5 Best Financial Modelling Software Compared

Businesses today use many tools to help make financial decisions more efficiently and faster. These can either be through spreadsheets, software or other tools which are useful. One way these decisions can be made is from financial modelling using financial modelling software.

While spreadsheets and manual calculations were once the norm, technology has enabled digital solutions that execute commands in an instance with greater accuracy and efficiency than ever before.

In this article, we’re going to share what financial modelling software is, the benefits of financial modelling, and the applications of financial modelling for any business.

We will also explore some of the best financial modelling tools to choose from when it comes to automating your business and making better decisions.

Coming Up

1. What is Financial Modelling Software?

2. What are the Benefits of Financial Modelling?

3. What are the Features of Financial Modelling Software?

4. What is the Best Financial Modelling Software?

5. What are the Differences of Financial Modelling Spreadsheets vs Software?

6. What are Applications of Financial Modelling Software?

7. Wrap Up

What is Financial Modelling Software?

Financial modelling is a program designed to show the relationship between finance and business operations in order to showcase favourable and unfavourable situations, explore financial decisions in advance, and come to conclusions of how a business can plan ahead for certain circumstances.

To execute financial modelling, it requires data on expenses, revenue, and payroll. In most businesses, this means you have to collect data from disparate sources.

One of the best aspects of a financial modelling software is that it connects data from all of these sources to create a central hub of information. This way the information can “speak” with one another so stakeholders and business leaders are able to develop a robust and accurate financial model so the business can make more informed decisions.

What are the Benefits of Financial Modelling?

Let’s talk about the benefits of financial modelling and what it can do for your organisation. For starters, having a financial model can improve efficiency within your business units, help unlock valuable insights, and build trust with stakeholders such as investors.

There are still businesses that rely heavily on spreadsheets. If you are one of them, you may want to reconsider how you calculate your financial data so you are no longer relying on manual processes, that are time consuming and error prone.  

If you’re considering a financial modelling software for your business, here are both the short term and long term benefits you stand to gain:

• Help improve the organisation’s understanding of what a business offers, challenges, competitive landscape, and more.
• Reduce the risk of how certain courses of action can affect a businesses’ financials.
• Provides a baseline for future performance, meaning that the financial modelling will show if the business is on track for growth or not.

A financial automation tool like SolveXia can help you streamline reporting, reduce manual time in spreadsheets, and manage financial modelling!

What are the Features of Financial Modelling Software?

There are many features which make financial modelling software a useful tool for your business. If you are looking to save more time, create more efficiency, or even perform top notch calculations then you will want to consider looking into financial modelling tools.

Here are some features to keep an eye out for:

1. Time-Efficient:

Working manually can be time consuming and a waste of your company’s resources. The software is able to analyse any form of data in less time it would take you to sort through the data manually.

2. Large Database:

The best financial modelling software provides a way for an organisation to store data of any size and create as many financial models as needed without data being stolen.

3. Enterprise Accessibility:

The financial modelling software is developed in a way where you are able to access reports and data from anywhere in the world. In addition, other operational models can be linked with financial models to provide deeper analysis.

4. Next Generation Business Plan:

Financial modelling software offers your organisation several financial, operational, and economic scenarios, thereby providing data insights to your business for future planning. Software is also built in a way to keep data secure.  

5. Accurate Calculations:

The software helps with making more complex calculations easier to understand. The calculations are free of error and help guide your business to make better decisions.

What is the Best Financial Modelling Software?

If you’ve ever considered implementing a financial modelling software for your organisation, chances are you’re stuck using manual spreadsheets, still performing manual calculations, or not having the financial insights you need. Whatever the case may be, there are ways to combat and improve this part of your business.

When seeking a way to improve your business’ operations and forecasting abilities, you’ll come across a wide array of financial modelling software options. Here’s a breakdown of some of the most popular tools worth exploring:

1. SolveXia

SolveXia helps businesses transform reconciliations, revenue management, expense analytics, regulatory reporting and more, using its powerful financial automation suite.

By deploying SolveXia, you are able to automate repetitive data reporting, leverage more accurate data to improve your business, and drive operational excellence. With deep analytics and modelling capabilities, you can future-proof your business while saving your workforce time in having to manually perform time-consuming calculations and data collection.

2. Oracle BI

Oracle BI is a business intelligence software which helps turn financial data sets into analytics. With it, you gain access to visual analytics and calculations for sales, HR and other business units.

Moreover, you can use this tool as a machine learning platform to help to create predictable financial models for the future.

Empower your data engineers and data scientists by helping them access and processing relevant data, evaluating predictions, and making quicker, more effective decisions.

3. Jirav

Jirav offers a robust, faster, more collaborative financial planning designed to support planning and reporting for your business.

You can use Jirav to help make automated calculations and data visualisations, ensuring that your models and reports are useful for any stakeholders. Jirav is a great solution if you’re a growth company, an accounting firm, or a VC-founded startup.

4. IBM Cognos

IBM Cognos is an artificial intelligence-based financial modelling platform with drag and drop capabilities. You can create financial models for calculator risk and share insights gained with members of your organisation.

Start to automate data preparation, data discovery and visualisations to ensure confident decisions for your business.

5. Quantrix

Quantrix provides one-click financial forecasting which can help you keep track of KPIs and possibly find situations which can put your business at risk.

Using Quantrix, you would no longer struggle with spreadsheets, but instead, you'd have interactive dashboards, the ability to manipulate data structures and automate tasks for financial modelling.

This is a great alternative solution if you’re still stuck using Excel spreadsheets for your financial modelling.

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All of these tools mentioned above are easy to implement, quick to start, and super efficient. You no longer will have to worry about manually tracking calculations in your business or trying to improve operational efficiency.

Start making quicker financial forecasts and pivot your business better with the aid of financial modelling software. To get started and try a finance modelling tool like SolveXia out today, request a demo!

What are the Differences of Financial Modelling Spreadsheets vs Software?

Many businesses today still use spreadsheets as the main solution. Spreadsheets are a great place to start because they are widely known, accessible to everyone, and there’s a low cost to begin with.

But there’s a slight catch- they’re not as efficient and their effectiveness is usually dependent on the expertise of the team using them.

There are advantages of using a financial modelling software over a spreadsheet. On a high level, software would allow you to streamline processes and be more user-friendly for you. Here are some benefits of using a financial modelling software:

• Less of a learning curve since the software is user-friendly that is designed to improve accuracy and speed.

• Automated reporting that can be updated and shared with stakeholders with no manual input.

• Software can help with comparing insights over time along with built-in filtering, comparison and sorting tools.

• Reduce the risk of error and help improve workflow without needing to manually download anything.

• Reporting and graphs which are highly visual and can help show trends and patterns to help you make faster decisions.

What are Applications of Financial Modelling Software?

There are various applications of financial modelling software which can be applied to your business. Rather than having to learn how to build a financial model from scratch, you can use the financial modelling tool to accomplish the following:

1. Cash Flow: A report that shows the financial strength and stability of a company based on available assets and liabilities.

2. Capital Budgeting: Process of estimating calculations in your business to find out if certain assets or investments of a company should be financed through debt or a company’s own funds. If done manually, this would take up a lot more time than using a financial modelling software.

3. Financial Risk Modelling: This involves a combination of mathematics and economics to identify possible threats to a financial portfolio. Since this can be very time consuming, it’s important to use the best financial models, tools and techniques to be more efficient in your business.

4. Option Pricing: Calculating the correct price of shares, etc. The calculations are based on assumptions such as intrinsic value of money and time value of money.

5. Algorithmic Trading: These are commands assigned to a computer to purchase or sell stocks in the market according to certain criteria.

Wrap Up

Financial modelling software is a game changer for any business. With its abilities to automatically relate finance and operation within a business, it helps to lead to operational efficiency and enables informed financial decisions.

If you’re looking for a solution that reduces manual time in spreadsheets as well as maximises your business’ functions using automation, you can turn to a financial modelling tool like SolveXia!

A tool like SolveXia can save you time, reduce manual errors and help improve your business’ operational efficiency leading to better informed business decisions. Request a demo today and see how your business can use financial modelling software to enhance reporting and insights.