5 Reasons Why You Shouldn’t Store Your Passwords in a Spreadsheet

Secure password management is an incredibly important (yet often overlooked) factor for many businesses. Over the years, we’ve seen clients store passwords on scraps of paper, in their phone’s note app and more commonly, Excel spreadsheets.  

Whilst a spreadsheet provides somewhere for users to store passwords, it misses many fundamental features needed for effective and secure password management.  

In this blog, we discuss 5 reasons why you shouldn’t store your passwords in a spreadsheet. 

1 – Lack of Encryption 

Encryption is the process of converting information or data into a code to prevent someone from accessing it without authorisation.  

Spreadsheets typically lack robust encryption features, leaving your passwords vulnerable to unauthorised access. 

Unlike dedicated password managers who prioritise security, spreadsheets often rely on basic protection measures, making them an easy target for cyber threats. 

2 – Limited Accessibility Controls 

You might think ‘but I can password protect my spreadsheet’ surely that’s safe enough?  

However, spreadsheets lack the granular access controls and multi-factor authentication found in dedicated password management tools.  

For example, a spreadsheet can only be protected by a single password. This means that if a cybercriminal intercepts the password and the file, there’s nothing stopping them from gaining access to your whole password library.  

In addition, you may have some passwords you don’t want certain users to have access to. In this case, you would have to run and manage separate password spreadsheets for different user groups.

3 – Difficulty in Updating and Managing Changes 

Managing a growing list of passwords is a constant challenge. Spreadsheets make it cumbersome to update and organise passwords effectively.  

As your accounts evolve and require password changes, the manual effort required to keep the spreadsheet up-to-date increases, leading to a higher risk of oversight and errors. 

4 – No Secure Sharing Options 

Collaboration is a common aspect of both personal and professional spheres. Spreadsheets, however, lack secure sharing options.  

If you need to share passwords with trusted individuals, a dedicated password manager offers a more secure way to collaborate without compromising the confidentiality of your sensitive information. 

5 – Absence of Security Alerts 

Password managers come equipped with security features such as breach monitoring and alerts. Spreadsheets lack this proactive approach.  

In the event of a security breach or compromised password, a dedicated password manager will promptly notify you, allowing you to take immediate action to secure your accounts.  

This level of vigilance is crucial in today’s rapidly evolving cybersecurity landscape. 


While spreadsheets serve many purposes in our digital lives, they fall short when it comes to safeguarding our passwords effectively.  

Investing in a dedicated password management solution will ensure that your sensitive information is encrypted, easily manageable and equipped with essential security features, offering you peace of mind in an increasingly complex online world.  

Try NordPass for Free

As an official NordPass Partner, we’re pleased to provide our customers with a free 2-week trial of Nordpass. To learn more about the solution and try it out for yourself, reach out to the team at info@systemagic.co.uk or give us a call on 01225 426800.

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