Excel is primarily a top spreadsheet application but can be used as a database. It organizes data in tabular form, allowing users to store named records across the rows and named fields across the columns.
The process of setting up traditional databases is time-consuming and expensive. But they play a crucial role in the proper functioning of web applications.
You can easily organize and analyze massive datasets in Excel. For small and medium-sized businesses, it can serve as a perfect database. It may help them manage many things, from organizing inventory to keeping track of orders.
In this article, we will learn how to use Excel as a database, including the pros and cons of doing so. Make sure to read the article till the end, as we have included 3 free database templates for your requirements.
What is a Database?
A Database offers a structured way to access, edit, manage, and update data required for running web applications. It includes named records across the rows and named fields across the columns.
It may contain essential information such as customer details, sales data, and inventory.
A few Common Database Management Systems (DBMS) include MySQL, PostgreSQL, and Microsoft SQL Server. They are capable of handling massive data and performing complex queries.
Why Use Excel as a Database?
A typical Database Management System is complex and often requires advanced coding knowledge for installation, configuration, and long-term management.
Excel is not a database, but it can function as a database to satisfy your simple needs.
Users can create tables where they can store data across rows and columns. They can filter, sort, query data, and also perform mathematical calculations using hundreds of built-in functions.
Such databases created using Excel are suitable for small business owners, students, and individuals, requiring all the features of a dedicated database in an affordable package.
Here are several benefits that make Excel suitable for basic database management:
#1 – Ease of Use
Excel boasts a simple user interface. It is one of the most common tools used to keep track of daily activities and boost productivity. One can easily organize and maintain their data without having to learn complex database languages.
Simply put, you don’t need to have any advanced skills or knowledge as in the case of traditional database management systems.
#2 – Quick Setup
Setting up a database in Excel is quick and pretty straightforward. There is no need to worry about installing software or configuring servers.
All you need is an Excel spreadsheet to start. You can directly open the workbook and enter your data in the tabular form.
#3 – Cost Effective
A dedicated database management system is expensive. So, one of the major advantages of using Excel as a database is its cost.
Excel is a part of Microsoft Office suite, or you can purchase it as a standalone application at a relatively low cost. This can be an attractive option for individuals and small businesses with limited budgets.
#4 – Robust Reporting
One of Excel’s biggest strengths is its reporting capabilities.
Excel has over 400 built-in functions that allow users to perform calculations, look up data, and generate reports. They can take advantage of Excel’s charts and graphs to create a summary or dashboard from your database.
#5 – Visualization And Charts
Microsoft Excel offers a variety of tools for creating graphs and charts. It helps users quickly summarize large datasets and identify trends. Whether you need a simple bar graph or a complex line graph, Excel has got you covered.
#6 – Integration With Other Applications
Excel can be integrated with other Microsoft Office applications like Word and PowerPoint. This makes it easy to create reports and presentations using your data.
You can extract data from an Excel workbook and insert it into a Word document for further analysis.
What are the drawbacks of using Excel as database?
While Excel offers many tools for basic database management tasks, it is important to note that it may only be suitable for some use cases.
A standalone database management system comes with its own set of advanced tools and features. Excel is not a perfect database solution, and it has some drawbacks to consider:
#1 – Limited Scalability
Browser-based Excel’s performance can be affected while dealing with large datasets. Large businesses may have massive amounts of data to be stored. In this case, Excel may become slow, especially when multiple users are working on the same file.
This makes it incompatible for businesses with large datasets or high transaction volumes.
#2 – Concurrency Issues
Excel is not designed for real-time collaboration. Though there are a handful of real-time collaboration tools, they are not intended for complex scenarios. You can share Excel files via cloud services like OneDrive or SharePoint, but it doesn’t have the same safety features as a dedicated database.
Additionally, version conflicts may occur when multiple people try to edit the same file simultaneously.
#3 – Lack of Advanced Data Management Tools
Compared to a specialized database management system, Excel lacks many advanced tools. For example, one cannot easily create relationships between tables.
While Excel offers features like Power Query, they are less powerful than those found in SQL-powered databases.
#4 – Security Concerns
Excel files are easy to edit, share, and update. The level of control is comparatively low when shared with multiple users. It can pose a higher risk when handling sensitive data.
The password protection feature of Excel may come to your mind, but it is less robust than the security measures offered by competitive database management systems.
#5 – Lack Of Automation
Excel cannot automatically update data through triggers. One may use VBA to automate repetitive tasks, but it requires coding knowledge.
Overall, automation is a challenging task for beginners in Excel.
How to use Excel as a Database
Nowadays, Excel is installed on almost every new desktop and laptop. It offers a simple way to analyze data and compare different datasets. Learning how to use Excel as a database can be advantageous to students or professionals with a tight budget.
It is pretty straightforward, though!
Let us start with the CRUD operations – Create, Read, Update, and Delete.
1. Creating Database
The first step is to create your database by creating a table in Excel. For example, if you want to track customer orders, you need to make a table with columns such as Customer Name, Product, and Price.
Excel, with its intuitive interface, allows you to insert a table and add your records quickly.
Note that you can enter data manually or import it from external sources.
2. Reading Database
This is one of the important features of any Database Management System (DBMS).
Reading data from a database refers to searching for specific data. In Excel, you can use filters, lookup functions, and pivot tables to retrieve information. For example, using the VLOOKUP function to search for all the orders placed by a customer.
3. Updating Database
To update the existing data, simply edit the relevant cells where you want the changes to be made. Excel allows you to easily add, edit, or update your records directly in the table.
You can also use the copy-paste operation or even automate the updation using macros.
4. Deleting Records
It is the final and most important feature of any database. You can remove single or multiple records that are unnecessary at the same time.
You can also use Excel tools like “Clear content” or “Delete Rows” to ensure the data is removed without affecting the structure of the table.
How can we Import Data in Excel?
Sometimes, you need to import your datasets into Excel from third-party resources. Here are the two popular methods to import data in Excel.
Method #1 – Using the “Get Data” feature
Excel’s “Get and Transform data”, also known as “Power Query” is a powerful tool for importing data from various sources.
Here is how to do it:
- Open the Excel application on your device
- Go to the “Data” tab in the main menu
- Click on the “Get Data” option in the “Get & Transform Section” group
- You will see a dropdown menu with various data source options
- Choose your data source from the wide range of options
The options are as follows,
- From File (e.g., Excel workbook, XML, CSV, Text)
- From Database (e.g., SQL Server, Microsoft Access Database)
- From Online Services (e.g., SharePoint, Microsoft Exchange Online)
- From Power Platforms
- From Azure
- From Web
- From Other Sources (e.g., ODBC, OLEDB)
The main benefit of using this feature is that once connected, you can quickly refresh the data with one click. It also supports a wide range of data sources, making it helpful in integrating multiple datasets into one Excel file.
Method #2 – Drag and Drop Method
The drag-and-drop method is a quick and convenient method of importing files into Excel. You can directly drag the files from your computer into the Excel sheet.
Follow the steps below to use this feature:
- Open the folder where the file you want to import is located
- Click and hold the file you wish to import
- Drag it into the Excel window
But this method only works for file formats such as the .csv, .txt, .xlsx, etc.
You can also search for your Excel workbooks by clicking on “File > Open”.
Note: If you want to import data into a particular sheet, make sure that the sheet is open and active in Excel before dragging and dropping.
How can we Export Data from Excel?
Exporting data from Excel allows you to share or move your information to different systems.
You can export data in Excel using several methods. They depend upon your needs.
Here is the most common method:
- Open the workbook that contains the data you want to export
- If you want to export a specific portion of the data, select the relevant cells, rows, or columns
- Hover to the main menu and go to “File”
- Click on “Save As”
- Choose the location where you want to save the file
- In the “Format type” dropdown, select your desired file format from the available options
- Click “Save”
Top 3 FREE Excel Database Templates of 2024
1. CRM Database Template
Click Here to Use This Template!
This CRM database template is designed by SmartSheet. It can be used to track leads, communication logs, and customer contact information.
The main goal is to allow users to create a centralized database for managing leads. You can list customer company names, status, and projected sales.
This information can be used to plan your next actions. The template is free to download. You can customize it by adding or removing columns as per your requirements. Additionally, it does not contain any formulas, so feel free to edit any row or column.
2. Retail Inventory By TheGooDocs
Click Here to Use This Template!
This inventory template by TheGooDocs helps you track stock levels, orders, and product details in a simple, organized way.
Note that there are separate columns for item names, conditions, categories, quantities, prices, and suppliers. You can easily monitor stock availability and keep track of orders to ensure efficient inventory management.
3. WordPress Contact Form Database
Click Here to Use This Template!
Microsoft Excel offers seamless integration with several content management systems, like WordPress. The above template is very straightforward and allows you to gather subscriber data or form submissions directly from your WordPress website.
You need to use third-party tools or plugins for this integration. Some popular plugins for this purpose are as follows:
- NinjaForms
- Contact Form 7
- WPForms
- GravityForms
- WP All Export
You can also use automation platforms like Zapier to export data directly from WordPress to Excel.
Conclusion
So, this was all about using Excel as a Database Management System. Remember that Excel can do much of what a dedicated database does, but it gets the job done for small and medium-sized businesses.
Moreover, it is an affordable option.
You can also refer to our article,
How to Use Google Sheets as Database in 2024 (FREE Templates) – Pros and Cons
It is a step by step guide to using Google Sheets as database through API.
Also, make sure to explore our blog for more tips and tricks on using Excel to save money and improve productivity.