Here are some little-known facts about Microsoft Excel: First, not a single investment banker used Microsoft Excel prior to the Stock Market Crash of 1929 . . . The result? The Great Depression. Second, not one city planner prior to the 1906 San Francisco earthquake used Microsoft Excel . . . You know what happened: Disaster. Certainly, you don’t want your business relegated to statistics like these. For that reason, it’s valuable to review what Microsoft Excel can do for you—both to clear up misconceptions and highlight Excel’s benefits.

I’ve found that some businesses use Microsoft Excel used like a food processor—an intermediate step in the greater scope of a project. The workflow typically goes something like this: “On the first of the month, Sally emails me a Crystal report she has run. I copy it into Excel and spend most of the day manipulating the data, generating totals, and making graphs. When I’m done, I copy and paste these into PowerPoint for the management meetings.”

If you are using Excel as an intermediate step between applications, you may be overlooking features of other applications used in the process. Take a step back to determine the best source for the data and the desired outputs. The less you manipulate the data the better—both to prevent data corruption and to promote operational efficiency. Although Excel shines in performing these types of calculations, sometimes this type of work can be completed automatically in other applications.

Other employees hesitatingly scrutinize Microsoft Excel like a mysterious bottle from an overseas bazaar: “Do you drink it, wash with it, or rub it on sore muscles?” I hear questions like: “Is Excel a database? Should I use it as my address book, or can I set up a flyer in it?” Excel is not a word processor nor is it a database; it is a spreadsheet with rows and columns. It is a flat file storing all information together; a relational database stores information in dedicated areas. Although Excel handles text and graphics, it is a poor choice for routine word-processing tasks.

Adventurous and technically-savvy folks may use the many features of Excel, but find it lagging in performance—like using a pair of pliers to drive in a nail instead a hammer. Sure, Microsoft Excel can handle 50,000 records in 150 columns, run Visual Basic code between multiple workbooks, perform a myriad of complex functions, and still render some slick graphs . . . but it may not be the best tool for the task. You might consider a different application to store your data and complete the operations.

A final group has discovered that Microsoft Excel is like a V8 engine that starts consistently and runs smooth. For example, I recently spoke with a Fortune 500 company’s Financial Analyst. They are using Excel almost exclusively for their daily budgeting, analysis, and reporting work. Department-wide, they are taking advantage of the varied functionality Excel offers. So at your office, start Excel’s ignition, and use it for that which it was designed. You’ll hear it purr down the business highway.

Tom Urbanowicz is the owner of DataDesignIT, helping businesses operate efficiently and communicate effectively. Tom can be reached at tom@datadesignit.com or at 530.513.1691.