While Excel is renowned for its versatility in calculations and data visualization, it can also do the job just fine as a database. Small businesses, non-profits, and even departments within larger organizations sometimes rely on Excel to store, manage, and analyze their crucial data. But is this really the right tool for the job?
In this post, I will discuss the pros and cons of using Excel as a database. That way, you can consider whether Excel is a viable option or whether you should consider a more robust solution.
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Advantages of using Excel as a database
Accessibility and familiarity
Let's go over the top advantages of using Excel as a database. Most computers already have Excel installed as part of the Microsoft Office suite. You don't need to go through the hassle of buying, installing, or setting up new software on your device. You can't rule out its familiarity, either.
Excel's interface is user-friendly and widely recognized. Those with limited computer skills can often perform basic tasks like data entry, sorting, and filtering. The basic tasks like creating tables, performing simple calculations, and generating charts are straightforward to learn.
Data visualization and manipulation
Data visualization and manipulation are two major reasons why people prefer Excel for data management. You can pick from a wide array of charts to represent your data in visually compelling ways. You can even customize them extensively by tweaking colors, labels, axes, and other parts.
Other interactive features include slicers and timelines, PivotCharts, conditional formatting, and more. As for data manipulation, you can view and organize data based on specific criteria, explore a vast library of formulas and functions, and even use data-cleaning tools to present your database professionally.
Ideal for small databases
Small businesses and startups often operate on tight budgets. Since most companies already have a Microsoft 365 subscription, they don't need to shell out extra for Excel. It basically eliminates the need for expensive database software or IT infrastructure.
Besides, small businesses often deal with smaller datasets, which Excel can handle efficiently without performance issues. The software's built-in features are sufficient for common tasks like tracking inventory, managing customer lists, and creating basic financial reports. It also integrates well with other common software, like accounting packages or CRM systems.
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Cons of using Excel as a database
Limited security
Before you fully embrace Excel as a database tool, make sure to keep the following cons in mind. Security is a critical weakness when relying on Excel for anything beyond basic data management. Excel offers rudimentary password protection but lacks granular control over user access. After all, everyone with the password has full access to view, edit, and even delete the entire file.
Unlike dedicated database tools, there is no built-in mechanism for robust user authentication. It isn't easy to verify the identity of individuals accessing the data. It also has limited tracking capabilities, which makes it difficult to monitor who made what changes and when.
Lacks data management features
Excel doesn't offer true tables, which are often ideal for complex data structures with interconnected entities. At times, you will often end up duplicating data across different spreadsheets. It will lead to inconsistencies, increased file size, and difficulties in updating information.
While Excel allows basic filtering and sorting, it lacks the power and flexibility of a query language like SQL (Structured Query Language) used in databases. Overall, Excel excels (no pun intended) at basic tasks but lacks the robustness, scalability, and advanced features required to manage complex data effectively.
Limited automation
Although Excel offers several automation tricks, they are often limited in scope and complexity. Besides, not everyone has programming knowledge. Complex macros can be challenging to write, debug, and maintain. Besides, integrating Excel with other systems or applications for automated data exchange is challenging and requires custom solutions.
Difficult to maintain
As your business grows, your database becomes larger, and more people get involved. After a while, maintaining and collaborating in Excel becomes a real headache. Even with careful data validation, errors can easily creep in.
When you have shared an Excel file with multiple users, tracking changes and managing different versions of an Excel file can be a nightmare. After all, it's nowhere near Google Sheets regarding smooth collaboration.
Don't let Excel hold your data hostage
Ultimately, the decision of whether or not to use Excel as a database depends on your specific needs and circumstances. For simple data management tasks, personal use, or small datasets, Excel can be a perfectly adequate tool. However, as your data grows, becomes more complex, and requires advanced features, you should factor in limitations before going all in with Excel.
If you are new to Excel, check out the top hacks to level up your skills.