Few things are more closely associated with the world of treasury than spreadsheets. While they are a great way to organize data and track simple transactions, spreadsheets are not always the best solution for larger businesses with more complex accounting needs.
Since spreadsheets rely heavily on manual data entry, they are prone to error. Even the most reliable person doing data entry still makes the occasional mistake. Additionally, spreadsheets can quickly become undersized. A spreadsheet that is the right size for a small business can quickly become overtaxed as the business grows. Just adding more lines to a spreadsheet is not always the optimal solution, as spreadsheets can quickly become crowded.
Perhaps most important to the world of modern business, spreadsheets often make analysis difficult. Entering data into spreadsheets forces you to focus on the numbers to the exclusion of other things. In the modern business world, it is preferable to find a way to focus on data analysis.
Hi, my name is Jon and I run Compounding Pennies. I’ve been interested in personal finance since high school and love writing and talking about it. You can learn more about me in the Authors section of this site.