Project Management Software vs Excel: Key Differences & Benefits

Introduction

A question that comes to your mind while planning the implementation of a project management software is whether it is enough to choose Excel or go for a Project Management Software itself. Many businesses get confused when choosing between Project Management Software and Excel due to some of the similar features and the reliability of Excel for a long period. Excel has been offering assistance to project management businesses for many decades with basic project tracking features. Excel is also the most common platform used by many businesses to organise data. However, the structure of projects has changed and so are the requirements. It is essential to check whether your business can efficiently manage your projects with Excel or do you need to upgrade to a dedicated project management solution.

Increased complexity, high competition in the market and demand for faster and more efficient project delivery now demand dedicated project management software for efficiency and collaboration. In this blog, Prominder 360, a leading project management software implementation partner will help you examine the differences between Project Management Software vs Excel. We will discuss the benefits of each tool and their differences.

What is Project Management Software?

Let us first examine what Project management software is and the reasons for designing this dedicated software tool. Project management software is exclusively designed to streamline project planning and execution. Besides, these tools offer comprehensive support for project tracking. Some of the key features of project management software tools include task management, real-time collaboration and automation of repetitive tasks. Besides, it ensures support for reporting and data management. Project management software uses multiple tools like Gantt charts, Kanban boards, and time tracking to help businesses manage and track multiple projects. Users can access the progress of multiple projects simultaneously to ensure the efficient completion of all the projects.

Also Read: How To Choose The Right Project Management Tool For Your Business?

What is Excel?

Excel is a spreadsheet program and this tool allows users to organize data. The creation of tabular columns and management of data becomes effortless with Excel. As it was designed decades ago aiming to ease data analysis, Excel is now used for project tracking. This is possible by creating task lists, timelines, and progress charts. On the other hand, Excel fails to ensure real-time collaboration of various departments. It also lacks automation features and specialized project management features. Hence, Excel is not an efficient tool to manage complex projects and fails to manage multiple projects simultaneously.

Key Differences Between Project Management Software and Excel

As we have discussed about Project Management Software and Excel separately, now we can check the key differences between the two:

Task Management:

PM Software allows efficient management of task assignments with well-defined functionalities. It also supports project progress tracking and automation.
Excel on the other hand needs manual updates and lacks automation support. Besides, it lacks task dependencies.

Collaboration:

PM Software enables team collaboration by sharing real-time updates, and files and enhancing communication between teams.
Excel can only be shared via email and this may lead to version control issues.

Automation & Reminders:

PM Software allows the automation of recurring tasks, deadlines, and reminders.

Excel needs manual input for all updates.

Data Visualization & Reporting:

PM Software offers interactive and user-friendly dashboards and generates interactive reports to offer quick and efficient insights.
Excel generates reports only with manual data entry and complex formulas.

Scalability:

PM Software is highly scalable and can manage large teams and multiple projects as well.
Excel is suitable only for small projects and management of complex projects becomes difficult.

Benefits of Using Project Management Software

Before you choose your perfect software solution, it is essential to understand the Benefits of Project Management Software vs Excel. Check how project management software can impact productivity and efficiency. Let us now examine the key benefits of choosing a PM software Vs Excel:

Centralized Project Management: PM Software ensures centralized operation by managing all tasks, resources, and communications from a single platform.
Real-Time Collaboration: Efficient communication between team members and different teams enables collaboration and file sharing faster.
Automation of Workflows: Automation speeds up workflow and reduces manual effort.
Better Resource Allocation: Tracking of project progress ensures optimal utilization of material and human resources.
Advanced Reporting & Analytics: We can get in-depth insights from reports to optimize project performance.
Integration with Other Tools: PM Software can be easily integrated with CRM, ERP, and finance software.

Benefits of Using Excel

Though Excel has many limitations, it may be suitable for certain purposes. The same is the reason why an Excel vs Project Management Tools comparison is still valid:

Familiarity: The majority of your employees, especially experienced employees may be more familiar and comfortable using Excel.
Cost-Effective: You don’t have to make any subscriptions or payments if you are already using Excel.
Customizable Templates: Personalization of project tracking sheets is possible.
Basic Data Analysis: We can manage simple calculations, pivot tables, and charts.
Offline Accessibility: Internet connectivity is not essential.

When to Use Project Management Software vs. Excel?

Let us examine the situations which are more suitable for using project management software and Excel.

A project management software with several functionalities allows effortless management of multiple projects. Hence, it is suggested to use PM Software if you are managing multiple projects and large teams. Projects requiring advanced task tracking, process automation and collaboration will need PM software. Besides, PM software is essential to generate detailed reports and get real-time updates.

Meantime, Excel is more suitable for managing simple projects with minimal collaboration requirements. It can be a good choice when your budget does not allow investment in PM Software.

Conclusion

It is difficult to give suggestions when the debate is about Project Management Software vs Excel as the recommendations can only be made by assessing project complexity and team requirements. Excel is more useful for small-scale projects. At the same time, businesses looking for streamlined workflows, automation, and better collaboration should invest in PM software.

Are you looking for the Best project management software? Contact Prominder 360 today!