Spreadsheets are one of the most useful tools in any organisation. They are quick to set up, flexible, familiar to almost everyone, and do not rely on an IT team or specialist technical knowledge. For many day-to-day business problems, they are exactly the right solution.

The challenge comes when a spreadsheet quietly becomes part of how the business operates. What started as a simple way to organise information can slowly turn into something more critical, more fragile, and harder to change. At that point, the tool may no longer be serving the business as well as it once did, and operations become dictated by the limitations of the spreadsheet.

This is something that we have seen many businesses of all sizes go through, and this article explores when that shift tends to happen, the signs to look out for, and what the next step could look like for your business.

Why spreadsheets work so well in the first place

Spreadsheets are popular for good reason. They are quick to create, easy to adapt, and do not require specialist skills to get started. They work well for exploring ideas, tracking straightforward information, or filling short-term gaps where speed and flexibility matter.

In many situations, a spreadsheet is the fastest and most sensible way to solve a problem. Using one is not a mistake. It is often a sign of practical, resourceful thinking.

How spreadsheets quietly take on more responsibility

Over time, as processes grow, volumes increase, and more people become involved, a spreadsheet that once supported a small task can gradually take on more responsibility.

This usually happens incrementally. A new column is added. A formula becomes more complex. Another team starts using the same file. The business grows. Before long, the spreadsheet is no longer just a tool. It is supporting a core part of how the business runs.

In many cases, spreadsheets are deliberately used for critical processes, and that can work well at a certain scale. Problems tend to appear as volumes increase and expectations change. What worked well for ten rows a week can quickly become fragile when it is supporting hundreds or thousands.

Signs a spreadsheet is no longer the right tool

There is rarely a single moment where a spreadsheet suddenly fails. Instead, there are usually a number of warning signs that suggest it is being pushed beyond what it was designed for. In one case we worked with, a critical Excel file eventually reached its maximum row limit, requiring a quick solution to allow day-to-day operations to continue. More often, the signs are subtler.

Some of the most common include:

  • Regular copying and pasting of data between sheets, files, or systems
  • Changes feeling risky because it is unclear what might break
  • Performance issues as file size grows
  • Multiple people regularly editing the same spreadsheet
  • Complex formulas that only one person fully understands
  • Errors being discovered after decisions have already been made
  • The spreadsheet being essential to daily operations
  • Sensitive or business-critical data being stored in a single file that can be easily copied or shared

None of these mean anything has been done wrong. They usually indicate that the problem the spreadsheet is supporting has grown in size, importance, or complexity. At that point, it is often worth considering a more robust, purpose-built solution that better supports how the business now operates.

What tends to go wrong when a spreadsheet is pushed too far

When spreadsheets are used beyond their comfort zone, a few predictable issues tend to appear.

Errors become harder to spot and easier to introduce. Version control becomes unclear, and knowledge about how things work gets locked in people's heads. Small changes take longer because of the risk involved, and it becomes difficult to understand who changed what, when, and why. When spreadsheets are stored locally on individual machines, or scattered across shared drives and old versions, it becomes much harder to build an accurate and reliable view of what is really happening in the business.

Over time, the spreadsheet can become a bottleneck rather than a help. The cost is not always obvious. It often shows up as lost time, duplicated effort, stress around changes, or decisions being made using incomplete, inconsistent, or unreliable information.

Why many organisations stick with spreadsheets longer than they should

There are good reasons spreadsheets often stay in place longer than they should. They usually still work most of the time, and replacing them can feel risky, especially when the spreadsheet supports something important. Custom software can sound expensive, complex and intimidating, and because the spreadsheet is internal, its limitations are often easier to tolerate than something that is exposed directly to customers.

In practice, the real cost tends to show up gradually and can remain hidden for a long time. Time is spent maintaining the spreadsheet, fixing issues, and working around its limitations as the business grows. What feels manageable at first can become a drain on time, attention, and confidence in the data.

What the next step usually looks like

Moving beyond a spreadsheet does not mean building a large or complicated system.

In many cases, the next step is small and focused. It might involve a simple internal tool, some targeted automation, or a better way for different systems to integrate and share information. The aim is not to add complexity, but to reduce friction and lower the risk that comes from relying on a fragile process.

The most effective solutions tend to support existing ways of working, rather than forcing a complete change, but solutions can also offer an opportunity to re-think the most optimal way of working, where you are not constrained by the limitations of a spreadsheet.

It's not about replacing spreadsheets entirely

Spreadsheets still have a place in most organisations. The goal is not to eliminate them, but to use them where they make sense. In some cases, new software works side-by-side with spreadsheets. For example, a recent project automated the processing of data from a spreadsheet into another internal system, removing hundreds of hours of manual work.

Often the right outcome is a combination of tools. A more robust system supports critical or high-volume processes, while spreadsheets remain useful for analysis, exploration, or one-off tasks where flexibility matters.

A better question to ask

Rather than asking whether a spreadsheet is "good" or "bad", a more useful question is:

What would happen if this spreadsheet stopped working tomorrow?

If the answer involves disrupted operations, delayed decisions, or a lot of stress, it may be a sign that the problem has outgrown the tool.

When it's worth having a conversation

If a spreadsheet feels increasingly fragile, difficult to change, or critical to day-to-day work, it is often worth stepping back and reassessing.

A short conversation can usually clarify whether a spreadsheet is still the right solution, or whether a change could make things run more smoothly. There is no obligation to replace anything, and no expectation that you have all the answers up front. Often, simply understanding the options is enough to decide the most sensible next step.