Updated September 2026: in 2021 I compared Google Sheets with Excel on OneDrive for online collaboration, having used Excel offline for my business and Sheets for sharing. I have rewritten it into a current comparison for small teams.
I used Excel offline for business work for years, but preferred Google Sheets for sharing and collaborating online. My original comparison covered basics like sign-in, storage and simple formulas. Both tools have changed, and the choice now depends on how your team works.
What do you need to use each?
Google Sheets needs a free Google account and stores files in Google Drive, which shares 15 GB of free storage with Gmail and Photos. Excel for the web needs a free Microsoft account and stores files in OneDrive, which offers 5 GB free. Paid plans raise both limits, and Microsoft 365 adds the full desktop Excel app.
Which is better for real-time collaboration?
Both support several people editing at once, comments, and version history. Google Sheets has long been smoother for live collaboration in a browser. Excel for the web has closed much of the gap, and co-authoring works well when everyone uses current versions.
Which handles complex work better?
- Excel: larger datasets, advanced functions, Power Query, pivot tables and macros, especially in the desktop app.
- Google Sheets: simpler interface, easy sharing, strong integration with Google Forms and Apps Script automation.
How do they handle each other's files?
Google Sheets can open and export Excel files, and Excel can open exported Sheets files. Simple spreadsheets convert cleanly; macros, some formulas and advanced formatting may not. Pick one as the home for each file to avoid version confusion.
Which should a small business choose?
If your accountant and partners use Excel, or you need advanced analysis, use Excel with OneDrive. If you mainly share simple sheets, collect data through forms or work in a browser, Google Sheets is quicker and cheaper. Many businesses use both for different jobs.
What about AI features?
Both now include AI assistants on paid plans, Copilot in Excel and Gemini in Sheets, for writing formulas and summarising data. Try them on a copy of your data first, and check the results.