Definition
The TODAY Excel Function is a built-in function in Microsoft Excel that is used to return the current date. The function does not have any arguments and only returns the date according to the computer’s system date. It updates automatically when the date on the system changes, providing the most accurate date each time the worksheet recalculates.
Key Takeaways
- The TODAY Excel function is a built-in Date/Time function in Excel that is used to get the current date. This function refreshes the current date every time your worksheet recalculates.
- The syntax of the TODAY function is very simple, as it does not require any arguments. You just need to enter “=TODAY()” into the cell where you want the current date to appear.
- One of the key benefits of the TODAY function is its use in calculating durations. By using this function, Excel can automatically update every day to reflect the current date, which means it can automatically calculate age, tenure, deadlines, due dates, or other time-related elements.
Importance
The TODAY Excel function, or Today’s Date, is incredibly important in finance due to its role in time-sensitive calculations and financial tracking.
It allows for real-time tracking of date-driven financial measures, such as maturity dates on bonds, due dates for invoices, or tracking stock market data by date.
In fact, virtually all financial operations that require a current date reference point can benefit from the TODAY function.
Its automatic updating feature eliminates the need to manually input the current date each time you work on a document, which streamlines workflow and reduces the potential for human error.
In brief, it performs a critical role in simplifying and enhancing the accuracy of financial data management.
Explanation
The TODAY Excel Function is used mainly for its versatility in tracking, updating, and calculating dates. Its principal purpose is to deliver the current date every time the workbook opens, meaning it automatically updates daily.
This is especially valuable for finance professionals who need real-time, current date information in their spreadsheets for daily financial analyses or calculations like due dates, depreciation, aging of receivables, or identifying past-due amounts. Since it continuously refreshes, it saves users from manually updating the date, boosting efficiency and reducing the risk of input errors.
This function is also frequently employed in creating date-related functions for projecting future values or assessing historical data trends. For instance, in finance, users might couple the TODAY Function with other date functions to generate calculations for varying periods (e.g., 30-days, 90-days, or 1-year in future or past). Coupling the TODAY function with other Excel date functions can help with the effective analysis of investment performance, cash flow forecasting or balance sheet aging.
Therefore, the TODAY Function not only offers an accurate instant ‘snapshot’ of today’s date but, when used strategically, it can provide dynamic, valuable insights for financial planning and decision-making.
Examples of TODAY Excel Function (Today’s Date)
Project Management and Deadlines: A project manager can use the TODAY function in Excel to keep track of project timelines. If the start date of a project is entered into one cell, the TODAY function can be used in another to show the current date, and a third cell can calculate the number of days that have passed. This information can help track how much time is left until a deadline or if a milestone date is overdue.
Inventory Management: A supermarket or manufacturing firm can use the TODAY function in tracking inventory. For instance, the date when goods are received is recorded and the TODAY function can calculate the number of days those goods have been in stock. This can help in determining when to reorder or rotate goods to prevent spoilage or obsolescence.
Accrued Interest Calculation: In finance and investment, the TODAY function can be used to determine the accrued interest on a financial instrument like a bond or a certificate of deposit from its issuance or last interest payment date to today. By entering the last paid date in one cell, using the TODAY function to obtain the current date in another cell, the difference can be calculated to find the number of days interest has accrued. This helps investors and financial analysts to understand the performance of their investments over time.
FAQs for TODAY Excel Function (Today’s Date)
1. What is the TODAY Excel Function?
The TODAY Excel Function is a built-in date and time function that is used to provide the current date. The function does not require any arguments and it updates itself each time the worksheet is re-calculated or every time you open the worksheet.
2. How do I use the TODAY function in Excel?
To use the TODAY function in Excel, simply type “=TODAY()” into a cell. Press the ‘Enter’ key and Excel will put the current date into that cell.
3. Does the TODAY function update automatically?
Yes. The TODAY function updates automatically every time your workbook recalculates. This usually happens every time the workbook is opened or when a value affecting the formula changes.
4. Can I use the TODAY function in Excel to calculate age?
Yes, you can use the TODAY function in Excel to calculate age by subtracting the birth date from the current date.
5. Can the TODAY function be used with other Excel functions?
Yes, the TODAY function can be used in conjunction with other Excel functions like COUNTIF, SUMIF, or AVERAGEIF, to name a few. It is useful in many calculations such as calculating the number of days from a certain date to today’s date.
Related Entrepreneurship Terms
- Excel DATE Function: This Excel function is used to return the serial number of a specific date. It is often used alongside TODAY function to compare dates.
- Excel NOW Function: Like TODAY function, NOW function displays the current date and time as per the system’s clock. The main difference is that NOW also includes the present time, not just the date.
- Excel NETWORKDAYS Function: This function returns the number of whole working days between the start and end date, enabling users to calculate working days, factoring in weekends and optionally, holidays. Often used with TODAY function to calculate the number of working days until a certain date.
- Excel YEARFRAC Function: This function calculates the fraction of a year represented by the number of whole days between two dates. Combined with TODAY function, it can be used to calculate a person’s age or the duration since a particular event.
- Excel EDATE Function: This function is used to add or subtract specified number of months to/from a date. Combined with the TODAY function, it can be used to produce a date a certain number of months in the future or the past.
Sources for More Information
- Microsoft Support: This is official support page of Microsoft, where you can find detailed information about all Excel functions including TODAY.
- Excel Functions: This website offers insights and demonstrations of the use of many different Excel functions, including TODAY.
- Excel Easy: This site provides step-by-step guides for Excel functions and formulae. It is especially good for beginners who are learning the TODAY function.
- AbleBits: AbleBits has detailed tutorials and explainer articles relating to Excel and its functions, including TODAY.
