
Excel as a database and able to be a database application just like Access. I am sure that you won't believe me when I say that anything that you can do with a regular programming language is also possible with Microsoft Excel.
But of course, there are advantages in using Microsoft Excel as database. What are the advantages?
First and foremost, if you have the Microsoft Office in your PC, you don't need anything else to be installed in your computer. You are good to go and can start with your programming straight away.
Second, if you are a beginner, you can easily learn the Excel VBA Programming because you are half familiar with the programming platform that you are going to use, which is Excel.
Third, you can start with small Excel database application and as the need grows especially on records that are getting huge, you can still use the same Excel application and upgrade your database platform from Excel to other high-end databases like Access, SQL Server, Oracle, MySQL, etc.
Fourth, Excel is capable of connecting directly to OLAP databases and can be integrated in Pivot Tables.
Fifth, You don't need to create a your own financial modules. Excel is rich in financial functions like Fixed Assets Depreciation, Amortization, etc.
Sixth, Excel is portable. You can send it to someone through email.
Excel database application also has its disadvantages. But these disadvantages are sometimes have some workaround that can be done to fix or sometimes there are little effect that you can just live with them.
Here are the disadvantages:
When you develop your application into one file it can be huge and will make your program execution very slow. But as I told you, there are workarounds. Design your program to have compact codes to lessen the bloating of the file. Another way is to separate each application function into more than one files. For example, if you are going to design a purchasing program, you can separate each of them; the purchase requisition function, item-and-price comparison matrix function, vendor master list maintenance, item master list maintenance, purchase order function, etc. Each will have small file, therefore execution is faster.
When you separate functions to multiple files, Excel files are prone to get lost in your hard drive especially when you break your application to too many files. You should practice a good folders/sub-directories management.
Excel worksheet as a database has a limited number of rows or records that you can store. But when you reach the 65k lines limit, you can convert it easily to Access and the rest of the application is can still be used.
If you can send Excel via email, you can accidentally send your file to someone who should not have it or not authorized to have it. Solution? You can password protect your Excel file. You can do it in two ways. First, Excel is capable of password protection in many ways (I will also discuss that in the future). Second, you can create your own password protection by Macro/VBA programming.
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