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When should you stop running the business on spreadsheets?

By Joseph Gomez Salazar · Paper StPublished Drafted with AI from the public sources listed below. Published by Joseph Gomez Salazar. How we make these guides

Short answer

Switch when the sheet has become a shared system: in our view, when 4 or more of the 7 signs below are true. With 2 or 3, fix the sheet first. Row limits are rarely the reason. Excel holds 1,048,576 rows (Microsoft). People, copies and retyping break it much sooner.

The goal

You'll be able to score your sheet, pick keep, fix or switch, and put a yearly cost on the sheet.

What to expect
You'll get
a 7-sign score card, a fix-it-first list and a cost sum.
Expect
about 6 minutes to read and 5 minutes to score.
For
owners whose team works from a shared spreadsheet. Not for: one person keeping their own notes.
Is this you?
  • Do 2 or more people type into the same sheet each week?
  • Do you retype numbers from another app into it?
  • Has a wrong number in it ever cost you money?

All no? Keep your sheet, and read "When a spreadsheet is still right". Any yes? Score your sheet below.

On this pageSections

The 7 signs

Each sign is something you can see in the sheet or the week. They come from what breaks first: shared editing, copying, history, action and access. Tick each one that is true today.

1People keep their own copies

Tells you
the sheet is now a shared system with no rules for who edits what.
Where you see it
files named "final", "v3" or "copy of".
How often
check today, then monthly.
Red line
2 copies in use for the same job.
Example
the office has "Jobs 2026", the crew lead has "Jobs 2026 (Sam)". They disagree on 3 start dates.

2You retype numbers from another app

Tells you
every retyped cell is a fresh chance for an error. The more careful audits of real spreadsheets found errors in at least 86% of those checked (Panko, 2000).
Where you see it
a tab you fill by hand from invoices or bookings.
How often
count one week.
Red line
more than 1 hour a week of retyping.
Example
40 invoice totals copied every Friday.

3Nobody can say who changed a number

Tells you
you have no trail when money is at stake.
Where you see it
right-click a cell, then "Show edit history". It misses added or deleted rows and changes made by formulas (Google).
How often
each time a number looks wrong.
Red line
a number that matters changed, and nobody knows who changed it.
Example
a price dropped from $450 to $45 and no one knows when.

4The sheet needs to do things, not just hold them

Tells you
you want reminders, handoffs or messages. A sheet waits for you.
Where you see it
follow-ups that live in someone's head. Some work accounts can email you when a cell changes (Google). A sheet does not text a customer on its own.
How often
count missed follow-ups for one month.
Red line
one missed follow-up that lost a job.
Example
a quote marked "sent" with no one set to chase it.

5Only one person understands it

Tells you
the business stops when that person is out.
Where you see it
formulas nobody else will touch.
How often
test it once a quarter.
Red line
nobody else can run the weekly totals.
Example
the owner's partner keeps the pricing tab. They go on holiday, and quotes stop for a week.

6People need part of it, not all of it

Tells you
you need access by role. Protecting a range stops edits, not viewing. People who can view can still copy and export it, and unhide hidden tabs (Google).
How often
check each time someone joins or leaves.
Red line
pay rates or margins in a file the whole team can open.
Example
a crew lead needs today's jobs, and sees every price.

7Keeping it tidy takes hours every week

Tells you
the sheet now has a hidden wage.
Where you see it
time spent fixing formats, merging copies and chasing blanks.
How often
track one normal week.
Red line
your own sum in the worked example comes out higher than a year of the software you would use.
Example
3 hours every Monday to tidy the job list.

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Score your sheet

Score card. Tick each true sign, then read your band.

#SignTrue today?
1People keep their own copies☐
2You retype numbers from another app☐
3Nobody can say who changed a number☐
4The sheet needs to do things☐
5Only one person understands it☐
6People need part of it, not all of it☐
7Keeping it tidy takes hours every week☐
TicksBandWhat to do
0 to 1KeepKeep the sheet. Score it again in 3 months
2 to 3Fix firstRun the fix-it-first list below this month
4 or moreSwitchPlan the switch. Fix-it-first still helps you move clean data

The bands are our view, not a study. No source sets a number of signs.

A score card of 7 signs with 4 ticked. The count points to the third of 3 bands: switch.
  • The 7 signs: one row each. Tick the ones true today.
  • Your ticks: 4 here, so this sheet lands in band 3.
  • The bands: keep (a tick), fix first (a pencil), and switch (an arrow, hatched).
Fig. 1From ticks to a band. Key below.
Fix-it-first list

Do these before you buy anything.

  • One file, one owner

    Delete or lock the copies.

  • Dropdowns for repeated words

    (status, location, name). In Sheets: Data, then Data validation (Google).

  • A change log tab

    date, who, what changed, why.

  • One row per job or order,

    never merged cells.

  • A second person runs it

    for one week.

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Worked example: one sheet, scored and priced

Worked exampleMade-up numbers, not a benchmark

A 6-person landscaping company runs jobs, crews and invoices from one sheet.

#SignTrue?What they saw
1Own copiesYesThe crew lead's copy
2RetypingYes40 invoices a week, by hand
3Who changed itNoOne editor on prices
4Needs to actYesQuotes never chased
5One personYesOnly the owner knows the formulas
6Part, not allNoCrew never open it
7Upkeep hoursYes4 hours a week

Score: 5 of 7. Band: switch.

What the sheet costs a year. Use your own numbers:

4 hours × $30 × 52 = $6,240 a year. Compare it with a year of the software you would use. This sum leaves out errors and lost jobs, so it is the low end.

hours a week of upkeep × hourly cost × 52 = yearly cost of the sheet

Your turn: score and price your sheet

LineYour number
Signs true today (0 to 7)
Your band
Hours a week of upkeep
Hourly cost of whoever does it
Yearly cost (hours × cost × 52)
A year of the software you would use

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If it goes wrong

Watch out

Common mistakes, and the fix for each.

  1. You switch, and the mess moves with you.

    Spot itthe new app fills with the same duplicates.

    Fix itrun fix-it-first before you import.

  2. Two systems run side by side for months.

    Spot itstaff still update the old sheet "just in case".

    Fix itpick a cut-off date, then make the sheet read-only.

  3. You buy for the rare case.

    Spot itthe demo you liked most shows features you did not tick.

    Fix itbuy only for your ticked signs. That part is our view.

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Check your work

Done

Do-confirm checklist. Do the work, then confirm each line.

Check yourself

Answer from memory, then open the answers.

  1. How many signs mean "plan the switch"?

    Show the answer

    4 or more. With 2 or 3, fix the sheet first.

  2. Does protecting a range keep people from seeing it?

    Show the answer

    No. It stops edits only. Viewers can still copy and export.

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When a spreadsheet is still right

  • One person, one purpose. A sheet you alone use to think through prices is a tool, not a system.
  • The process itself is unclear. Software copies your process. Write it down first.
  • A one-off job. A quote builder you use twice a year does not need an app.

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Your next step

This week

score your sheet today. It takes 5 minutes. Then time one normal week of upkeep, and fill in the cost sum on Friday.

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Go deeper: the real limits of a spreadsheet

Show the detail

The size limits are far away. Most small businesses never reach them.

ToolLimitSource
Excel1,048,576 rows by 16,384 columns on one sheetMicrosoft
Google SheetsUp to 20 million cells or 100 MBGoogle

Errors come early, even in small sheets. In lab tests, 51% of spreadsheets had errors, though most had only 25 to 50 cells (Panko, 2000). Audits of big real sheets found 1.1% to 2.5% of cells held an original error (Panko, 2000). Those studies are old. The point still holds: checking by eye misses a lot.

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Sources

  1. Panko, "Spreadsheet Errors: What We Know. What We Think We Can Do," EuSpRIG symposium, 2000. arxiv.org/abs/0802.3457
  2. Google, "Find what's changed in a file," Docs Editors Help. support.google.com/docs/answer/190843?hl=en&co=GENIE.Platform%3DDesktop
  3. Google, "Protect, hide and edit sheets," Docs Editors Help. support.google.com/docs/answer/1218656?hl=en&co=GENIE.Platform%3DDesktop
  4. Google, "Use conditional notifications," Docs Editors Help. support.google.com/docs/answer/14099459?hl=en
  5. Google, "Create an in-cell dropdown list," Docs Editors Help. support.google.com/docs/answer/186103?hl=en
  6. Google, "Files you can store in Google Drive," Drive Help. support.google.com/drive/answer/37603
  7. Microsoft, "Excel specifications and limits." support.microsoft.com/en-us/office/excel-specifications-and-limits-1672b34d-7043-467e-8e27-269d656771c3

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About this guide

How it was made
drafted with AI from the 7 public sources above. No Paper St client notes were used.
How it was checked
each number against its source, by a checker separate from the drafter, before release.
Who published it
Joseph Gomez Salazar. Published Oct 9, 2026. Last updated: not yet.

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