Financial Modelling involves developing a mathematical model to represent the financial status and performance of a company, project, or investment. Financial Modelling Software is a tool that helps you build, analyse, and present Financial Models conveniently and efficiently. This software can save you time, reduce errors, and enhance your decision-making process. This blog will review the top 10 best Financial Modelling Software and compare their features, benefits, and drawbacks.
Table of Content
1) What is Financial Modeling Software?
2) Why is Financial Modeling Important?
3) Financial Model Spreadsheets vs Financial Modeling Software vs Financial Model Builders
4) Best Financial Modeling Software
5) Conclusion
What is Financial Modeling Software?
Financial Modeling Software enables the creation and manipulation of financial models using various functions, formulas, and data sources. This software supports tasks such as:
a) Forecasting revenues, expenses, cash flows, and profits
b) Valuing assets, liabilities, equity, and investments
c) Evaluating scenarios, sensitivities, and risks
d) Optimising strategies, plans, and budgets
e) Generating reports, charts, and dashboards
f) Sharing and collaborating with stakeholders
Financial Modeling Software is classified into two types: Spreadsheet-based and non-spreadsheet-based. Spreadsheet-based software, like Excel, uses a familiar interface for creating and editing financial models. Non-spreadsheet-based software, such as graphical or web-based platforms, offers different interfaces and formats for model creation. Each type has its own advantages and disadvantages, depending on individual needs and preferences.
Why is Financial Modeling Important?
Financial Modeling is crucial for businesses as it provides a comprehensive framework to project future financial performance based on historical data, assumptions, and market conditions. By creating detailed financial models, businesses can assess the viability of projects, investments, and strategic initiatives, aiding in informed decision-making.
Financial models help in evaluating the impact of different scenarios and strategies, such as mergers and acquisitions, capital budgeting, and fundraising activities. They also facilitate the analysis of financial health through key metrics like revenue, expenses, cash flow, and profitability, allowing businesses to identify potential risks and opportunities.
Moreover, Financial Modeling is essential for communicating financial forecasts to stakeholders, including investors, banks, and management, ensuring transparency and building confidence. It also aids in compliance and regulatory reporting, supporting accurate and reliable financial documentation.
Financial Model Spreadsheets vs Financial Modeling Software vs Financial Model Builders
Financial Model Spreadsheets
Financial model spreadsheets are typically created using software like Microsoft Excel or Google Sheets. These are highly customisable, allowing users to build models from scratch or use templates. They require a good understanding of financial principles and Excel functionalities, offering flexibility but demanding significant manual input and validation.
Financial Modeling Software
Financial Modeling software refers to dedicated applications designed specifically for creating financial models, such as Quantrix, Adaptive Insights, or Anaplan. These tools provide advanced features like built-in financial functions, scenario analysis, and automated reporting. They often include templates and pre-built models, making them user-friendly and reducing the time required for model creation.
Financial Model Builders
Financial model builders are specialised tools or platforms that automate the creation of financial models. Examples include tools within ERP systems or specific financial modeling platforms like Fathom or LivePlan. These tools streamline the modeling process by using AI or predefined algorithms to build models based on user inputs, reducing the need for in-depth financial expertise.
Comparison Table
Feature | Financial Model Spreadsheets | Financial Modeling Software | Financial Model Builders |
Customisation | High | Moderate to High | Low to Moderate |
Ease of Use | Requires expertise | User-friendly with templates | Highly user-friendly |
Flexibility | Very flexible | Flexible with predefined options | Limited to predefined algorithms |
Automation | Low | Moderate to High | High |
Learning Curve | Steep | Moderate | Low |
Scenario Analysis | Manual setup | Integrated | Automated |
Reporting | Manual and customisable | Automated and customisable | Automated |
Cost | Low (software cost) | Moderate to High | Moderate |
Data Integration | Manual or limited | Advanced integration capabilities | Built-in integration |
Best Financial Modelling Software
Many Financial Modelling Software packages are available on the market, each with its own strengths and weaknesses. Here, we list the top 10 best Financial Modelling Software based on their popularity, functionality, usability, and customer reviews. We will briefly overview each software, highlighting its main features, benefits, and drawbacks.
1) Finmark
Finmark is a cloud-based Financial Modelling Software that helps startups and small businesses plan, manage, and optimise their finances. Finmark allows you to create and update Financial Models in minutes without coding or spreadsheet skills. Finmark also provides insights, recommendations, and alerts to help you achieve your financial goals.
Features:
a) Drag-and-drop interface to build and customise Financial Models
b) Pre-built templates and scenarios for various industries and use cases
c) Integration with accounting, banking, and payment platforms
d) Real-time data and analytics to track and improve financial performance
e) Collaboration and sharing tools to work with team members and Investors
Benefits:
a) Easy and intuitive to use, no coding or spreadsheet skills required
b) Fast and accurate, no manual errors or outdated data
c) Comprehensive and flexible, it covers all aspects of financial planning and management
d) Insightful and actionable, it provides guidance and feedback to optimise financial outcomes
e) Collaborative and transparent, facilitates communication and alignment with stakeholders
Drawbacks:
a) Relatively new and untested, it may have bugs or glitches
b) Limited customisation and integration options may not suit complex or specific needs
c) Subscription-based plans may be expensive for some users
2) Jirav
Jirav is a cloud-based Financial Modelling Software that helps businesses create and manage financial forecasts, budgets, and reports. Jirav enables you to connect your financial data sources, such as accounting, payroll, and CRM systems, and automatically generate Financial Models based on your assumptions and goals. Jirav allows you to visualise and analyse your financial data and share it with your team and stakeholders.
Features:
a) Data integration with various financial and operational platforms
b) Automated Financial Modelling and scenario analysis
c) Interactive dashboards and charts to display and explore financial data
d) Customisable reports and presentations to communicate financial results
e) Collaboration and sharing features to work with team members and stakeholders
Benefits:
a) Seamless and automated, with no manual data entry or calculations
b) Accurate and reliable, no human errors or data inconsistencies
c) Comprehensive and scalable, it covers all aspects of financial forecasting and reporting
d) Visual and interactive, it provides clear and engaging financial insights
e) Collaborative and secure, enables teamwork and accountability
Drawbacks:
a) Requires data integration and setup, which may take time and effort
b) Limited functionality and flexibility, may not support advanced or custom Financial Modelling
c) Subscription-based plans may be expensive for some users
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3) Quantrix
Quantrix is a desktop-based Financial Modelling Software that helps businesses and professionals create and analyse complex Financial Models. Quantrix uses a multi-dimensional approach, which allows you to create and manipulate Financial Models using natural language and formulas without relying on cell references or macros. Quantrix also offers a web-based platform, Quantrix Qloud, which allows you to access, share, and collaborate on your Financial Models online.
Features:
a) Multi-dimensional Modelling engine to create and edit Financial Models
b) Natural language and formula interface to define and calculate financial data
c) Scenario manager to compare and evaluate different financial scenarios
d) DataLink and DataPush to import and export data from various sources
e) Qloud platform to access, share, and collaborate on Financial Models online
Benefits:
a) Powerful and flexible, it supports complex and custom Financial Modelling
b) Intuitive and user-friendly, no cell references or macros are required
c) Dynamic and responsive, it updates and recalculates financial data automatically
d) Data integration and exchange connect with various data sources and formats
e) Online access and collaboration, work with team members and stakeholders online
Drawbacks:
a) Desktop-based software requires installation and maintenance
b) The steep learning curve may take time and training to master
c) License-based pricing may be expensive for some users
4) Cube
Cube is a cloud-based Financial Modelling Software that helps finance teams and businesses create and manage financial plans, budgets, and reports. Cube lets you connect your existing spreadsheets, such as Excel or Google Sheets, and transform them into a centralised and collaborative financial platform. Cube also provides tools and features to enhance your Financial Modelling and analysis capabilities.
Features:
a) Spreadsheet integration and synchronisation to create and update Financial Models
b) Data integration with various financial and operational platforms
c) Workflow and approval management to streamline and automate financial processes
d) Reporting and dashboarding tools to visualise and communicate financial data
e) Collaboration and sharing features to work with team members and stakeholders
Benefits:
a) Spreadsheet-friendly and familiar, no need to change or abandon existing spreadsheets
b) Data integration and automation, no manual data entry or calculations
c) Workflow and process optimisation reduce errors and delays
d) Reporting and visualisation provide clear and concise financial insights
e) Collaboration and alignment facilitate teamwork and transparency
Drawbacks:
a) Dependent on spreadsheets, may not support non-spreadsheet-based Financial Modelling
b) Limited functionality and customisation may not suit complex or specific needs
c) Subscription-based plans may be expensive for some users
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5) Oracle BI
Oracle BI is a cloud-based Business Intelligence and analytics software that helps businesses and organisations create and manage Financial Models, reports, and dashboards. Oracle BI enables you to connect and analyse data from various sources, such as databases, files, applications and web services, and generate insights and recommendations to improve your financial performance and decision-making. Oracle BI allows you to share and collaborate on your Financial Models and insights with your team and stakeholders.
Features:
a) Data integration and preparation to connect and transform data from various sources
b) Data analysis and discovery to explore and understand data using various methods and techniques
c) Data visualisation and storytelling to create and customise charts, graphs, and narratives
d) Data governance and security to manage and protect data access and quality
e) Data collaboration and sharing to work with team members and stakeholders
Benefits:
a) Data integration and analysis support various data sources and formats
b) Data visualisation and storytelling provide engaging and interactive financial insights
c) Data governance and security ensure data quality and integrity
d) Data collaboration and sharing enable teamwork and communication
e) Cloud-based and scalable, accessible and adaptable to changing needs
Drawbacks:
a) Complex and comprehensive, it may require technical skills and training.
b) Limited functionality and flexibility may not support advanced or custom Financial Modelling.
c) Subscription-based plans may be expensive for some users.
6) Synario
Synario is an advanced Modelling platform designed for financial analysis and strategic planning. It targets businesses and organisations looking to enhance their decision-making processes through robust Financial Modelling.
Features:
a) Dynamic Modelling capabilities that adapt to complex financial scenarios.
b) Interactive dashboards for visualising financial forecasts and outcomes.
c) Customisable modules to address specific industry or organisational needs.
d) Advanced what-if scenarios to explore different financial strategies.
e) Integration with existing financial systems for seamless data flow.
Benefits:
a) Provides deep insights into the financial impacts of strategic decisions.
b) Enhances accuracy in financial forecasting with dynamic scenarios.
c) A User-friendly interface allows for easy adoption across teams.
d) Supports strategic planning with data-driven insights.
e) Facilitates collaboration in financial planning and analysis.
Drawbacks:
a) It can be complex for users without a financial background.
b) Potentially high cost of implementation for smaller organisations.
c) It requires a time investment to leverage its advanced features fully.
7) IBM Cognos
IBM Cognos is a comprehensive Business Intelligence suite with data analytics and reporting capabilities. It's designed for businesses of all sizes to help them understand data and make informed decisions.
Features:
a) Extensive data integration from various sources.
b) Advanced analytics, including Artificial Intelligence (AI) and Machine Learning capabilities.
c) Customisable dashboards and reporting tools.
d) Real-time data processing for up-to-date information.
e) Mobile capabilities for on-the-go data access.
Benefits:
a) Enhances decision-making with data-driven insights.
b) Offers a holistic view of business performance.
c) Scalable to accommodate growing data needs.
d) Facilitates regulatory compliance through accurate reporting.
e) Empower users with self-service analytics.
Drawbacks:
a) It can be overwhelming and complex for amateurs.
b) It may require significant resources for setup and maintenance.
c) Integration with certain legacy systems can be challenging.
8) Mosaic
Mosaic is a strategic finance platform that provides real-time insights into business financials. It's tailored for modern companies looking to streamline their financial planning and analysis.
Features:
a) Real-time financial reporting and analysis.
b) Automated consolidation of financial data from multiple sources.
c) Scenario planning tools for forecasting and budgeting.
d) Collaborative workspace for team-based financial planning.
e) Customisable dashboards and KPI tracking.
Benefits:
a) Offers a real-time view of a company’s financial health.
b) Simplifies financial planning and reduces manual workload.
c) Enhances collaboration in financial decision-making.
d) Customisable to meet the needs of different businesses.
e) User-friendly interface for ease of use.
Drawbacks:
a) It may not cater to very specific or unique financial analysis needs.
b) As a newer platform, it might have fewer integrations than established products.
c) Subscription costs could be a consideration for smaller businesses.
9) Operis
Operis is a desktop-based Financial Modelling Software that helps businesses and professionals create and analyse complex Financial Models. Operis uses a spreadsheet-based approach, which allows you to create and manipulate Financial Models using Excel, with enhanced features and functions. Operis also offers a web-based platform, Operis Analysis Kit, which allows you to audit, review, and validate your Financial Models online.
Features:
a) Spreadsheet-based Modelling engine to create and edit Financial Models using Excel
b) Enhanced functions and formulas to define and calculate financial data
c) Model audit and review tools to check and improve the quality and accuracy of Financial Models
d) Model validation and certification services to verify and certify the reliability and robustness of Financial Models
e) Analysis Kit platform to access, audit, and validate Financial Models online
Benefits:
a) Spreadsheet-friendly and familiar, no need to change or abandon existing spreadsheets
b) Enhanced functions and formulas support complex and custom Financial Modelling
c) Model validation and certification provide assurance and confidence
d) Online access and validation, work with team members and stakeholders online
Drawbacks:
a) Desktop-based software requires installation and maintenance
b) Dependent on spreadsheets, may not support non-spreadsheet-based Financial Modelling
c) License-based pricing may be expensive for some users
10) Hyperion
Hyperion is a cloud-based Modelling Software that helps businesses and organisations create and manage Financial Models, plans, budgets, and reports. Hyperion enables you to connect and analyse data from different sources, such as databases, applications, files, and web services, and generate insights and recommendations to improve your financial performance and decision-making. Hyperion allows you to share and collaborate on your Financial Models and insights with your team and stakeholders.
Features:
a) Data integration and preparation to connect and transform data from various sources
b) Data analysis and discovery to explore and understand data using various methods and techniques
c) Data visualisation and storytelling to create and customise charts, graphs, and narratives
d) Data governance and security to manage and protect data access and quality
e) Data collaboration and sharing to work with team members and stakeholders
Benefits:
a) Data integration and analysis support various data sources and formats
b) Data visualisation and storytelling provide engaging and interactive financial insights
c) Data governance and security ensure data quality and integrity
d) Data collaboration and sharing enable teamwork and communication
e) Cloud-based and scalable, accessible and adaptable to changing needs
Drawbacks:
a) Complex and comprehensive, it may require technical skills and training
b) Limited functionality and flexibility, may not support advanced or custom Financial Modelling
c) Subscription-based plans may be expensive for some users.
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Conclusion
Financial Modelling software is a dynamic and multifaceted solution that assists in building and maintaining Financial Models for various purposes and domains. This Software can save you time, reduce errors, and enhance your decision-making process. This blog has reviewed the top 10 best Financial Modelling Software and compared their features, benefits, and drawbacks. We hope that this blog has helped you understand and appreciate the value and potential of Financial Modelling Software and that you will find the best Software for your needs and objectives.
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