The Disadvantages of Spreadsheets
Electronic spreadsheets have revolutionized everyday business accounting, but they have disadvantages worth considering. Users often set up spreadsheets as databases, not realizing that spreadsheets work poorly in that capacity. Spreadsheets typically grow in complexity over time and accumulate errors; it takes deliberate and careful work to find these problems. Anyone with a computer can alter a spreadsheet; the program doesn't track these changes, making the information less than completely trustworthy.
Not a Database
Spreadsheets have a row-and-column format very similar to a table in a database, but they are not suited to storing large amounts of information or managing it as effectively as a database. You can easily set up a spreadsheet to organize simple customer lists, inventory and other data tables. Though handy for up to a few hundred items, a spreadsheet becomes cumbersome for thousands or more. Databases not only accommodate nearly any number records, but also they connect individual data sets into more useful combinations.
No Audit Trail
Audit trails are an important means of preserving the integrity of data; however, a spreadsheet program does not have audit trails for data or formulas. It simply updates the file with new information. Although several people may have had a hand in creating a spreadsheet, you cannot 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.
Decades ago, computer specialists adopted the phrase, "Garbage In, Garbage Out," because the machines executed every program faithfully whether it was well-written or not. The notion applies to spreadsheets as well, as they are a form of computer programming. A finished spreadsheet may appear attractive and convincing but can be riddled with errors. Spreadsheet users must take care to check their formulas and use data from appropriate sources.
It takes mathematical aptitude and careful work to create a good spreadsheet. A clerk may be comfortable entering numbers into a spreadsheet file, but he may not have the ability to develop formulas or macros. Beneath the simplicity of the spreadsheet's layout lies a complex set of rules that some users may find intimidating. Those not already exposed to programming concepts such as functions face a stiff learning curve before they develop competence with developing their own spreadsheets.
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