As a general rule of thumb, databases should be used for data storage and spreadsheets should be used to analyze data.
If you currently use a spreadsheet to store data, ask yourself the following questions:
* Do changes made in one spreadsheet force you to make changes in others?
* Is the sheer amount of data unmanageable or becoming unmanageable?
* Do you have several spreadsheets that contain related information (such as separate sheets with sales for branches in Los Angeles, Chicago, and Houston)?
* Can you see all relevant data on one screen, or do you have to keep scrolling to find information?
* Are several people accessing the data at the same time?
* Do you have a difficult time viewing specific data sets that you want?
If you answered yes to at least two of the questions, you should think about moving your information to a database application.
In a Nutshell Use a database if...
* the information is a large amount that would become unmanageable in spreadsheet form and is related to a particular subject.
* you want to maintain records for ongoing use.
* the information is subject to many changes (change of address, pricing changes, etc.).
* you want to generate reports based on the information.
Use a spreadsheet if...
* you want to crunch numbers and perform automatic calculations.
* you want to track a simple list of data.
* you want to easily create charts and graphs of your data.
* you want to create "What-if" scenarios.
In most cases, using the combination of a database to store your business records and a spreadsheet to analyze selected information works best.