[screature2]

I'm guessing because of 1) lack of built in logging, 2) lack of change control and 2) difficult to automate testing and verification (because of it's relatively unstructured nature).

Excel as the source of truth for a financial system is particularly scary to me b/c it's so easy for someone/anyone to change entries or miscalculate so it's very difficult for me to get confidence in its completeness and correctness.

Completely agree about analytics and scripting, but I'd utilize the CSV/Excel reports as point-in-time analytics that can be tied back a structured source of truth (or a source of truth I can hold liable, e.g. a bank or credit card statement).

[allenz]

Logging: I just save a copy of the spreadsheet every time I make a tax filing. Do I need anything more fine-grained?

Validation: I'm confident that I can catch duplicated rows and mistyped amounts because Excel formulas verify that the sum of all transactions for each account equals the account balance, and that transfers between accounts add up to $0. Do I need anything more?

Point-in-time doesn't work because I need to keep track of info that doesn't show up in the bank statements. I run a Python script that adds pretty-prints names and adds categories, and I also manually enter check details, category adjustments, business purpose of meals and flight tickets, etc.

I don't use a proper database because to do so I'd have to give up Excel's nice features (or worse, switch back and forth between Excel and the database).

[dkersten]

> Validation: I'm confident that I can catch duplicated rows and mistyped amounts because Excel formulas verify that the sum of all transactions for each account equals the account balance, and that transfers between accounts add up to $0. Do I need anything more?

I'm sure that the people who made these billion dollar mistakes were pretty confident too... https://www.cio.com/article/2438188/enterprise-software/eigh...

"The error occurred when the accountant omitted the minus sign on a net capital loss of $1.3 billion" (Fidelity)

"There were honest mistakes made in a spreadsheet used in the implementation of a new accounting standard." (Fannie Mae, $1.36 billion loss)

There's a bunch of lower (million dollar) losses listed in the linked page too.

[allenz]

I don't doubt that people have made mistakes involving spreadsheets. But these mistakes are not unique to spreadsheets. Switching to an enterprise system doesn't magically prevent data entry problems.[1] Similarly, you're as likely to implement an accounting function incorrectly in Excel as in SQL or Java.

I think that you need to show that Excel requires more data entry, or riskier data entry, or that Excel can't catch as many errors, etc. For now I'm not convinced.

[1] https://www.accountingweb.com/aa/auditing/human-errors-the-t...

[jbergens]

This doesn't scale well. If only one person edits the spreadsheet and that person knows how to save copies and make sure there is only one latest version it may work. If you give this to 10 people they will start making copies, saving those with different names ans save the copies on some server or on their own machines and after a while you don't have a single source of truth anymore. And you almost never have logging when many people edit copies of Excel documents.

[allenz]

That's true. Currently I handle scaling by automating nearly all the work. Most routine transactions are automatically categorized without manual input; I just skim the report. We modify 0-2 transactions/day, which is low enough for Dropbox to work well. This wouldn't work for a Fortune 500.

[rbg246]

How do you know the account balance total they you are validating your line items against is correct? Is that coming from another accounting system?

[allenz]

I validate account totals against the balance reported by the bank.

[rbg246]

Oh I see so you are only reporting on cash receipts, so presumably there is an accounts receivable ledger to track the invoices raised with your cash received etc. Thanks for the reply

[allenz]

Yup, I use cash accounting because our medical AR numbers are mostly made-up. They're tracked and analyzed through a medical billing program.