The Top 10 Excel Formulas Every Business Owner Should Know

Microsoft Excel is a powerhouse tool that can transform the way you handle data, finances and business operations. Whether you’re managing budgets, tracking sales or analysing customer data, mastering Excel formulas can save you time and improve accuracy. If you’re a business owner, entrepreneur or professional juggling multiple responsibilities, knowing the right formulas can make a world of difference.

In this blog post, I’ll walk you through the top 10 Excel formulas that will help streamline your workflow and improve productivity.

1. SUM

Formula: =SUM(range)

The SUM function is one of the most frequently used formulas in Excel. It allows you to add a series of numbers together quickly.

Example: If you have sales data in cells A1 to A10 and want to find the total revenue, simply use:

=SUM(A1:A10)

This eliminates the need for manual addition and reduces errors.

2. AVERAGE

Formula: =AVERAGE(range)

If you need to find the average value of a set of numbers, AVERAGE is the function to use.

Example: If you want to find the average monthly sales based on values in cells B1 to B12, enter:

=AVERAGE(B1:B12)

This is useful for financial forecasting and performance analysis.

3. IF

Formula: =IF(logical_test, value_if_true, value_if_false)

The IF function is a game-changer when you need to apply logic-based conditions to your data.

Example: If you want to check whether a salesperson met their target (where the target is 5000 in cell B1 and actual sales are in C1):

=IF(C1>=B1, "Target Met", "Target Not Met")

This function helps automate decision-making in spreadsheets.

4. VLOOKUP

Formula: =VLOOKUP(lookup_value, table_array, col_index_num, [range_lookup])

VLOOKUP is essential for searching a value in a table and returning data from another column.

Example: If you have a list of products with their prices and need to find the price of a product in cell A2 from a table in range B2:D10, use:

=VLOOKUP(A2, B2:D10, 2, FALSE)

This is especially useful for inventory management and pricing strategies.

5. HLOOKUP

Formula: =HLOOKUP(lookup_value, table_array, row_index_num, [range_lookup])

Similar to VLOOKUP but searches in rows instead of columns.

Example: If you have a table where months are in row 1 (A1:J1) and sales are in row 2 (A2:J2), you can find February’s sales with:

=HLOOKUP("February", A1:J2, 2, FALSE)

6. INDEX

Formula: =INDEX(array, row_num, [column_num])

The INDEX function returns the value at a specific row and column of a given range.

Example: If you have a data table in A2:C5 and want to extract the value in the second row and third column:

=INDEX(A2:C5, 2, 3)

This is useful when working with large datasets where VLOOKUP might be inefficient.

7. MATCH

Formula: =MATCH(lookup_value, lookup_array, match_type)

MATCH returns the position of a value within a range.

Example: If you need to find the position of "Laptop" in range A2:A10:

=MATCH("Laptop", A2:A10, 0)

Combine this with INDEX for more advanced lookups.

8. CONCATENATE / TEXTJOIN

Formula: =CONCATENATE(text1, text2, …) (or =TEXTJOIN(delimiter, ignore_empty, text1, text2, …) in newer versions)

These functions combine text from different cells into one.

Example: If you want to combine first and last names from A2 and B2:

=CONCATENATE(A2, " ", B2)

In Excel 2016 and later, TEXTJOIN is more powerful:

=TEXTJOIN(" ", TRUE, A2, B2)

This is helpful for creating full names, product descriptions or reference numbers.

9. LEFT, RIGHT, MID

Formulas:

• =LEFT(text, num_chars) – Extracts characters from the left.

• =RIGHT(text, num_chars) – Extracts characters from the right.

• =MID(text, start_num, num_chars) – Extracts characters from the middle.

Example: If A2 contains "INV12345" and you want to extract "12345":

=MID(A2, 4, 5)

Great for working with product codes and IDs.

10. COUNT & COUNTA

Formulas:

• =COUNT(range) – Counts numeric values.

• =COUNTA(range) – Counts all non-empty cells.

Example: To count how many numeric values are in A1:A10:

=COUNT(A1:A10)

To count all non-empty cells:

=COUNTA(A1:A10)

These functions are useful for tracking records and ensuring data completeness.

Mastering these Excel formulas can significantly improve how you manage your business data. Whether you’re analysing financials, tracking inventory or handling customer data, these formulas will save time and reduce errors.

Want more tips on streamlining your business tasks? Let me handle the admin while you focus on growth. Get in touch with Ask Wendy today!