What it means
A macro is a recorded or written set of instructions that the program carries out automatically. Instead of formatting a report by hand every month, an analyst can write a macro that does it with a single click.
The same approach can import data, refresh calculations, create charts and email results. The language is built into the software, so no separate installation is needed.
Users can record actions to generate basic code, then edit the code to add logic, such as loops that repeat steps for each row of data. Many finance professionals learn enough VBA to build tools for their own use.
The business case is time saving and consistency. A task that takes four hours a month by hand might run in a quarter of an hour, and the macro will carry out the steps the same way every time.
That reduces errors caused by tiredness or copying mistakes, and frees staff to analyse the results instead of preparing them. There are risks that finance leaders should manage.
A macro built by one person may be understood by nobody else, creating dependence on that individual, and an error in the code can run silently through thousands of rows. Macros can also be used to spread malicious software, so organisations often restrict which ones may run.
Good practice includes documenting what each macro does, testing it on known data, keeping copies under version control and storing the code in a controlled location. For larger or critical processes, many companies now prefer dedicated automation or reporting tools, though VBA remains common because it is available on almost every finance team's computer.
Alternatives and newer scripting options exist inside the same software, but a large number of existing models and reports still depend on VBA, so it remains a useful skill for finance professionals. Learning the basics takes a few weeks of practice and repays the time quickly.
In practice
Real-world examples.
Example
A financial analyst at a retail chain writes a macro that pulls sales from 40 store files, combines them and produces a summary chart. The weekly report that once took half a day now takes ten minutes. The analyst uses the saved time to look into why some stores are underperforming.
Example
An accounts payable team uses VBA to compare supplier invoices with purchase orders and highlight differences. The reviewer only has to look at the flagged lines, which reduces the time spent on routine matching. The team also keeps a log of the exceptions so that it can raise repeated problems with suppliers.
Example
A corporate finance manager inherits a valuation model driven by a macro written by a colleague who has left. She cannot understand the code, and decides to document it and test it with known inputs before relying on the results.
Formula
Calculation
Annual value of automation = (minutes saved per run x runs per year / 60) x hourly cost of staff time
A monthly reconciliation takes 240 minutes by hand, and a macro does it in 15 minutes. Minutes saved per run = 240 - 15 = 225. Over 12 runs a year, total minutes saved = 225 x 12 = 2,700, which is 2,700 / 60 = 45 hours. At a staff cost of $60 an hour, the annual value = 45 x 60 = $2,700. If building and testing the macro took 10 hours, costing 10 x 60 = $600, it pays for itself in the first year.Case study
Seen in the real world.
Ironbridge Insurance is an illustrative, fictional company whose finance team prepared a monthly management pack by copying numbers between 14 spreadsheets. The process took three analysts two full days, about 48 hours of work in total, and mistakes were common.
One analyst with some programming skill wrote a set of macros that gathered the data, checked totals against the ledger and produced the pack. The team spent 40 hours building and testing, and the process then took about two hours.
In this illustrative case, the team saved roughly 46 hours a month, but the finance director insisted on documentation and a second person trained to maintain the code. She also required that any change be tested against the previous month's figures before being used.
Watch out
Common mistakes.
- Letting one person build a critical macro without documentation, which leaves the business exposed when that person leaves.
- Trusting the output without testing the macro against figures that have been checked by hand.
- Enabling macros from unknown sources, which can allow malicious software to run on company computers.
Questions
People also ask.
Do I need to be a programmer to use VBA?
No, you can record simple macros without writing code, although learning a little programming allows you to build more flexible tools.
Is VBA still worth learning?
In many finance teams, yes, because so many existing models and reports depend on it, though newer tools are also worth knowing.
Can VBA work outside Excel?
Yes, it is also available in other Microsoft Office programs, and it can pass information between them.
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