Posted October 10, 2023

Welcome to the first installment of our Spreadsheet Etiquette series where we break down helpful tips when working with spreadsheets in a personal and professional capacity.

In the realm of data analysis and financial modeling, a well-organized spreadsheet is as beautiful as a work of art. Proper spreadsheet structure not only streamlines your work but also ensures that others can understand, use, and modify the model without confusion. Let's delve into dividing your spreadsheet into separate tabs and how it can benefit your model.

Why Separate Your Data?

First, covering why you want to separate your data is essential. A poorly built spreadsheet can cause several downstream issues that you didn't prepare for, such as:

• Need for more time trying to identify where certain data elements are.
• User confusion if someone else is reviewing your model.
• There is an increased chance of errors forming if something is accidentally lost or placed incorrectly.

Alternatively, there are some benefits achieved if your spreadsheet is appropriately formatted, such as:

• Increase ease of adding to or modifying your existing model.
• Organizational users can easily see the results of your analysis and how you got there.
• Easily convert the model to a scalable process (allowing you to refresh or update the model in a shorter time).

Dedicated Tab(s) for your Dataset

The first tab you should create will house your dataset. Your dataset will comprise two types of information: System Data and Supplemental Data.

• System Data is the raw data pulled directly from systems, databases, or reports.
• Supplemental Data are enhancements you make to the System Data if needed. Examples include mapping in different client or address attributes to pre-existing data elements from your database.

Always distinguish your Supplemental Data from your System Data (ex, by color-coding the cell headers). This will help you quickly identify which fields you created vs the ones you added in yourself. It is also worth noting that you may have more than one dataset tab depending on the analysis you are trying to perform. Ideally, it would be best if you did not combine multiple datasets into a single tab.

The Importance of Referential Data Tabs

The next tab you should consider is a Referential Data Tab. Your Referential Tab is used to house static information to enhance the information coming from your dataset, often used in some way within your Supplemental Data. Your Referential Tab should contain mapping tables (typically leveraged using lookup functions such as VLOOKUP, XLOOKUP, or INDEX-MATCH) and checks that ensure the accuracy of your model.

Setting Up Analysis Tabs

The final and arguably the most crucial tab you will create is your Analysis Tab. The Analysis Tab is where you create visualizations, perform calculations, and interpret the data within your model. There are several key features that Excel and Google Sheets offer to help you set up your Analysis Tab:

• Pivot Tables: Pivot Tables are flexible analytical tools on top of your Data Tab. They quickly summarize your data into unique themes in your dataset and can quickly be modified to view different attributes.
• Charts: Spreadsheet software allows you to make charts and identify trends within your dataset. You should be able to pick from several charts within your software that best represent the story you want to tell.
• Functions / Formulas: For more customizable analytic dashboards, use a select number of formulas to capture the most relevant information.

Multiple Analysis Tabs can be used if necessary. Your Analysis Tab should link directly to your Data Tab(s) - this will ensure automatic updating will occur if you ever decide to leverage your model for future analysis.

Conclusion:

The art of spreadsheet design is as much about clarity and user experience as it is about raw calculations. By adopting a structured approach to your workbook organization, you ensure that your data speaks clearly, your analyses shine, and your insights drive actionable results. Remember, in the world of spreadsheets, tidiness isn't just about aesthetics; it's about efficiency, accuracy, and collaboration.