Is excel actually the problem, or is it how you’re using it?
Ever built a “quick” spreadsheet that somehow ended up tracking orders for three departments?
In this video, Mark explains why he still rates Excel, even after a career spent helping businesses move away from spreadsheet-based processes. It’s great for quick analysis, or for testing a scenario before you commit to a bigger system.
The trouble starts when that spreadsheet gets shared around and quietly becomes an operational system. Then the errors, version confusion and lost data creep in.
Use the right tool for the size of the problem.
Mark’s practical takeaway: use a spreadsheet for what it’s good at, such as quick analysis or modelling a scenario before scaling up to a proper system. Once several people depend on it daily, it’s time to look at a system built for that job.
Quick Takeaways
- Excel is well suited to quick analysis. It’s fast, flexible and doesn’t need setup time, which makes it ideal for one-off tasks
- Spreadsheets are useful for modelling a scenario before you invest in a larger system, letting you test an idea cheaply first
- The risk starts when a spreadsheet is shared. Once more than one person relies on it regularly, it starts behaving like an unofficial system, without the controls a real system has
- A shared spreadsheet used as an operational system is a common source of business risk, including version conflicts, lost updates and no clear audit trail
- Match the tool to the size of the problem. A small, single-user task suits a spreadsheet. A repeatable, multi-person process usually needs a proper system
- Deciding early saves rework later. Working out whether something is a “spreadsheet job” or a “system job” before you build it avoids having to unpick a messy process afterwards
Why excel still has a place in your business
Working out when to use a spreadsheet for business tasks, and when it’s time to move on, is something every growing company has to figure out. Here’s an admission that might surprise you: Mark Pullar, whose job involves helping businesses move away from messy spreadsheets, genuinely loves a good spreadsheet.
That’s not a contradiction. It comes down to using the right tool for the right job.
Excel has earned its place over decades for a reason. When you need a quick answer, some sharp analysis or a way to test an idea without building anything permanent, it’s hard to beat.
Should I use a spreadsheet to run my business?
A spreadsheet is a strong choice when you need to:
- Get a quick, “back of the envelope” answer to a business question
- Do a one-off piece of analysis that doesn’t need to be repeated
- Model a scenario before committing to a bigger investment, such as testing how a new process or pricing structure might work in practice
Used this way, a spreadsheet is a low-cost, low-risk step you take before building or buying something bigger.
Where spreadsheets stop working
The trouble starts the moment a spreadsheet stops being a personal tool and becomes a shared one.
If several people are opening the same file, updating it and relying on it to run part of the business, it’s no longer really a spreadsheet. It’s become an unofficial operational system, just without the structure, permissions or reliability that a proper system gives you.
That’s usually when problems appear:
- Multiple versions floating around, with no clear “master” copy
- Manual errors that are hard to spot until they’ve already caused a problem
- No real audit trail of who changed what, or when
- Growing dependence on one person who understands how the spreadsheet actually works
Once you’re at that point, it’s worth moving that process into a proper system, such as Microsoft Dynamics 365 Business Central, or a tool like AMS Grid if you want Excel-style flexibility with proper controls behind it.
When to use a spreadsheet vs a proper business system
A simple way to think about it: if a spreadsheet is being used to model or test something before a bigger decision, it’s doing its job well. If it’s become the way your team tracks live orders, stock, customer data or anything else the business depends on every day, it’s time to look at moving that process into a proper system, such as Microsoft Dynamics 365 Business Central.
Getting this right early on saves a lot of rework later. It’s far easier to design a system properly from the start than to unpick years of a spreadsheet that’s grown well beyond what it was built for.
The bottom line: use a spreadsheet for the right size of problem, and it’ll serve you well. Ask it to run part of your business permanently, and it’ll let you down.
Frequently asked questions
A spreadsheet works well for quick, one-off analysis or for modelling a scenario before you commit to something bigger, such as testing a new pricing structure. It’s a low-cost way to explore an idea. Once a task becomes repeatable and needs to run the same way every time, a proper system is usually a better fit.
Spreadsheets become risky once they’re shared and relied on by more than one person. Without built-in structure or permissions, it’s easy to end up with multiple versions, manual errors and no clear record of who changed what. What started as a quick fix ends up carrying more weight than it was designed for.
Yes. Excel remains useful for quick analysis and one-off tasks, even alongside a system like Dynamics 365. Business Central, for example, lets you export data to Excel or edit and publish changes back into the system, so you get the flexibility of a spreadsheet without it becoming a hidden operational process. You can find the full detail on how this works on Microsoft’s own documentation. So you get the flexibility of a spreadsheet without it turning into a hidden, unmanaged process.
A useful sign is dependency. If several people rely on the spreadsheet daily, if it holds live business data such as orders or stock, or if the business would struggle without it, it’s functioning as an operational system, whether it was designed to be one or not.
Common risks include version confusion when multiple copies exist, manual data entry errors, no audit trail of changes, and over-reliance on whoever built or understands the spreadsheet. These risks tend to grow quietly, which is why they’re often only noticed after something has gone wrong.
A sensible first step is identifying which spreadsheets are genuinely operational, meaning several people depend on them regularly, versus which are still one-off analysis tools. That distinction helps you prioritise where a proper system would reduce risk, rather than replacing every spreadsheet in the business at once.
Yes. Modelling a scenario in a spreadsheet first is a practical way to test assumptions, such as volumes or process changes, before investing in a larger system. It’s a low-risk way to sense-check an idea before committing budget and time to a full implementation.
Signs your spreadsheet has become a system
If you’re not sure whether a spreadsheet has quietly turned into an operational system, ask yourself these questions:
- Do more than one or two people update it regularly? A personal tool has one owner. A system has users.
- Would the business notice straight away if it broke or went missing? If losing the file would cause real disruption, it’s not just a spreadsheet any more.
- Does it hold live, current data rather than a snapshot for one-off analysis? Live orders, stock levels or customer records are a sign it’s doing a system’s job.
- Is there more than one version in circulation? Copies named “final”, “final v2” or “latest” are a strong clue that control has already slipped.
- Does one person “own” the knowledge of how it works? If only one person truly understands the formulas or macros, that’s a dependency, not a convenience.
- Has it grown well beyond its original purpose? Most risky spreadsheets started small and were never redesigned as their job got bigger.
- Is it used to make decisions, rather than just inform one? Once numbers from the sheet directly drive day-to-day actions, it’s carrying operational weight.
A simple rule of thumb: if you answered yes to two or more of these, it’s worth treating that spreadsheet as an operational system, and reviewing whether it’s still the right tool for the job.
About Mark Pullar
Mark Pullar is the founder of All My Systems, a Microsoft Dynamics 365 consultancy based in Hebden Bridge, West Yorkshire. He has 25 years’ experience in IT and senior management, holds an MSc in Information Systems Management, and is a Microsoft Certified Professional in Dynamics 365. Mark set up All My Systems in 2014 to bring proper business systems to small and medium sized companies, and he shares practical lessons on productivity and running a business along the way. Read more about Mark’s story and how All My Systems began.