Spreadsheets run a great many successful businesses. The question is not whether spreadsheets are bad, but whether the way your business now works has outgrown them. This comparison sets out both sides.
Where spreadsheets are genuinely good
- You already have them, and everyone knows how to use them.
- Any layout or calculation is possible, and changes take minutes.
- For a small business with one person keeping the records, they can be enough.
Where they start to break down
- The same order or invoice is typed into several files.
- Several people edit copies, and nobody is sure which one is current.
- Stock, dues and accounts are kept in separate sheets that do not agree.
- Month-end and GST figures are rebuilt by hand every time.
Side by side
| Spreadsheets | ERP | |
|---|---|---|
| Cost to start | Low: usually already available | Subscription, plus time to set up |
| Flexibility | Any layout or formula | Works within the system’s workflows |
| Re-typing between steps | Common | Each document is built from the previous one |
| Stock accuracy | Depends on someone updating every sheet | Updated by each document as it is saved |
| Access control | Per file | Per role, screen and action |
| Month-end and GST | Rebuilt from several files | Reported from the same transactions |
When to stay on spreadsheets
If one person handles a modest number of orders, stock sits in one place and the accounts are done by an accountant from your sales and purchase lists, spreadsheets may still be the sensible choice. Revisit the question when any of the signs above appear.
The real cost of switching
- Setting up items, customers, suppliers and opening balances.
- Training the team and changing a few habits.
- A period of checking the new system against the old sheets.
- The software subscription itself.
Common questions
When should a business move from spreadsheets to an ERP?
When the same information is typed into several files, more than one person needs to update it at the same time, or stock, dues and accounts no longer agree without manual checking. Those are signs the business has outgrown spreadsheets.