The Differences Between Accounting and Currency Formatting in Microsoft Excel
01.10.2020
When entering dollar values in Microsoft Excel, you should NOT type the dollar sign. You should enter the raw numbers only.
Once the numbers are entered, you can format them to look like dollar values. Excel provides two primary format options: Accounting and Currency. So what are the differences between the two formats?
To format numbers using the Accounting number format:
- Select the cells containing the numbers you wish to format.
- Select the dollar sign icon in the Number group on the Home tab. When you hover over this icon, notice it is technically called the Accounting Number Format.
The Accounting format aligns dollar signs at the left edge of the cell, and it adds extra space between the value and the right edge of the cell. Negative numbers are displayed in parentheses, and zero values are displayed with a simple dash.
But Excel offers a second formatting option, called Currency.
To format numbers using the Currency number format:
- Select the cells containing the numbers you wish to format.
- Select Currency from the drop-down list in the Number group on the Home tab.
The Currency format aligns the dollar signs at the left edge of the number rather than the cell, and there is no extra space between the value and the right edge of the cell. Negative numbers are not displayed in parentheses, but they have a negative symbol, and zero values are displayed with an actual zero.
One of my craziest experiences as a technology trainer was an Excel class that I taught to a group of guys on Wall Street in New York. They argued for more than thirty minutes over whether to use currency or accounting in their quoting templates. At one point, the argument got so heated that one guy threw his chair at another guy who ended up needing stitches above his eye. So, while the differences between these two number formatting options may seem minor, some people feel passionate about one format over the other. And, by the way, the group decided to go with the Accounting format.
If you are interested in learning more, consider registering for one of our online Microsoft Excel courses or request a quote to bring one of our experts to your location.
