Spreadsheet or software: which tool to use for business management?

The success of any business is closely linked to good management, which, in turn, depends on the competence and skill of the human resources involved and the tools used to manage the establishment. It is in this context that one of the main questions entrepreneurs face arises: what is the best tool to use to manage their business? The main choice is between using a spreadsheet or software.

First of all, you need to understand each option better and weigh the pros and cons based on your business's specific needs. But don't worry, we'll help. Read on to learn more about each type of tool, as well as their advantages and disadvantages.

What is the difference between using a spreadsheet or software to manage your business?

Spreadsheets are tools that have long been used to organize and record all of a business's data: financial information, sales, customers, inventory, etc. They consist of rows and columns for data entry and are available in programs like Excel or similar.

Some of the uses of spreadsheets include the ability to perform complex calculations, generate graphs or diagrams, or simply record a simple database with lists.

Software is a management system created specifically for business management, with the aim of facilitate all processes company management tools. They rely on tools that help organize data, including spreadsheets and other tools for personnel and financial management, among others.

One of the main differences between these tools is that spreadsheet data is entered manually, meaning the person collects and inputs the information. Software, on the other hand, uses automation technology in which the system itself "pulls" information from a purchase or payment, for example, and includes it in the database.

Now that you better understand the difference between the two tools, let's talk about the pros and cons of each.

What are the advantages and disadvantages of a spreadsheet?

As mentioned, spreadsheets have been used for a long time, and many business owners still find them very useful and beneficial. Their advantages include:

• does not require implementation costs, as it is done using common computer programs or even manually;
• greater ease of use, since the employees they usually already know the programs used;
• offline operation, that is, it does not depend on an internet server.

On the other hand, the disadvantages are:

• some people do not find it easy to use spreadsheets, which, in many cases, require the use of complex formulas;
• difficulty in analyzing spreadsheets, especially over long periods of time;
• as they are computer files, they can be heavy and slow to use;
• greater risk of losing information stored on the computer.

What are the advantages and disadvantages of the software?

Management software, like spreadsheets, has advantages and disadvantages, which we'll outline below. The advantages are:

• possibility of simultaneous access, that is, more than one person can view the data at the same time;
• greater control of processes, as information is automatically recorded;
• increased productivity in the business, as several processes are automated and it is easier to find information within the system;
• great flexibility, being able to change according to the company's needs;
• greater security in data storage.

The disadvantages are:

• higher implementation cost;
• need for staff training to handle the software;
• need to hire a specialized team to maintain the system;
• Many software programs depend on the internet to function.

The choice between spreadsheets and software should be made according to the needs and characteristics of each company. You need to choose the option that guarantees the greatest competitive advantage for your business.

So, did you like the text? Want to read more about business management? Then stay on the site and read our post about challenges in people management!