Why Spreadsheet Trust Is Quietly Disappearing — And How to Restore It
By Hiran de Silva
No one is talking about this.
And yet it may be the single most important issue facing finance leaders, auditors, and decision-makers who rely on spreadsheets.
We are losing transparency.
Not because spreadsheets are weak.
But because they have become too powerful.
The Original Superpower of Spreadsheets
When VisiCalc appeared in 1979, and later Microsoft Multiplan and Lotus 1-2-3, and then Microsoft Excel, something important existed by default.
- You could see the formula.
- You could trace it backwards.
- You could follow the logic with your eyes.
- You could audit it by inspection.
Excel later enhanced this with auditing tools – trace precedents, arrows, colour coding — tools that made reasoning visible.
This wasn’t just technical elegance.
It was psychological safety.
It was trust.
How did we get here? For millennia, information lived in documents — stone tablets, parchment, paper, files. The document paradigm dominated human civilisation. When electronic spreadsheets emerged, they retained that paradigm: logic embedded visibly inside a document.
You didn’t need to trust a hidden system.
You could see the system.
And that transparency is one of the primary reasons spreadsheets conquered business.
Trust was built in.
The Rise of Spectacular Power
Fast-forward to modern Excel.
We now have:
- Power Query
- Dynamic Arrays
- Lambda
- Data Models
- Complex transformation pipelines
- ETL logic embedded inside wizards
These tools are extraordinary.
They allow developers to model complex realities with astonishing speed and granularity. The results are spectacular. They demo beautifully. Social media loves them.
Likes rise. Subscriptions grow. Influence expands.
From the developer’s perspective, it’s thrilling.
The black box works. For them.
The Divergence No One Is Addressing
Here is the problem.
As power increases, transparency decreases.
The logic is no longer visible in cells.
It lives inside:
- M-code steps
- Query pipelines
- Nested Lambda functions
- Hidden transformations
- Encapsulated dynamic arrays
To the user, the model outputs numbers.
But the reasoning is hidden.
And that is the definition of a black box.
Even if technically accessible, it is practically inaccessible to most users.
And that is a profound shift.
Why This Matters More Than We Think
To the developer:
- The puzzle is solved.
- The engine works.
- The result is correct.
To the influencer:
- The demo is impressive.
- Engagement metrics rise.
- The content trends.
But to the finance managers and leaders …
To the controller…
To the boardroom presenter…
To the internal audit team…
Something essential has been taken away.
If a number looks wrong:
- You cannot immediately see it.
- You cannot immediately trace it.
- You cannot easily interrogate it.
- You may not even know where it broke.
And if the original developer is unavailable?
You are stranded.
This is not a minor inconvenience.
This is a governance issue.
The Boardroom Moment
Imagine this scenario.
You are presenting consolidated results.
An executive points to a number.
“That doesn’t look right.”
In the old world, you could trace the formula. Follow the chain. Answer the question.
In the black-box world?
You depend on hidden logic.
You depend on code.
You depend on transformations that may take hours — or specialist skills — to unravel.
Confidence drains from the room.
And trust in the model weakens.
Not because the model is wrong.
But because it is opaque.
The Hidden Cost of Modern Excel
Modern Excel has created a subtle divergence:
| Then | Now |
|---|---|
| Visible formulas | Hidden transformations |
| Cell-by-cell traceability | Encapsulated logic |
| Manual audit possible | Specialist intervention required |
| Psychological trust | Psychological dependency |
Power has increased.
Transparency has eroded.
And no one is addressing the imbalance.
The Solution: Instant Audit Trail Architecture
The answer is not to reject modern tools.
The answer is to pair every powerful engine with an instant audit layer.
If your model contains a black box, it must also generate:
- A visible breakdown
- A traceable logic trail
- A drill-down path
- Source-level transparency
- Self-checking alerts
Not buried inside technical steps.
But visible.
Immediately.
Boardroom-ready.
This is what I am demonstrating in the Travel Mates Excel Challenge:
- Consolidated numbers that can be drilled to entity level.
- Entity numbers that can be drilled to source entries.
- Visible reconciliation panels.
- Colour-coded breakdowns.
- Click-through transparency.
- Self-checking validation logic.
No technical expertise required to verify.
Just clarity. On demand.
Internal Check — Reimagined for the Spreadsheet Age
In traditional auditing, there was a concept called internal check.
It meant that ordinary workflow naturally verified itself.
Without extra effort.
That is what modern spreadsheet models must now do.
Every user becomes an effortless verifier.
Not because they are auditors.
But because the system is transparent.
Like a car dashboard that alerts you before catastrophe:
- Speed warnings
- Engine temperature
- Fuel levels
We need spreadsheet dashboards that self-check and self-expose anomalies.
Not silent engines hidden behind wizardry.
Why This Is Urgent
Business is dynamic.
Inputs change.
Assumptions shift.
Regulations evolve.
Black boxes break silently.
Without transparent audit architecture:
- Errors compound.
- Trust declines.
- Control weakens.
- Risk increases.
And ironically — the very tools designed to empower users can undermine confidence.
The Future of Trustworthy Spreadsheet Design
The fight against the black box is not about rejecting innovation.
It is about restoring balance.
We need:
- Powerful engines
- Visible logic layers
- Instant audit trails
- Drill-through transparency
- Built-in self-verification
Power without transparency creates fragility.
Power with transparency creates trust.
And trust is the foundation of financial leadership.
The Real Question
Spreadsheets became dominant because they were transparent.
Modern Excel is becoming dominant because it is powerful.
The next era will belong to those who combine both.
Not black boxes.
But glass boxes.
If we care about governance…
If we care about auditability…
If we care about boardroom confidence…
Then the fight against the black box has already begun.
Most just haven’t realised it yet.
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