Why Small Businesses Should Not Be Using Spreadsheets for Tracking Business Data

In many of our dealings with new clients, we hear from them that, “it is finally time to stop using the spreadsheet.” This article will detail some of the reasons why small businesses should not be using spreadsheets for tracking business data.

Spreadsheets are a common tool used by many small businesses to track and manage their data. However, while spreadsheets may seem like a convenient and cost-effective solution, they can actually cause more harm than good. Here are some reasons why small businesses should not be using spreadsheets for tracking business data:

• Time and labor intensive: Even with formulas, spreadsheets take a process and a keen eye to manage. This can be time-consuming and labor-intensive, taking away valuable time and resources from other important tasks.
• Prone to errors: Spreadsheets have a strong tendency to allow accounting errors. This can lead to inaccurate data and potentially costly mistakes.
• Lack of automation: One of the reasons spreadsheets fall to financial errors is their lack of automation. This means that data must be entered and updated manually, increasing the likelihood of errors and inconsistencies.
• Security flaws: Spreadsheets are notoriously unsecure. This means that sensitive business data can be easily accessed or compromised, putting your business at risk.
• Compliance complications: Spreadsheets are hard to track, which can cause further delays and issues during audits. For example, DCAA compliance requires a full history of who edited a record and who granted permission to do so.
• Data Loss: Unless your users are exptremely carefule it is very easy to delete or overwrite data in the spreadsheet and not realize it for months or years. Or, worse, delete the spreadsheet file!

JKW Software can help you “get off the spreadsheet” by design custom software, tailored specifically to your business needs and processes.