Excel is a wonderful tool for planning and accounting that is used despite the availability of various specialized software. The main advantages include such vital features that cannot be displaced by their counterparts.
For instance, all the links between data are perfectly visible and can be easily tracked, there are a huge number of built-in functions, users can create their own special functions, save them and then use them in other documents. However, even such a flexible tool has its drawbacks.
Inability of processing of fragmented datasets
To get a data array filtered by several parameters, users should first prepare a complex database from which the necessary arrays can be filtered. It does not matter where the database can be stored either in the same file, or maybe in another one, but the final result has to be associated with it. However, the amount of data can be rather large and can affect the speed of data handling. As a result, the user has to divide the database into different files.
The need for extra training to use all of the toolkit
There is a lot to learn here too. Excel provides a wide range of formulas and toolkit, but without special training, the user will be able to use only basic capabilities and simplified filtering. Working with limited skills will lead to the risks of an increase in manual data processing.
Impossibility of prompt distribution of changes
Imagine that you have changed the accounting or planning methodology in your company. For example, one of the cost items should now be part of another classification. In Excel, it is not enough to make a replacement in only one place, it will probably be necessary to make a complete double-check for all files and correct a lot of formulas. And all of this work has to be done manually.
Complexity of development a system of tables and links
Since the possibilities of Excel are not so broad, it may be necessary to create extra files that will help to transform one data form into another. This is especially important in accounting when it is necessary to transform reports formed according to national standards to international reporting standards.
Unable to control information entered by other employees
Unfortunately, the tracking of changes in Excel is limited, so it is impossible to correctly track which employee at what stage made the amendments.
Mistakes
Since a lot of data is entered and linked by formulas that are built manually, the possibility of a simple human error should be considered.
Complexity of utilizing in companies with a branched structure
If a company has several branches, departments for which planning and accounting are required, then maintaining information in Excel will be a very time-consuming task. Part of the filling files will always be done with adjustments due to the specifics of the processes in a particular unit. All these adjustments will need to be considered manually, since the system will not be able to allocate atypical data to the appropriate fields on its own.