

Macros can transform how to produce reports in Excel from a manual process to an automated one. They're particularly valuable for reports that must be generated regularly with consistent formatting.

Best Practices for Building Reports in Excel

1. Ensuring data accuracy

Data accuracy forms the foundation of trustworthy financial reporting. Implement validation checks that compare totals across different sections of the report to identify discrepancies.

Create reconciliation formulas that verify that the balance sheet balances and that net income flows correctly between statements. For critical reports, build in cross-validation formulas that compare calculated totals against control totals from source systems.

This double-check approach catches formula errors or data import issues before reports are distributed. It's an essential quality control step when learning how to create report excel documents that stakeholders can trust.

2. Maintaining consistent formats

Format inconsistency undermines the professionalism of financial reports. Create and save custom cell styles for different elements of financial reports to ensure consistent application throughout.

Use Excel's Format Painter to quickly copy formatting between similar sections. For reports created regularly, develop a template with pre-formatted sections and protected formulas to maintain consistency across reporting periods.

Consistent formatting makes reports easier to read and understand. It also creates a professional appearance that enhances the credibility of the finance team's work.

3. Building a template library

Develop a library of reusable templates for common financial reports to improve efficiency and consistency. Create standardized templates for monthly financial statements, budget variance reports, and department-specific dashboards.

Store templates in a central location accessible to the finance team with clear naming conventions and version control. Include documentation within each template explaining data sources, update procedures, and intended audience.

Templates dramatically reduce the time required to create report in Excel as a table or other format. They ensure consistency across reporting periods and make it easier to train new team members on reporting procedures.

Abacum for Excel: Elevate Financial Reporting and Collaborate Across Teams

Effective Excel reporting does more than present numbers, it facilitates better decision-making across the organization. Well-designed financial reports provide clarity on performance and create a common understanding of the company's financial position.

While Excel offers powerful capabilities for building reports in Excel, modern finance teams increasingly complement spreadsheets with specialized tools. Purpose-built financial planning platforms like Abacum streamline data integration, automate routine calculations, and enhance collaboration.

These platforms preserve the flexibility finance teams need while eliminating many manual steps in the reporting process. They represent the evolution of financial reporting beyond traditional spreadsheets.