According to a widely cited study, 94% of spreadsheets used for business decision-making contain errors. That’s a staggering number—and one that puts organizations at real risk for financial loss, operational mistakes, and poor strategic decisions.

To reduce that risk, many businesses rely on data validation in Excel. By restricting what type of data can be entered into specific cells, data validation helps enforce consistency, prevent obvious errors, and prompt users to correct invalid entries before analysis begins.

In short, Excel data validation reduces unstandardized data, errors, and irrelevant inputs. But it’s not always the right solution—and it’s not foolproof.

Let’s take a closer look at when data validation makes sense, when it can become a problem, and what you can use instead.

Why Data Validation Matters

One of the biggest mistakes organizations make is treating data validation as an afterthought. Too often, spreadsheets are built first and “fixed” later—after errors have already crept in.

The reality is simple:
the earlier you build validation into a spreadsheet, the better your results will be.

This ties directly to the classic data principle: GIGO (Garbage In, Garbage Out). If flawed data enters your spreadsheet, no amount of clever formulas or dashboards will produce reliable insights.

Key Benefits of Data Validation

1. Improved data integrity
   Validation rules help ensure consistent formats, values, and inputs across users.
2. Reduced human error
   Dropdowns, numeric limits, and date constraints prevent many common mistakes.
3. Time savings for analysts
   Data analysts spend nearly 80% of their time preparing data and only 20% analyzing it. Clean data from the start dramatically shifts that balance.
4. Support for compliance requirements
   Regulations such as HIPAA and GDPR require organizations to protect sensitive data and maintain accuracy. Validation helps support those efforts.

That said, data validation is a guardrail, not a guarantee.

The Limits of Data Validation in Excel

Data validation can prevent invalid inputs—but it cannot ensure correctness.

For example, imagine a validation rule that allows only “cat” or “dog” in a column. Excel will block “fish,” but it won’t stop someone from labeling a dog as a cat. The value is technically valid, but factually wrong.

This distinction matters.

Data validation improves structure—but it doesn’t replace data accuracy, context, or governance.

Understanding those limits helps determine when validation is helpful and when it becomes a bottleneck.

When Removing Data Validation Makes Sense

It may feel counterintuitive, but there are times when removing data validation is the right call.

1. When spreadsheet requirements change

If the original validation rules no longer match how the spreadsheet is used today, they become obstacles rather than safeguards.

2. When flexibility is required

Businesses evolve. A spreadsheet built for “cats and dogs” may suddenly need to accommodate “fish,” “hedgehogs,” or entirely new categories.

3. When troubleshooting formula errors

Validation rules can interfere with fixing formula issues such as #REF! or #DIV/0!. In these cases, removing validation temporarily can help isolate and resolve problems.

4. When preparing data for export or system uploads

Some downstream systems don’t recognize Excel validation rules. Before importing data into another platform, validation may need to be removed to avoid errors.

As long as the worksheet isn’t password-protected, data validation can be modified or removed easily. If it is locked and the password is unavailable, copying the data into a new worksheet is often the simplest workaround.

The Real Challenge: Manual Data Entry

At its core, data validation exists to control manual data entry. The more people typing data into spreadsheets, the more validation you need.

But what if manual entry wasn’t required at all?

That’s where many organizations begin to question whether maintaining complex validation rules across dozens—or hundreds—of spreadsheets is worth the effort.

A Better Alternative: Eliminate Manual Entry Altogether

If your spreadsheets exist primarily to analyze ERP data—such as NetSuite data—there’s a more reliable approach than enforcing validation rules cell by cell.

Instead of validating manually entered data, you can automatically pull accurate, structured data directly from the source system.

Excel Integration as a Data Validation Alternative

ExtendInsights for NetSuite eliminates many of the scenarios where Excel data validation is needed by removing manual data entry from the equation entirely.

With ExtendInsights, you can:

• Pull live NetSuite saved searches directly into Excel
• Refresh data on demand or on a schedule
• Build accurate, repeatable reports without copy/paste
• Eliminate formatting inconsistencies and entry errors
• Use Excel and Power BI with trusted, source-system data
• Write back new or updated data using controlled two-way sync

Because the data originates in NetSuite, accuracy and structure are preserved—without relying on validation rules to catch mistakes after the fact.

When to Use Data Validation—and When to Move On

Use data validation when:

• You rely on manual data entry
• Multiple users input data into the same workbook
• Standardized formats are required
• Compliance or consistency is critical

Consider alternatives when:

• Data comes from an authoritative system (like an ERP)
• Validation rules become difficult to maintain
• Spreadsheets are frequently exported or reused
• Analysts spend more time fixing data than analyzing it

For reporting and analytics workflows, the most reliable data is data that never needed validation in the first place.

Say Goodbye to Complex Validation—Hello to Accurate Reporting

Data validation is a valuable Excel feature—but it’s not always the most efficient or scalable solution. When your goal is accurate, refreshable, decision-ready data, automated Excel integrations offer a cleaner path forward.

If you’re ready to reduce errors, eliminate manual entry, and build confidence in your reporting, ExtendInsights for NetSuite can help.

Try ExtendInsights free for two weeks and see how effortless accurate data can be.