Spreadsheets remain common in small-business operations, but that reliance can create extra work. The UK's 2025 Small Business Survey found that 43% of eligible employers used spreadsheets for income-tax records. Among people surveyed during Breathe HR webinars between August 2024 and January 2025, 64% of respondents used spreadsheets and paperwork for employee administration. The Hercules app builder offers businesses a way to create custom software for suitable manual workflows.
Finance teams allocated 28% of resource time to manual, automatable tasks in 2023. AI-powered no-code platforms like Hercules let businesses build applications with databases, backend functions, and user interfaces. Teams can describe what they need instead of writing code, although implementation and testing still matter.
Key takeaways
- Spreadsheets remain common in small-business records: The UK Small Business Survey found that 43% of eligible employers used spreadsheets for income-tax records in 2025. Separately, 64% of respondents to Breathe webinars used spreadsheets and paperwork for employee administration.
- Spreadsheets dominate financial planning: The AFP benchmarking survey found that 96% used spreadsheets for planning, while 93% used spreadsheets for reporting daily or weekly.
- Manual work consumes finance teams: PwC's benchmarking study found that finance teams allocated a median 28% of resource time to manual, automatable tasks in 2023, compared with 19% for top-quartile teams.
- Spreadsheet errors create additional work: A 2026 survey of 1,003 US operations professionals found that 22% encountered daily errors. Respondents spent an average of 3.6 hours per week correcting spreadsheet mistakes.
- Hercules can reduce manual work in suitable workflows: Petony Transportes built an ERP that replaced manual re-entry across three disconnected systems. MMA Plumbing built a 46-module operating system after receiving developer quotes of at least €250,000.
1. 43% of eligible UK SME employers used spreadsheets for income-tax records in 2025
The UK's 2025 Small Business Survey found that 43% used spreadsheets to maintain income-tax records among SME employers operating as sole proprietors or partnerships and reporting income-tax self-assessment liability. Another 69% used recordkeeping software. Businesses could use multiple methods, so the percentages are not mutually exclusive. Spreadsheets continue to support tax administration alongside dedicated software.
2. 54% of eligible UK businesses without employees used spreadsheets for tax records
The UK government's 2025 survey of businesses without employees found that 54% used spreadsheets among sole proprietors and partnerships liable for income-tax self-assessment. Another 55% used paper records, while 48% used recordkeeping software. These methods could overlap. The findings show how businesses without employees continue to rely on familiar recordkeeping tools.
3. 22.6% of respondents to a 2026 UK tax survey used spreadsheets for daily records
The UK Administrative Burdens Advisory Board's 2025–2026 report found that 22.6% used spreadsheets for day-to-day business records. The figure represents 2,291 of 10,140 responses to its recordkeeping question. Another 49.4% used Making Tax Digital-compatible accounting packages. These findings reflect tax-survey respondents rather than a representative sample of every UK small business.
4. 50% of businesses without dedicated accounting software said manual methods worked well enough
In a 2022 SMB Group survey, 50% of respondents without dedicated accounting or financial-management software said manual methods and spreadsheets worked well enough. This was the most common reason for not using dedicated software. The finding applies to the survey's nonuser group, which consisted of businesses with fewer than 20 employees. Satisfaction with existing methods can slow software adoption.
5. 64% of Breathe webinar respondents used spreadsheets and paperwork for employee administration
Among people surveyed during Breathe webinars between August 2024 and January 2025, 64% of respondents used spreadsheets and paperwork to manage employee administration. Tasks like tracking time off, storing employee records, and managing schedules often start in spreadsheets because businesses can adapt them to their needs. The percentage describes webinar respondents, not all small businesses, and does not separately measure spreadsheet-only use.
6. 84.8% of surveyed inventory operators used spreadsheets to track stock
A 2026 inFlow Inventory survey of 400 US professionals working in inventory, warehouse, supply chain, and operations roles found that 84.8% used spreadsheets to track inventory. Respondents represented different company sizes and industries. Spreadsheet use remained common even among larger companies. The finding shows how often businesses use spreadsheets to monitor stock, orders, and inventory records.
7. 52.5% of surveyed inventory operators relied exclusively on spreadsheets
The same 2026 inventory survey found that 52.5% used spreadsheets exclusively for inventory management. Another 21.8% combined spreadsheets with paper records. Unlike the broader adoption figure, this statistic measures exclusive spreadsheet reliance. Businesses using spreadsheets as their only inventory tool may need additional processes for stock updates, shared access, and reconciliation as operations grow.
8. 96% of FP&A professionals use spreadsheets for planning
The Association for Financial Professionals' 2025 survey of 362 financial planning and analysis (FP&A) practitioners found that 96% used spreadsheets for planning activities on a daily or weekly basis. Their flexibility and familiarity keep spreadsheets central to financial workflows even when specialized platforms exist. The survey included professionals from organizations of different sizes, so it does not represent small-business-only adoption.
9. 93% of FP&A professionals use spreadsheets for reporting daily or weekly
According to the AFP's 2025 survey, 93% used spreadsheets for reporting on a daily or weekly basis. All respondents reported using spreadsheets for reporting at least quarterly. Financial reporting remains tied to spreadsheets even when other systems generate the underlying data. These findings describe surveyed finance professionals, not small-business owners specifically.
10. 71% of companies represented in a finance-leader survey relied on spreadsheets for financial planning
The 2025 CFO Connect report found that 71% relied on spreadsheets for financial planning and analysis in companies represented by surveyed finance leaders. The survey included 253 finance leaders across Europe and the United States. The finding shows that spreadsheet reliance extends beyond businesses without specialized software. However, it does not isolate small businesses or establish how frequently each team uses spreadsheets.
11. Finance teams allocated 28% of resource time to manual, automatable tasks
PwC's 2024 Finance Effectiveness Benchmarking Study reports that finance teams allocated a median 28% of resource time to manual, automatable tasks in 2023, compared with 19% for top-quartile organizations. The gap represents an opportunity to reduce manual work through process changes and automation. The figures cover finance activities beyond spreadsheets and are not specific to small businesses.
12. 72% of finance teams in a 2020 enterprise survey reported automatable accounts-payable work
A 2020 Censuswide and Tipalti survey of more than 250 CFOs at medium-to-large enterprises found that 72% of finance teams spent up to 10 people-hours weekly on automatable accounts-payable tasks. The upper bound equals 520 hours annually, not the actual time lost by every team. Activities included invoice processing, supplier payments, and reconciliation. The finding provides historical enterprise context rather than a small-business spreadsheet benchmark.
13. 66% of surveyed accounts-payable teams manually entered invoice data into ERP systems
The Institute of Financial Operations & Leadership's 2025 research found that 66% manually entered invoices into enterprise resource planning (ERP) systems. Manual re-entry can increase processing time and create opportunities for mistakes when records move between tools. The finding measures invoice-entry practices across finance teams, not spreadsheet use specifically or a representative sample of small businesses.
14. 22% of surveyed operations professionals encountered spreadsheet errors daily
A May 2026 DOSS survey of 1,003 US operations professionals who regularly worked with spreadsheets found that 22% encountered daily errors. Common problems included manual data-entry mistakes, incorrect formulas, and copy-and-paste errors. The survey covered several industries and company sizes. These results show error frequency among spreadsheet-heavy operations teams, not all small businesses.
15. Spreadsheet users spent an average of 3.6 hours weekly correcting mistakes
The same 2026 DOSS research found that surveyed operations professionals spent an average of 3.6 hours per week fixing spreadsheet mistakes. That represents more than 22 eight-hour workdays annually if the weekly rate continues throughout the year. Corrections may involve reviewing formulas, checking entries, and reconciling records. This average should not be treated as a guaranteed time saving from adopting software.
16. Significant spreadsheet errors reportedly cost organizations an average of $4,315
According to the 2026 DOSS survey, respondents reported an average cost of $4,315 per significant error affecting their organizations. Such mistakes can contribute to incorrect orders, delivery problems, or additional administrative work. The figure is based on reported costs from operations professionals regularly exposed to spreadsheet workflows. It is not a universal cost per error or a prediction of what an individual small business will lose.
17. 61% of FP&A professionals cited unreliable data as a technology challenge
According to the Association for Financial Professionals' 2025 FP&A Benchmarking Survey, 61% cited unreliable data as a primary technology challenge. When financial information comes from multiple sources, identifying accurate and current records can require additional checks. The figure concerns financial data reliability generally, not spreadsheet errors alone.
18. 60% of FP&A professionals reported difficulty accessing data
The same AFP benchmarking survey found that 60% cited inaccessible data as a technology challenge. Access problems differ from reliability problems: records may be accurate but difficult to retrieve or combine. Businesses using disconnected spreadsheets alongside accounting and reporting tools may face similar issues, although the survey does not establish spreadsheets as their cause.
19. 92% of surveyed CFOs said accurate forecasting was a challenge
PwC's October 2024 Pulse Survey found that 92% of surveyed CFOs considered accurate forecasting a challenge, with 46% calling it significant. The study included 97 CFOs and examined financial uncertainty and business priorities. Forecasting depends on timely information, but economic conditions and other factors also affect results. The finding does not establish that spreadsheets caused these forecasting challenges.
20. 44.8% of surveyed inventory operators identified inaccurate inventory data as a challenge
The 2026 inFlow Inventory survey found that 44.8% reported inaccurate inventory data as a business challenge. The study surveyed 400 US inventory and operations professionals. Problems with stock records can affect purchasing, replenishment, and order fulfillment. Respondents used various management methods, including spreadsheets and dedicated software. The result highlights the importance of data accuracy but does not attribute inventory errors exclusively to spreadsheets.
How Hercules can help businesses move beyond spreadsheets
Hercules is an AI-powered app builder that lets businesses create custom software by describing their requirements without writing code. For suitable workflows, teams can replace disconnected spreadsheets with applications that combine records, business processes, and user interfaces.
- Reduce duplicate entry: Petony Transportes built an ERP that automated quote-to-payment workflows previously requiring manual re-entry across three disconnected systems. Its founder reports avoiding a $230,000 outsourced development quote.
- Build custom workflows: MMA Plumbing built a 46-module operating system after receiving developer quotes of at least €250,000.
- Consolidate software where appropriate: Kingdom Construction reports $30,000 annual savings after replacing four software vendors with a Hercules-built system.
These are individual customer outcomes, not guaranteed savings. Under the current Hercules terms, commercial business operations require a Business or Enterprise plan. AI Credits and Cloud Credits cover different usage types, so consider testing, integrations, and ongoing costs.
Explore Hercules pricing to compare the cost of building and running an application for your workflows.
Frequently asked questions
Why are spreadsheets still so common in small businesses despite their limitations?
Spreadsheets are familiar and often available at low cost or through existing software subscriptions. In a 2022 SMB Group survey, 50% of respondents without dedicated accounting software said manual methods and spreadsheets worked well enough for them. Familiarity and the effort involved in switching tools can keep spreadsheets in use even when alternatives exist.
What are the biggest risks of using spreadsheets for critical business data?
Risks include data-entry errors, version conflicts, inconsistent access controls, and inadequate change tracking in poorly managed spreadsheets. A 2026 survey of US operations professionals found that 22% encountered daily errors. When information is stored across disconnected files, mistakes may require additional reconciliation before teams can make decisions.
How can a small business determine if it is time to move beyond spreadsheets for accounting?
Signs include spending significant time on manual data entry, finding errors in reports, struggling with version control, or needing multiple people to update the same data. Measure how much time your team spends on these tasks and compare that cost with dedicated accounting software or a custom application. Review the Hercules documentation to understand how custom applications can support financial workflows.
Can no-code AI app builders truly replace complex spreadsheets for unique business processes?
For many suitable workflows, yes. Global Connectors built an accounting ERP on Hercules and estimates saving 200 hours per month by reducing duplicate entries. MMA Plumbing built a 46-module operating system to manage its operations. Hercules supports databases, backend functions, and user interfaces, allowing businesses to create connected workflows. Suitability depends on your requirements, integrations, and testing.
How much can a small business typically save by switching from manual spreadsheet tasks to automated software?
Savings vary by business size and processes. Petony Transportes reports avoiding a $230,000 development quote for its ERP. Kingdom Construction reports $30,000 annual savings on software subscriptions. These are individual customer outcomes, not typical savings or independently verified net returns. Your results depend on existing costs, implementation requirements, and ongoing platform usage.