Most accountants think dynamic arrays will solve all their Excel problems. They’re half right and that’s exactly the problem.
You’ve probably heard the hype. Microsoft’s dynamic arrays promise to revolutionise spreadsheet workflows by letting one formula populate multiple cells automatically. Sounds brilliant, right? But the reality is more complicated. While these functions deliver genuine efficiency gains, they’re creating headaches that many firms didn’t see coming.
Let’s break down what’s really happening with dynamic arrays and why getting this decision wrong could cost you more than time.
What Are Excel’s Dynamic Arrays Actually Doing?
Excel’s dynamic arrays let you use a single formula to return results across multiple cells at once. You write the formula once and Excel automatically fills the neighbouring cells with the results.
Consider the formula “=FILTER(A2:A100, B2:B100=”London”)” for instance. If column A contains customer names and column B contains cities, this formula instantly produces a list of every customer based in London. The results “spill” into the cells below, and the number of rows adjusts automatically to match how many entries there are.
This adaptability is especially useful when you work with variable datasets. Imagine importing monthly sales data where the number of rows changes each month. Before dynamic arrays, you had to manually extend formulas for new entries. It was easy to forget, leaving chunks of data uncalculated and creating gaps in reports.
With dynamic arrays, the formula grows or shrinks automatically, ensuring that every row is captured and nothing is overlooked. This makes your accounting workflows faster, more accurate and far less error-prone.
The Efficiency Promise
The productivity gains from dynamic arrays are real and measurable. Spreadsheets with memory-heavy models that used to slow down can now be dramatically faster when you rebuild them using these functions. Large financial models that once crawled become much easier to work with, saving you time and effort.
Take the Unique function as an example. In the past, identifying unique items in your dataset, such as isolating all cost categories in financial data, required multiple helper formulas and several steps. Now, a single dynamic array formula accomplishes the task instantly.
The Sort function delivers similar improvements. What once required complex formulas to rank or organise data can now be done with one simple formula, letting you focus on analysis rather than manual formula construction.
Of course, a question here would be: can’t we just use AI for all this?
But Here’s The Problem Nobody Talks About
Dynamic arrays are powerful, but their newness can create challenges that you need to be aware of.
The unfamiliar syntax may feel intimidating if you are used to traditional Excel formulas. That is only the surface issue. The deeper challenge lies in auditability.
Many standard audit tools you rely on simply do not work with dynamic arrays. The Evaluate Formula feature, which normally lets you break down calculations step-by-step, becomes ineffective when formulas populate multiple cells at once.
Because dynamic arrays fill multiple cells simultaneously, you cannot perform the detailed breakdown auditors expect. This limitation directly impacts financial modelling best practices, where transparency and auditability are essential.
If you are working with third-party auditors, the challenge grows. Without familiar reference points and debugging tools, it becomes difficult to follow logic and verify accuracy. Processes that should be straightforward can turn into time-consuming and complex tasks.
The Smart Way Forward
You can adopt a measured approach that captures the benefits of dynamic arrays without creating audit challenges. Instead of packing complex logic into single formulas, you can break calculations into simpler, separate stages. This way, you maintain efficiency while keeping the clarity auditors and colleagues need.
If you are serious about transitioning, it makes sense to maintain dual systems temporarily. Build a “shadow model” with traditional formulas to serve as a testing benchmark. This lets you verify that your dynamic array model produces identical results.
Using this parallel approach gives you security and confidence. You get to use the efficient new model for daily work while keeping the traditional version available for validation and audit purposes.
But perhaps the smartest way, at least if you’re quoting prices and such, is to use FigsFlow and its advance pricing calculator that gives you accurate figures accurately.
Conclusion
Dynamic arrays aren’t going away, and the efficiency gains are real. But rushing into adoption without understanding the trade-offs can cost you later.
These functions are already changing financial modelling. The real question is whether your firm can adopt them wisely while keeping audits and transparency intact.
Use dynamic arrays where they truly help, but don’t let marketing convince you that newer automatically means better. Sometimes the old way works for a reason.
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