Pro Tips for Merging Excel Workbooks Into One

In the fast-moving world of financial analysis and investment banking, efficiently gathering and organizing data is essential. You will often deal with multiple data sets in Excel workbooks as a financial analyst. Combining the workbooks into one file can save time and reduce mistakes. 

However, merging Excel workbooks comes with its own set of challenges. Ensuring data accuracy, preserving financial metrics, and managing large datasets can be overwhelming, especially when dealing with critical financial information. This blog post will share tips and techniques for merging Excel workbooks, in addition to a step-by-step guide.

Essential Preparation Before Merging

Before diving into the merging process, laying the groundwork for a successful consolidation is crucial. Here are two key steps to ensure a smooth and error-free merge:

Data Backup: In finance, data is everything. Before embarking on any data consolidation project, secure your data by creating backups of all the workbooks. It safeguards against unforeseen issues during the merge process, ensuring you can always revert to the original data if needed.

Data Consistency: Consistency is key when merging financial data. Review your workbooks and ensure that all financial metrics, such as revenue, profit margins, and market caps, are uniformly formatted. It may involve converting currencies, aligning decimal places, or standardizing date formats. By establishing consistency upfront, you’ll prevent errors and discrepancies in your consolidated dataset.

Reviewing Data Structure: Before merging, it’s essential to audit the structure of your workbooks for compatibility. Pay close attention to the standard fields used in financial analysis, such as company names, ticker symbols, and economic periods. Ensure the fields are consistently named and formatted across all workbooks to facilitate a seamless merge.

Introducing the Sample Dataset

To help explain how merging works, let’s look at a sample dataset of financial metrics from different companies. The information is divided between two workbooks: 

1. Workbook1.xlsx details revenue, profit margins, and market capitalization for companies A, B, C, and D. 
2. Workbook2.xlsx contains the exact details for companies E, F, G, and H. 

The above workbooks can serve as sample data sources that an investment banker might need to combine for a thorough analysis. 

Download Excel Template

How to Merge Excel Workbooks Into One

Below, we list the different methods for merging workbooks in Excel:

Method 1: Manual Merging

One approach to merging Excel workbooks is to do it manually. Although time-consuming, the manual method offers precise control over consolidation.

Here is a simple guide to follow:

Step 1: Open a new blank workbook for your main file.

Step 2: In the file, make a column for each financial metric.

Step 3: Open ‘Workbook1’.

Step 4: Copy everything from the ‘Workbook1’ sheet.

Step 5: Go back and paste it into the new worksheet.

Step 6: Next, do the same with ‘Workbook2‘.

Step 7: Make sure the data is formatted right.

While manual merging can be tedious, it allows you to thoroughly review the data during the consolidation process, ensuring accuracy and catching any potential issues.

Method 2: Using Excel’s Built-in Feature

Microsoft Excel offers a built-in feature that can streamline the merging process. The Consolidate function. The Consolidate feature enables you to merge information from various worksheets or workbooks into one location. 

Here’s a simple guide on how to use the Consolidate function in Excel: 

Step 1: Start by opening a new sheet in your main file and add the rows.

Step 2: Go to the ‘Data’ tab and hit ‘Consolidate’.

Step 3: In the box, pick the consolidation function you need (e.g., ‘Sum’ for adding financial metrics).

Step 4: Hit ‘Reference’,

Step 5: Choose the first workbook,

Step 6: Select data, then ‘Add’ and click ‘OK’.

Step 7: Do Step 4 for each workbook you’re consolidating.

The Consolidate function will create a new table with the consolidated data, automatically summing up the financial metrics from the selected workbooks.

Method 3: Using Excel’s Power Query

Power Query is a powerful data transformation and integration tool built into Excel. It is an excellent tool with a user-friendly interface for combining financial data from multiple sources. 

Here’s how to use Power Query for merging:

Step 1: Open a new workbook and navigate to the ‘Data’ tab in the ribbon.

Step 2: Click on ‘Get Data’ and select ‘From File’ > ‘From Workbook’.

Step 3: Browse and select the Workbook 1.

Step 4: Select the financial data sheets in the Navigator window and click ‘Transform Data’.

Step 5: In the Power Query Editor, select ‘Append Queries’ from the ‘Home’ tab to combine the chosen sheets into a single table.

Step 6: Click ‘Close & Load’ to load the merged data into a new worksheet.

Step 7: Repeat steps 2-6 for Workbook2, appending its data to the existing table.

Power Query simplifies the merging process and provides a range of transformative functions to clean, reshape, and optimize your financial data. Its ability to handle complex datasets and automate repetitive tasks makes it a valuable tool for finance professionals.

Method 4: VBA Macros for Advanced Automation

For those with programming experience, VBA macros offer a powerful way to automate the merging process. By writing custom scripts, you can tailor the consolidation to your needs and handle complex data structures. 

Here’s a sample macro that automatically merges financial data from multiple workbooks:

Sub MergeWorkbooks()

    Dim mergeWb As Workbook

    Dim sourceWb As Workbook

    Dim ws As Worksheet

    Set mergeWb = ThisWorkbook

    For Each ws In mergeWb.Worksheets

        ws.UsedRange.ClearContents

    Next ws

    Dim filePath As String

    filePath = “C:\Finance\Data\”

    Dim fileName As String

    fileName = Dir(filePath & “*.xlsx”)

    Do While fileName <> “”

        Set sourceWb = Workbooks.Open(filePath & fileName)

        For Each ws In sourceWb.Worksheets

            ws.UsedRange.Copy mergeWb.Sheets(ws.Name).Range(“A1”)

        Next ws

        sourceWb.Close False

        fileName = Dir()

    Loop

    MsgBox “Workbooks merged successfully!”

End Sub

Save the file as a Macro-Enabled File (.xlsm) and re-open the Workbook. 

Press ‘ALT+F8’ to run the macro.

The following macro performs the following tasks: 

1. It empties the master workbook’s sheets.
2. It spots where the source books live.
3. It goes through all Excel files in that spot.
4. It opens each one, grabs the data, and puts it in the master book.
5. It shuts the sourcebook without saving it.
6. Keep going until it’s done with all the books in the folder.

You can automate the merging process using VBA macros, saving time and reducing the risk of manual errors. However, macro security in financial environments is essential, and your code must be thoroughly tested and approved before deployment.

Best Practices and Tips

To ensure a successful and efficient merging process, consider the following best practices and tips:

Data Validation Post-Merge: After consolidating your financial data, it’s crucial to validate the accuracy and integrity of the merged dataset. Here are some strategies:

• Spot-check critical financial metrics and totals against the source workbooks to ensure accuracy.
• Use Excel’s built-in data validation tools to identify and highlight any discrepancies or anomalies.
• Create summary tables and charts to inspect the consolidated data for consistency and reasonability visually.

Optimizing Performance: Performance can become a concern when working with large financial datasets. To ensure swift data processing and prevent slowdowns:

• Use Excel’s ‘Manual’ calculation mode when performing complex merges or running macros.
• Break down the merging process into smaller, manageable steps to avoid overwhelming Excel’s memory.
• Consider using external data processing tools or databases for massive datasets.
• Regularly clean and optimize your Excel files by removing unused data, formulas, and formatting.

Using Macabacus to Merge Workbooks

To further enhance your efficiency, Macabacus offers a Merge Workbook tool, which enables you to consolidate sheets from various workbooks into one single workbook. Additionally, you can opt to rename the sheets in the combined workbook as per your liking. You can find the tool under the ‘Macabacus > File’ menu.

Conclusion

Merging Excel workbooks is an essential skill for finance professionals, enabling efficient data consolidation and streamlined analysis. You can tackle even the most complex merging tasks by understanding the various methods, tools, and best practices discussed in this post.

Start with thorough preparation to ensure data consistency and structural compatibility. Explore Excel’s built-in features like the Consolidate function and 3D references for quick and easy merging. For more advanced needs, Power Query and VBA macros can be invaluable for automating processes and handling complex data structures.

After merging, always take the time to validate your data and optimize performance to ensure accurate and efficient analysis. Enhancing your productivity in the fast-paced world of finance often means leveraging the right tools for the job. Consider using Macabacus to streamline your Excel workbook tasks and improve overall document consistency and collaboration across your team.

Trusted by finance professionals globally, Macabacus ensures you spend less time on routine tasks and more on strategic analysis. With these pro tips and the right tools, merging Excel workbooks becomes a more manageable and influential part of your financial toolkit.