Example Use Case: Budget Planning for a Company
A company prepares its budgeting plans on a quarterly basis. However, within each quarter, the company also has to set aside specific funds at the end of each month for certain mandatory expenses. Here’s how the EOMONTH function can be utilized in this context:
1. Determining Employee Bonus Allocation
Employees are given bonuses at the end of every quarter. To prepare for this, the financial analyst wants to know the exact end date of the month, 3 months from the current date, which denotes the end of the quarter.
If today’s date, for example, is “15-January-2024”, the formula in Excel would be:
=EOMONTH (TODAY(), 3)
Output:
45412 which represents 30 April 2024
2. Evaluating Quarterly Rent Payments
The company pays rent for its office spaces at the end of every quarter. The accounts department needs to know the last date of the month, 3 months prior, to ensure they’ve accounted for the past quarter’s rent.
Assuming today’s date is “15-April-2024”, the formula would be:
=EOMONTH (TODAY(), -3)
Output:
45230 which represents 30 October 2023
3. Year End Closing
The company closes its financial books annually. To know the exact end date of the current financial year, the analyst can use the formula:
If the financial year starts from “1 April 2023”, the formula would be:
=EOMONTH(DATE(2023, 4, 1), 12)
Output:
45412 which represents 30 April 2024
Using MONTH and EOMONTH functions in Excel
In this easy-to-follow guide, we’ll explore the Excel MONTH and EOMONTH functions. These functions are super handy for working with dates. We’ll show you how to use them to figure out which month a date belongs to, get the first and last day of a month, and more. Whether you’re new to Excel or an experienced user, this tutorial will help you become a pro at handling dates in your spreadsheets. By the end, you’ll be able to breeze through date-related tasks and make your Excel work even smoother. So, let’s dive in and master these functions together!
MONTH and EOMONTH are built-in functions in Excel that assist users in performing date-based operations, particularly those tied to months. Let’s delve into each function and see how they can be useful: