Excel is Not a Knowledge Graph; Not all Knowledge Graphs are the Same

Excel and other electronic spreadsheets tend to be used for some jobs they are not intended for.  "If the only tool you have is a hammer; then everything looks like a nail."  Every tool has pros and cons and the right tool should be used for a job. Excel is not the only possible tool for every job.  Also, not every knowledge graph tool is the same. So what exactly are the differences?

Think about something.  What exactly are you trying to do with your spreadsheet?  Is your spreadsheet the right tool for the job? What are the wrong jobs for spreadsheets?

Microsoft Excel and Google Sheets are excellent tools but they are not knowledge graphs.  They are not relational databases either. In fact, there are lots of use cases where they are not the best tool given the many Excel knockoffs available that are trying to displace Excel. Personally, I have used Microsoft Access just as much as I have used Excel in my career as an accountant.

Not all knowledge graphs are the same either. I have heard the term "counterfeit knowledge graphs". I use the term "professional knowledge graphs" to communicate similar ideas that not all knowledge graphs are the same.

I am trying to get my head around knowledge graphs and when they might be useful.  I am also trying to understand the difference between XBRL-based knowledge graphs, RDF-based knowledge graphs, graph database type knowledge graphs, and PROLOG.

This graphic shows a comparison between Excel, Pacioli.ai's Luca Suite which is based on XBRL, and semantic web stack and graph database type knowledge graph tools. (Click here for a larger image)


What is super clear to me is that knowledge graphs are a new tool that professional accountants can have in their toolbox. That is obvious.  The truth be known; most accountants are going to stick with their preferred electronic spreadsheet far, far too much.

General purpose financial statements as XBRL-based knowledge graphs is a no brainer.  What I am exploring is other uses for knowledge graphs in accounting, audit, and analysis.

When I explain to professional accountants how accounting working papers and audit working papers and schedules could be represented as machine-readable knowledge graphs I have not had one of those accountants tell me that that is a bad idea.  If you have any good ideas about how to employ knowledge graphs in accounting; shoot me an email or message me on LinkedIn.

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