But you might want to write a function (such as SUM) that references a range of cells on another worksheet or workbook. Referencing a single cell is useful enough. How to Cross Reference a Cell Range in a Function Keeping data in one workbook, if possible, is more reliable. Users creating or renaming folders and moving files can break these references and cause errors.
Although creating references to other workbooks is straightforward, they are more susceptible to issues.