Designing and implementing a database can be an incredibly large task; however, if you are accessing large amounts of data regarding many different entities, a database has many benefits. Many small businesses start out using spreadsheets. As the sales volume and number of employees grows, a database becomes an excellent resource. The earlier you implement a database, the easier it is to design.
Searching for information or relationships within a large amount of data is typically much faster using a database vs. Excel or some other spreadsheet software.
A database can be accessed by multiple users at the same time. This is especially beneficial for large businesses with many employees who need access to the same data at the same time.
A database, with the proper settings, can be accessed from anywhere in the world through the Internet, allowing traveling employees to access needed data away from the office.
Using different views--which are custom data representations--each user has the ability to see the data in a way that benefits them the most. Additionally, the data can be referenced by many different applications.
Data stored in an electronic database can be used in newer Database Management System (DBMS) software as it is released. With very few exceptions, all new DBMS software will work on existing databases.