Balancing Aesthetics and Functionality in Spreadsheet Modeling

In Microsoft Excel, you've got a ton of ways to make your models and reports catch the eye of your audience. But here's the deal: too much of a good thing isn't always good. Many folks tend to go overboard, adding fancy stuff that ends up confusing people and making it harder to solve problems.

From what I've seen, there are three common traps people fall into:

1. Colors

Using colors is cool, but too many can be a headache. Stick to a few and use them wisely. For instance, use color coding to quickly distinguish between input and calculating cells. You can also use colors to direct the attention of your audience to the critical aspects of your model. Just make sure you have clear legends to explain what's what.

Expert Tip: There are some widely recognized color guidelines in financial modeling. It's helpful to know about them and use them in your projects.

2. Merging Cells

Sometimes, people try to make their tables look tidy by combining cells. But there's a downside – it makes things more complicated behind the scenes. Merging cells messes up targeted cell selection and can confusion in cell referencing. Fixing formats after undoing cell merging can be a bit tricky, especially when you've used it a lot in a model.

Expert Tip: You can center text without combining cells if you format things correctly. Avoid the hassles of inefficiency caused by merging cells by choosing to format the cells instead.

3. Charts

Charts can be awesome, but only if they tell a story. Don't just throw them in for decoration; they should help explain your data. And always give them titles and labels so people know what's going on.

Expert Tip: When creating a chart, confirm its purpose by saying, 'I'm including this chart because...'. It's a good way to prevent yourself from adding unnecessary charts to your output.

Summary

Remember, it's all about balance. A flashy spreadsheet might look good, but if it doesn't do the job, it's not worth much. I once saw a presentation with all the bells and whistles, but it couldn't answer the main questions in the meeting. The boss said, 'I don't care about colors and charts – show me how this solves our problem.'

In the end, a simple and effective model is better than a fancy one with no substance. Aim for a bit of both, but if you have to choose, go for what gets the job done. It's not about the sparkle; it's about what your work actually achieves.