The Cost and Risks of Running Your Business on Spreadsheets

4 minute read

The Cost and Risks of Running Your Business on Spreadsheets

Many organizations opt to use spreadsheets when managing their business operations due to the familiarity and versatility they offer, not to mention the fact that they are free and easily accessible on any computer. However, it’s important to note that while spreadsheets may be a viable option for small businesses looking to cut costs, they may not be the best long-term solution and do more damage to your businesss operations than good.

While spreadsheets can provide efficient tracking of financial data, they can also become a liability for businesses. From accounting to customer records, relying solely on spreadsheets can pose serious risks, which is why it’s important to explore other options for effective business management.

In the modern age of efficiency, it’s troubling to learn that many businesses worldwide still rely on spreadsheets to manage their operations. Despite recognizing the inefficiencies and loss of productivity that come with these manual methods, some companies continue to resist change. This leads to hours of needless re-keying of information, causing unnecessary costs and overloading their team. It’s crucial to embrace technology and streamline processes to remain competitive in today’s fast-paced business world.

Outdated and tedious procedures can result in hefty concealed expenses that often go unnoticed. Business owners and executives may become satisfied with their routines, causing them to overlook the negative impact their procedures might have on their ability to execute projects successfully. This irony often leads to inadequate project management, inaction, errors, and an endless cycle of problem-solving.

Running a business in spreadsheets can be detrimental to your growth potential. Despite seeming cost-effective at first glance, relying on separate spreadsheets for every transaction leads to errors, long lead times, duplicate data entry, lack of transparency, and ultimately poor customer experiences. Investing in proper operations infrastructure may seem daunting, but it could ultimately save more than it costs, and allow for streamlined processes that unlock financial success.

Discovering the Direct Costs of Your Business Operations

Running a business involves several types of costs, both direct and indirect, as well as realized and unrealized. These different costs can sometimes be challenging to identify and accurately track. Often, indirect or unrealized costs can be overlooked, leaving you with a distorted view of your expenses.

To help you gain clarity and better insight into your financial situation, we’ll examine some of the direct costs associated with business operations. By understanding these costs, you can make more informed decisions and take control of your business’s finances.

These are a few common pitfalls businesses face when relying on spreadsheets to manage their operations.

Difficulty Finding Information

Sifting through various spreadsheets to find important customer information can be a time-consuming and frustrating task for employees. This is especially true when historical data needs to be reviewed. To find what they need, users often have to open multiple records, further elongating the process.

Lack of Reporting

Spreadsheets may be hindering your business from processing large amounts of data and generating routine reports efficiently.

Too Much Double-Entry

Tedious and repetitive data entry across multiple spreadsheets or software systems can result in significant setbacks, inconsistencies, lack of transparency, and a higher risk of errors. Save time and reduce errors with a streamlined solution.

Lack of Real-time Visibility

Managing customer transactions through spreadsheets can hinder timely updates on jobs and impact accuracy. Real-time visibility on data is crucial for businesses, but relying solely on spreadsheets can present its own set of additional challenges.

Unable to Collaborate

Collaboration is key to business success. Unfortunately, when employees are limited to using spreadsheets to carry out operations and service their customers, effectiveness in collaborating becomes forfeit.


Managing all of your company’s data through spreadsheets can lead to working in silos, which decentralizes your data and hinders your ability to quickly access crucial customer information. Don’t let your business get bogged down. Find a more efficient solution for your company’s data management needs.

Poor Scalability

Scalability challenges can cripple companies that lean too heavily on spreadsheets. As operational workflows expand, departmental structures evolve, or business processes adapt, the use of spreadsheets can become unreliable, inefficient, and bloated with layers of redundant data entry, culminating in wasted time and reduced productivity.

Lack of Integration Options

Businesses relying on spreadsheets often face the challenge of manually transferring transaction data across multiple software programs. This leads to a significant loss of time and effort. Opting for an integrated system would simplify this process and improve efficiency.

Ineffective Customer Service

Spreadsheet-based order management systems often lead to poor customer service. With such systems, companies struggle to offer timely updates and manage change orders effectively. This inefficiency can hamper your ability to provide top-notch customer service.

Unlock better data management and collaboration by eliminating the risks of error-prone, unsecured, and difficult-to-maintain spreadsheets. Avoid data silos and foster collaboration with a more efficient solution and you’ll experience what a difference working more efficiently can have on your business within the first 6 months.

4 minute read

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Copyright 2023 Mothernode, LLC. All rights reserved.

Copyright 2023 - Mothernode, LLC. All rights reserved