Detailed explanation of Excel currency and accounting number format: When to use which one?

This article will dig into the nuances of currency and accounting numbers formats in Excel, helping you better choose a format that suits spreadsheets. Both are used to display currency values, including the symbols of the selected currency, but there are differences in default alignment, zero value display, negative value display, and adjustability.

Default alignment

In Excel, unformatted numbers are right-aligned by default, making it easier to compare digits and align decimal points. The currency format is also right-aligned, and the currency symbol is ahead of the number; the accounting format is also right-aligned, but the currency symbol is located to the left of the number, which facilitates quick scanning of the consistency of values ​​and currency symbols.

Aligibility of alignment

Numbers in currency format can be manually adjusted to left-aligned or centered like normal numbers and text, suitable for informal spreadsheets with higher style requirements than data analysis. Numbers in accounting format always maintain the default alignment (currency symbols are aligned left and values ​​are aligned right) and cannot be changed manually.

Display of zero value

The zero value in the currency format is displayed as $0.00, similar to the digital format; the zero value in the accounting format is displayed as "-", which facilitates the distinction between positive and negative values ​​in large accounting spreadsheets.

Display of negative currency values

Currency format provides more negative display options, such as red fonts, with or without a negative sign; negative values ​​in accounting formats are displayed as negative numbers, with negative signs ahead of left-aligned currency signs. You can change how negative values ​​are displayed by customizing the format of numbers, such as enclosing them in brackets.

When should I use currency format and accounting format?

• Currency Format: Suitable for informal currency calculations, or spreadsheets with more important style than data analysis.
• Accounting format: is suitable for large financial statements that require large amounts of data analysis, and is more suitable for professional financial spreadsheets.

The following table summarizes their attributes and visual differences:

How to use currency and accounting number formats

1. Select a cell, row, or column that contains or will contain financial values.
2. In the Number group on the Start tab, open the Number Format drop-down list.
3. Click on the "Currency" or "Accounting" format to use the default settings, or click on "Other Number Formats" to see more options.

You can also change the number of decimal places by the "Increase decimal places" or "Decrease decimal places" buttons in the "Numbers" group on the Start tab, or set the default number of decimal places in the Excel Options dialog box.

After understanding the difference between these two digital formats, you can better choose the right format and combine Excel's budgeting capabilities to create a spreadsheet that is both beautiful and practical.