As someone who digged into that hole many times I have to say Excel is not the best tool to do sudokus, mainly because it's way too easy to miss mistakes there.
That being said, your approach is good but I'm not a big fan of using a column for each candidate. What I do is use a cell for each sudoku cell and implement custom formatting to differenciate between givens (well, you can mark those in the very start), solved cells and unsolved cells.
Little trick to make the candidates red in Excel:
Select the 9x9 grid
Menus -> Format -> Conditional Formatting -> New Rule
Format only cells that contain (second option) -> Value greater than: 9
That makes the candidates red and also if you write a single candidate starting with ' it will be displayed as red, too.
Here's another trick I used in some hard puzzles:
- Make nine copies of the puzzle that directly update, using =(ID OF THE CELL)
- Conditional Formatting on the 1st copy to search for all cells that include "1" in their character string, fill them with a color.
- Same with "2" on the 2nd copy and so on.
That makes easier to spot mistakes, singles, pointing pairs, etc.