It is often most useful to test an assumption when you initially suspect there is a relationship between two variables.Ĭorrelation can be determined using scatter plot charts in Excel as below, where one variable is charted against the second. This technique allows you to determine whether there is a relationship between two separate variables and if so how strong that relationship may be. In this easy accounting guide will be looking at how we can apply Excel to the following:Īn easy way to explain correlation analysis is where you may have wondered if there is a relationship between the daily temperature outside and when people get their hair cut? Finding the relationship between these data sets is known as correlation analysis.

There are a number of different analytical tools available to accountants and finance professionals to assist with extracting and analysing data however, we would like to focus in this article on tools which are easily accessible via Excel so are effectively available with no additional costs to the company. Astin Accounts Solutions Managing Director looks at some easy-to-use analytical tools in Excel Is there such a thing as easy accounting? Well, clearly, companies need expertise and professional support for many tasks but there are some you perform in-house at no extra cost and with just a little bit of knowhow.

How to find data analysis tool in excel