The two disadvantages of using Excel spreadsheets exposed
In this article, we gave you the three benefits of using Excel spreadsheets if you're an accountant.
Now there's no denying that Excel spreadsheets have changed the 'accounting game', but we believe you should consider some of the disadvantages they come with.
Disadvantage #1: Excel spreadsheets are NOT a database
According to Az Central, users often set up spreadsheets as databases, not realising that spreadsheets work poorly in that capacity.
Excel spreadsheets have a row-and-column format very similar to a table in a database, but they're not suited to storing large amounts of information or managing it as effectively as a database.
While Excel spreadsheets are handy for up to a few hundred items, a spreadsheet becomes cumbersome for thousands or more.
#2: Excel spreadsheets do NOT provide an audit trail
As you know, audit trails are an important means of preserving the integrity of data. But the downside is that a spreadsheet programme doesn't have audit trails for data or formulas. It simply updates the file with new information.
The site adds that that 'although several people may have had a hand in creating a spreadsheet, you can't identify who worked on specific parts just by looking at it. The file has a modify date, but doesn't tell you the history of specific items within the spreadsheet.'
What's the verdict on Excel spreadsheets?
Everything has its pros and cons and, as with everything in life, you must be cautions. Giving you the good and the bad regarding Excel spreadsheets will help you make an informed decision.
'Spreadsheet users must take care to check their formulas and use data from appropriate sources,' says Az Central.
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