Excel is an excellent tool for processing data, but it has its limitations. When you have overly complicated formulas, or if your computer crashes when opening an Excel file, then maybe you should consider using a different file format.
So, what are the use cases for which you should consider different software? Here are a few situations where you should use another app.
1. Massive Databases
If you’re not well-versed in computers, you might probably think that Excel (or Google Sheets) is the only way to store data. After all, the latest versions of Excel have 16,384 columns and 1,048,576 rows, totaling a whopping 17,179,869,184 cells.
While this is a lot of information, you should be aware that your computer will load all of it at once. Therefore, if you're using a lot of cells, you can expect your PC to run slowly. Having a hundred, or even a thousand, rows won't be a problem.
However, if you keep compiling data over the years, or if you have multiple users adding information to one file, even powerful computers will struggle to load it. This is because Microsoft loads all the data when it opens the file.
Although this is useful for analyzing short-term data, it wastes computing power if you only need to analyze specific information. For example, if you need a customer’s email address, you don’t need to load all the rest of your client database.
A good alternative for storing data is to use dedicated database software or service. They offer the same features as Excel, such as data analytics, but with even more functionality. You can use Microsoft Access if you're a fan of the Microsoft Suite. Other alternatives include LibreOffice Base and others.
2. Complex Data Analysis
Microsoft Excel has a significant number of available formulas. It offers the simplest sum formula to complicated functions such as net present value (computes for the time value of money) and forecast (used to calculate future values).
However, if you find yourself making multiple, complicated functions, it’s high time you consider other solutions. Excel is an excellent tool if your formula’s variables are all based on raw data. But if you find your functions are based on cells that are formulas themselves, consider using dedicated analytics software.
If your spreadsheets rely on multiple formulas, the added layer of complexity means it’s easy for errors to go undetected. And even if you do find errors, it isn't easy to trace them if your formulas are three lines long.
Instead of using Excel for complicated scenarios, try learning a programming language like Python. It’s easy to understand, and there are several free resources to get you started on it. And if you’re not inclined to study programming, you could also use dedicated data analytics tools that are much easier to use.
3. Project Management
Before the advent of dedicated project management tools like Asana and Trello, many professionals used Microsoft Excel. After all, it’s easy to set up. There are even templates you can download to help get you started.
But as soon as your team grows—or you start to get more projects—things get complicated. Unless you’re using the online version of Excel, your team can’t use your project management file simultaneously. And when you add more tasks and subtasks, you might end up with too much information in one sheet.
Furthermore, as more people have access to the file, there’s a greater chance for an unintended mix-up. They might inadvertently change a formula or even delete crucial information. Creating and assigning project dependencies can also get confusing.
That’s why it’s best to get a dedicated task management app for managing your team. Purpose-made apps will allow you and your team to get a clear view of everything that needs doing. You can even assign tasks to specific members so that nothing gets overlooked.
And if you’re on a budget, you could find free project management tools online. Now you can keep everyone on the same page without having to spend a dime.
4. Forms
Because of its easy availability, Excel is often used as a form. There have been many instances where events and gatherings have used laptops and Excel files for guest registration.
Using Excel (or any spreadsheet) as a form is convenient because the organizers can directly analyze their data. However, this comes with several drawbacks.
- First, you would have no control over the data input. Anyone could type in incorrect information, and you would be none the wiser. There’s also no data standardization. A person could type in New York under state, while another would write NY. This is problematic during data analysis.
- Secondly, if you have multiple registration sites, you would have separate datasets that require consolidation. This takes time and could introduce errors in your data. This could also lead to duplication of effort since users may enter their data twice.
- Third, there is no data privacy. If you use a spreadsheet, anyone can scroll through the entries and gather data. They could even alter existing information, which will skew your data. If a data leak occurs through your Excel registration, you could be held liable.
- Lastly, if you are going to use Excel for online registration, it's not suitable for large databases, as already stated.
5. Financial Data Analysis
When you’re using Excel to track financial data, chances are you have to link to multiple sources. These sources can be other Excel files, online databases, and even financial websites. However, as you’re adding these, the chances of introducing an error, or getting outdated information, increase.
There has even been an incident at J.P. Morgan way back in 2012, where a formula accidentally used price sums instead of their average when computing for risk. This, in turn, gave a result about two magnitudes lower than the actual value and caused the bank to lose $6 billion in trading.
While other issues are involved, this miswritten formula is part of the cascade of errors that led to this massive loss.
Use Dedicated Software
Microsoft Excel is an excellent spreadsheet. It's great for small data sets or if you're trying it out as a proof of concept. But if you want to scale your work, you should consider dedicated software.
Using software developed specifically for your purpose will give you better functionality, work faster, and allow you to get things done more efficiently. Although some of them will cost time or money (or both) to set up, it will save you money in the long run.
0 Comments