Creating databases is so common today because the lifestyle that exists is busy. The activities are so many that if you do not have a plan, you will miss other important things. A database allows one to store information in one place. This requires a database, which store large amounts of information. The information in the databases is helpful in making decisions and acts as point of reference in future. It makes the retrieval of information become easy. The computer has allowed data manipulation and storage. The accountants could use traditional means of organizing data but with the advent of computer, these tasks happen within a short time. The drawbacks of a relational database design include the cost and the limitations that come with some of the designs.
Relational approach to database design allows collection of raw data. The data structuring occurs in columns and rows but they their organization follows a principle concept. This makes the data easy to manage because the information can be in simple rows and columns. Maintaining consistency in relational database is easier compared to other types of databases. They produce data entries that are similar and consistent in nature. The consistent nature of data entries makes it difficult for errors to occur. Using this type of database design helps in finding relationships between different types of data. A good example is two retailers buy the same product; relational database approach uncovers the relationship.
Using a spreadsheet program such as Microsoft® Excel® is not adequate for database work. Microsoft excel is only useful in the analysis of data while databases helps in data storage. Databases store all types of data from words files to excel files. Therefore accountants need both the database and excel spreadsheet to manage data.
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