When Is a Database Not a Database

When it's better to use a database program. It's no secret that accountants love their electronic spreadsheets. After all, the computer not only eliminates the onerous chore manual number-crunching, it produces spreadsheets faster and better. But CPAs' romance with spreadsheet programs has not been smooth. The problem can best be explained by a Mark Twain aphorism that says, all you have is a hammer, everything becomes a nail. Most accountants are quite handy with spreadsheet software - so handy, in fact, that many use their favorite programs to do more than just generate spreadsheets. The most common alternative use is to manage a database. They reason that if an electronic spreadsheet can manipulate, sort, filter and calculate numbers, why can't it do just as well with words? It can-sort Let's focus on the sort of part that answer - that is, when it is okay to use spreadsheet software to perform database functions and when it is plainly inappropriate because the software just isn't up to the task. This article examines the advantages using a database, presents a decision tree to determine whether a spreadsheet or database is most appropriate for a given accounting application and provides a representative list off-the-shelf database software packages for the personal computer. (For more information on databases, see Harnessing the Power Databases, by Andrew D. Luzi and R. K. McCabe, JofA, July93, page 71.) The authors conducted an informal survey 100 CPAs working for national and regional CPA firms who provide management consulting services for clients. They were asked about their experiences with and concerns about, spreadsheets in business organizations. Overwhelmingly, the issue spreadsheet misuse topped the list. The most frequently recommended solution was a database. ADVANTAGES OF A DATABASE Most spreadsheet packages include a few database functions, such as sorting, queries and limited statistical calculations. However, these functions are not as powerful as they are in database software - for these reasons: * Data independence. Unlike in a spreadsheet, each item in a database is stored independently any application that may access the data. It isn't necessary to anticipate just how these items might be used in the future when designing a database. In spreadsheets each item data and the methods manipulation (mathematical steps) are linked. That's what makes database software more flexible than spreadsheet software when managing data. * Data redundancy. In a database, individual data items (such as a name, address and phone number) generally are stored in one place and then accessed via queries asked the program. In a spreadsheet, data items often are duplicated many times as they are linked to other data at the user's command. * Data consistency. Because data redundancy is controlled in a database, changes to items are updated immediately, and all users can access the same updated values. In a redundant spreadsheet environment, a customer name change may be updated to the spreadsheet in the personnel department, but accounting and marketing may not be notified the change at the same time, if at all. Hence, a data consistency problem arises. * Data sharing. Users throughout the organization, with appropriate permission, can access a database and make concurrent updates. If one user is updating a spreadsheet, other users are restricted to reading that same spreadsheet. This shortcoming can be alleviated if the software runs in a graphical user interface (GUI) environment or on a network. * Data input control. The fourth generation language (4GL) provided by some databases allows users to format input screens with a host editing and validating controls. A 4GL automatically generates programming code based on user instructions. For example, a user might create an input screen complete with appropriate controls and the 4GL will automatically generate the programming code. …