Although spreadsheets have been here for some time, and their uses still remain prominent in the area of finance,sales, data analytics and many more industries. At present in 2024 there are probably two leading contenders for using a good spreadsheet program – Microsoft Excel and Google Sheets – both which bring different functionalities, pros, and limitations. Again, it becomes a choice in terms of the sophistication of analysis being done, how much group work, or access needed to that data. Compare both and guide you on what is best for your analysis of finances in this article.
1. Functionality and Features
Financial analysis has been one of the favorite things to work with for a long-time using Excel due to its powerful features. It is advanced in functions, complex in formulas, and powerful in data analysis tools. Large datasets and intricate financial models are suitable thanks to pivot tables, macros, and Power Query. For instance, Excel can easily execute complex formulas, statistical analysis, and even sophisticated charting options which are required in forecasting and budgeting.
Google Sheets is a more basic tool compared to Excel but has taken giant strides over the years. It supports most core features, such as pivot tables, basic charts, and commonly used financial functions, but lacks some of the advanced features found in Excel, such as Power Pivot or VBA scripting for automation. While it might be enough for simpler financial analysis tasks, it doesn’t have the same depth for more complex models.
Better: Excel. If you need advanced features and complex financial modeling capabilities, then Excel is the clear winner.
2. Ease of Use
In terms of use of ease, Google Sheets are better. The simplicity is very intuitive, so it allows first-time users or novices with little experience about a spreadsheet to easily adopt, and it is highly perfect for users who should provide basic to intermediate financial analysis in the absence of unnecessary cumbersome tools.
Although user-friendly, the same thing cannot be said of Excel with regards to a learning curve; that is because of the much complexity associated with more complex features and functions that can range extensively. Thus, in terms of time to learn when getting into financial analysis for the first time, using advanced tools like pivot tables, macros, or VBA scripts would definitely require some extra time before being comfortable enough with it.
Google Sheets: Better for those who wish to have a carefree interface, especially for first-time users.
3. Collaboration and Sharing
Another major strength of Google Sheets is the emphasis on collaboration. It is cloud-based, meaning that many users can collaborate on the same spreadsheet simultaneously, which makes it perfect for teams or organizations requiring real-time collaboration. In addition, it automatically saves changes and keeps a version history so that you can easily track changes made by different users.
Excel has made a great effort in the direction of integrating into the cloud through Microsoft 365, yet in terms of real-time collaboration it lags behind Google Sheets. While you can share documents and collaborate online using Excel, it is, however, a bit more cumbersome than the seamless experience offered by Google Sheets.
Better: Google Sheets. For real-time collaboration and easy sharing, the winner is Google Sheets.
4. Cost and Accessibility
Google Sheets is free to use, provided you have a Google account. It, therefore, is one of the cheapest options available, especially for small businesses or freelancers. The use of Google Sheets is free to anyone, especially if one wants to make powerful, inexpensive financial analysis. Besides that, because Google Sheets are cloud-based, one can access it from any gadget with internet.
In most instances, Excel requires you to part with money on the license of Microsoft Office or, at least, sign up on Microsoft 365 free of charge. This would hardly matter for the business requirement of a company that requires harnessing its full power; however, it happens to be somewhat not feasible for small businesses or individuals, especially where free solution would suffice.
Better: Google Sheets. It’s free and accessible promptly.
5. Data Storage and Integration
Google Sheets also offers cloud storage through Google Drive, which makes access and sharing easy. However, if very large datasets are applied, Google Sheets becomes rather slow in service and pretty less responsive. Data limits are stricter in Google Sheets than in Excel; therefore, it doesn’t usually work well with large amounts of data.
However, with the Power Query tool to import and process data, Excel can now support bigger datasets. If you want to include external financial data or huge financial models with thousands of rows of data, then Excel is Better.
Conclusion
Both have strengths in their financial analysis capabilities. However, if the work entails advanced modeling and large data sets and analytical tools are required, it is much better to choose Excel. On the other hand, if you give more emphasis to ease of use, collaboration, and cost, Google Sheets could be better for you
It all depends on the level of complexity your financial transactions carry and whether one needs collaboration or ready access to document files. For many, it is a combination of these two tools that would be the best combination.