1Password vs. Excel Password Lists: A Brutal Comparison

When business owners compare a password manager vs spreadsheet, the spreadsheet usually wins one argument:

“It’s free.”

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However, that argument ignores a much bigger question:

What does it cost when it fails?

Today, we’re going to make a direct comparison between using 1Password and storing company credentials in Excel. Not from a technical hype perspective—but from a financial and operational standpoint that matters to Texas business owners.

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The Reality: Credential-Based Attacks Are #1

According to enterprise security research, credential-based attacks remain the primary way cybercriminals breach organizations EPM Product Fact Sheet(Partner).

In plain English:

Hackers don’t “break in.”
They log in.

That means stolen, reused, or poorly protected passwords remain the easiest path into your:

• Email
• Accounting system
• Payroll
• Vendor portals
• Cloud drives

Now let’s compare tools.

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Excel Password Lists: What You Actually Get

An Excel password list typically looks like this:

• Website
• Username
• Password
• Maybe security questions

It might live:

• On a desktop
• On a shared drive
• In OneDrive or Google Drive
• Attached to an email

Here’s the brutal truth:

Excel does not encrypt individual credentials in a zero-knowledge architecture. It does not provide real-time monitoring. It does not log who accessed which password and when.

If someone:

• Copies the file
• Emails it
• Downloads it to a USB
• Shares it accidentally

You likely won’t know.

There is no:

• Audit trail
• Policy enforcement
• Role-based restriction
• Password health visibility

And from a compliance standpoint, that becomes dangerous.

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1Password Enterprise: What You Actually Get

Now compare that to an enterprise-grade password manager like 1Password.

1Password uses end-to-end encryption and enterprise security controls EPM Product Fact Sheet(Partner). More importantly for business owners, it provides:

• Role-based vault permissions
• Granular access control
• Audit logs for compliance reporting
• Policy enforcement for password strength and MFA
• Alerts for weak, reused, or compromised passwords

Those enterprise features matter.

Because if you ever face:

• A cyber insurance questionnaire
• A compliance audit
• A client security review
• A breach investigation

You can produce documentation.

Excel cannot.

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Financial Comparison: Spreadsheet vs Password Manager

Let’s talk money.

A typical password manager license costs a few dollars per user per month.

For a 10-person office, that’s less than what you spend on coffee.

Now compare that to the potential cost of:

• One fraudulent wire transfer
• One payroll diversion scam
• One ransomware incident
• One compliance fine

If one shared Excel file exposes your accounting credentials and results in a $35,000 fraudulent transfer, your “free” system just became very expensive.

Even worse, cyber insurance carriers increasingly ask:

• Is MFA enforced?
• Is password management centralized?
• Are audit logs available?

If you answer “we store passwords in Excel,” that does not strengthen your claim.

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The Operational Risk Nobody Talks About

There’s another hidden cost in the password manager vs spreadsheet debate:

Employee turnover.

When someone leaves your company:

• Do you know every account they had access to?
• Can you revoke access instantly?
• Can you rotate shared credentials safely?

With Excel, you manually change passwords one by one and hope nothing was missed.

With 1Password Enterprise, you:

• Remove the user
• Transfer vault ownership
• Enforce policy updates
• Review activity logs EPM Product Fact Sheet(Partner)

That process protects continuity.

Spreadsheets create guesswork.

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Security Architecture Matters

1Password’s architecture includes encrypted vaults and strong access control models EPM Product Fact Sheet(Partner).

What does that mean for a business owner?

Even if someone obtains access to company systems, the vault data remains encrypted and protected under enterprise-grade controls.

Excel offers file-level protection at best.

That’s a major difference.

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“But We’ve Always Done It This Way”

This is where business owners often push back.

“We’ve used spreadsheets for years and nothing has happened.”

That may be true.

However, cybersecurity risk isn’t measured by past luck. It’s measured by exposure.

Credential-based attacks continue to rise because they work EPM Product Fact Sheet(Partner).

If your business uses:

• Shared passwords
• Reused credentials
• Manual tracking
• No audit visibility

Then you are relying on hope as a security strategy.

Hope is not a control.

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Brutal Bottom Line

Let’s summarize the password manager vs spreadsheet comparison:

Category	Excel Password List	1Password Enterprise
Encryption	Basic file protection	End-to-end encrypted vaults EPM Product Fact Sheet(Partner)
Access Control	Manual	Role-based permissions EPM Product Fact Sheet(Partner)
Audit Logs	None	Full compliance logs EPM Product Fact Sheet(Partner)
Password Health Monitoring	None	Real-time alerts EPM Product Fact Sheet(Partner)
MFA Enforcement	Manual	Policy-driven
Offboarding Control	Risky	Centralized and immediate

One is a document.

The other is a security system.

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Final Thought: Free Is Often the Most Expensive Option

When you evaluate tools strictly by monthly cost, Excel wins.

When you evaluate by:

• Risk exposure
• Compliance posture
• Business continuity
• Cyber insurance readiness
• Fraud prevention

The answer becomes obvious.

Security should reduce financial risk, not create it.

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Schedule a Free IT Evaluation

If you’re still using spreadsheets for password storage or if you’re not sure how strong your credential controls are—let’s take a look.

Schedule a Free IT Evaluation with SofTouch Systems.

We’ll review:

• Password storage practices
• MFA enforcement
• Offboarding controls
• Compliance readiness
• Credential exposure risk

Then we’ll show you what’s strong, what’s exposed, and what to fix.

Because “free” should never cost you your business.