By Jenny Baynes, Operations Coordinator for Winning Solutions, Inc.

Microsoft Excel is a spreadsheet software with an estimated 1.2 billion users across a wide range of industries. First released in 1982, the software has been enhanced throughout the decades and is renowned as an essential tool for business. The software allows users to enter, store, and organize basic data, with additional functions to simplify complex tasks. Simply put, Excel was, is, and continues to be the official spreadsheet of the people. - Thank you, Microsoft! (Keep in mind that what you are about to read also applies to all spreadsheet software such as Apple's Numbers, Google's Sheets, Open Office's Calc, etc.)

While Excel is clearly king among spreadsheets, it is not a true relational database. Despite this fact, users far and wide often try to force Excel to function like a database, which could be compared to eating soup with a fork. When a true database is needed, Excel is not the right tool for the job. Furthermore, forcing the Excel "fork" into the hands of users desperate to make the most of their data "soup" comes with considerable frustration, shortfalls, and risks, that often negatively impact businesses. So, what are the risks of attempting to use Excel in place of a database?

Input Errors

Most people think that because they use Excel every day, they are really good at it. Which is kind of like saying, "I push buttons on my microwave every single day to cook my meals, therefore, I'm a really good chef." The reality is that most individuals using Excel have had very little training and are using a good old-fashioned internet search to find out how to get Excel to do what they need it to do. While that type of creativity is admired, it's also fraught with danger. Just one minor input error can massively alter the intended values on a spreadsheet, and often these errors are not found for months or even years.

It's no wonder that the European Spreadsheet Risks Interest Group research indicates that more than 90% of spreadsheets contain errors. The result of errors can be disastrous and extremely costly for a company. Real-life examples include businesses that lost millions or even billions of dollars because of a copy-and-paste error, a typo, or a formatting issue.

Version Confusion

Data is one of the most important assets of a company, but the integrity of that data can become compromised when there are several copies of the same file in the hands of different people. While file sharing may assist with versioning difficulties, Excel is primarily designed for single-user applications. When sharing Excel sheets, users are notorious for mistakenly overwriting the work of others, thereby compromising data unintentionally.

Reduced Performance & Reduced Efficiency

As the amount of data volume increases, Excel becomes more problematic and slows down. Using an Excel that is approaching its technical limits is like using a manual screwdriver versus an electric screwdriver. Data becomes slower to open, slower to manipulate, and slower to save. All of the increased effort and time spent on unwieldy Excel files reduces employee productivity and increases the risk of mistakes.

Storage Restrictions

While Excel is suitable for smaller datasets, it is not designed for handling large volumes of data. Depending upon the Excel format being used, storage capacity can be very limited. This issue became a big problem in 2020 when developers in the UK used XLS files to handle Covid-19 testing data. The files containing coronavirus case data were unknowingly limited to 65,000 rows of data, thereby causing nearly 16,000 cases to go unreported. The result? Thousands of individuals were unaware they had been exposed and were spreading the virus at a time when thousands were already dying.

Clearly, Excel is not the right tool for every job, but how can you know for sure when it's time to consider using a database?

Data Complexity

Excel is great for relatively simple data, basic calculations, and lists. Once data becomes complex with relationships between multiple data types, it's time for a database.

Data Volume & Scalability

Small sets of data that can comfortably be managed in a single workbook are well suited to Excel. However, once data grows to large volumes and is interconnected, it needs to be in a database to be handled efficiently. Even if data is not large to begin with, companies that expect data to grow significantly should start with a database since it can scale with the needs of the business.

Data Integrity

Databases offer protection against data entry errors by means of data validation, constraints, and relationships. This ensures the data remains accurate and consistent. If your company relies on accurate data to make accurate decisions, a database should absolutely be considered.

Collaboration

Unlike Excel, databases are designed for multi-user access and support concurrent data entry. If you have a team of individuals who all need access to the same quality data, a database is the right tool for the job.

Security

While Excel files can be password protected, managing access control can be very challenging. Databases offer enhanced security, which is critical when handling sensitive or regulated data.

Automation & Efficiency

Data is most useful when it can be processed into meaningful, digestible information. Databases allow for the automation of data processing tasks, thereby increasing the overall efficiency of a business.

In summary, while we can all applaud the benefits of Excel within the workplace, we have to understand that it is not always the right tool for the job. We don't eat soup with a fork and shouldn't use Excel as a database.

Are you ready to start exploring what is possible with the power of a database? Visit our website at MicrosoftAccessExpert.com to schedule a meeting with one of our highly qualified representatives. Winning Solutions, Inc. also offers Excel support and programming services.