Financial modeling is the process of analyzing a company's financial data to understand its past, present, and future financial performance. This is done by collecting and evaluating historical data and then using this data to create financial models that predict the company's future financial performance.

Financial modeling tools are essential for creating these models, as they allow users to easily and efficiently manipulate financial data.

Why is it important?

  • It can help companies to identify trends in their financial performance.
  • It can help companies to make better financial decisions.
  • It can help companies to raise capital.
  • It can help companies to attract investors.
  • It can help companies to manage their risk.

Financial modeling tools: What are they? How can they help? 

Financial analysts use financial modeling methods to estimate the worth of a firm or the viability of a project. The software's principal function is to forecast certain business situations in order to maximize profitability and opportunity.

Here are some tools to aid you with financial modeling:

1. Cube

Cube presents a pioneering FP&A software platform that streamlines data automation, validation, and oversight at the click of a button. Existing integrated spreadsheets within your business model can be transformed into actionable data, freeing financial teams from manual tasks to focus on analysis and growth.

By automating manual workflows, Cube minimizes errors, enhances collaboration, and accelerates informed decision-making. With a rapid onboarding process, often within two weeks, and competitive pricing, Cube offers swift time-to-value.

Key Features:

  • Automated Data Consolidation: Effortlessly combine data from diverse sources for automated rollups and drill-downs.
  • Multi-Scenario Analysis: Seamlessly model the impact of assumption changes on overall outcomes.
  • Customizable Dashboards: Construct and share tailored dashboards to suit your needs.
  • Native Excel and Google Sheets Integration: Bi-directional compatibility with spreadsheets.
  • Multi-Currency Support: Evaluate financials in local and reporting currencies.
  • User-Based Controls: Ensure accurate data distribution with user controls, validations, and an audit trail.
  • Centralized Formulas and KPIs: Manage calculations from a single, dependable source.
  • Drill down and Audit Trail: Delve into transactions and data history with a single click.

Pros:

- Empowers department leaders to devise scenarios and forecasts.

- Establishes a singular data source for accuracy.

- Integrates seamlessly with existing spreadsheets, various business functions, and tools.

- Time-saving automation for mundane tasks.

Pricing: Begins at $1,250/month for lean finance teams, and $2,450/month for companies aiming to scale. Detailed pricing is available.

2. Oracle BI

Oracle BI collaborates seamlessly with other Oracle products, furnishing comprehensive visual analytics and calculations across sales, HR, and supply chain functions. The platform amalgamates machine learning and artificial intelligence with data, empowering decision-making and predictive insights.

Key Features:

1. Secured Data Warehousing: Offers a secure repository for user data.

2. Remote Storage and Server Capability: Facilitates remote storage and server functionalities.

3. At-a-Glance Dashboard: Presents a comprehensive dashboard for quick insights.

4. Ad-Hoc Reporting with Predictive Analysis: Empowers ad-hoc reporting with predictive and profitability analysis.

Pros:

- Visual Reports with Single Dataset: Easily build visual reports using a single dataset, distributable to multiple sources.

- Leverage Existing PL/SQL Code: Incorporate existing PL/SQL code for enhanced functionality.

- Report Reusability: Save reports for recurrent usage.

Cons:

- Steep Learning Curve: Particularly for non-Oracle users.

- Visual Appeal: Reports may lack the visual attractiveness found in other BI products.

- Support Challenges: Limited support may pose difficulties.

Pricing:

While exact pricing isn't openly listed, sources indicate Oracle offers three plans:

1. Smaller Businesses: Ranging from $10-50 monthly for a single account and scaling to $300-$500 for multiple accounts.

2. Medium-Sized Businesses: Varied costs, between $50-500, adaptable based on specific needs.

3. Larger Businesses: Software package costs between $500-$10,000, with individual accounts possibly as low as $60.

3. Jirav

Jirav strives to enhance financial planning through swift collaboration. By employing driver-based budgeting models, users merge organizational data for predictions and forecasts, encouraging real-time feedback and teamwork.

Key Features:

1. Financial Forecasting and Cash Flow Projections: Enable insightful financial predictions.

2. Workforce Planning with Data Modeling: Incorporate data-driven workforce planning.

3. Executive Summary Report with Custom KPIs: Access a comprehensive report with tailored KPIs.

4. Integrations for Payroll, Accounting, and General Ledger: Seamlessly connect various functions.

Pros:

- Pre-Built Formulas and Templates: Utilize ready-to-use formulas and templates.

- Forecast Roll Forward without Spreadsheets: Streamline data roll-forward without relying on spreadsheets.

- Customizable Dashboards: Tailor dashboards for both financial and non-financial data.

Cons:

- Steeper Learning Curve: May require more time to master.

- Limited Visualization Variety: Offers fewer visualization options.

- Suited for Smaller Businesses with Budget Flexibility: Ideal for smaller businesses with a higher budget.

Pricing:

- Starter: $500 per month.

- Pro: $1000 per month.

- Enterprise: Contact for a custom quote, catering to extensive planning needs and premium integrations.

4. Finmark

Finmark facilitates growth planning for businesses through accurate financial modeling. Tailored for smaller businesses and startups, it provides valuable guidance for creating hiring strategies, fundraising goals, and scenario planning.

Key Features:

1. Customizable Models with Multiple Scenarios: Customize models with various scenarios.

2. Collaborative Financial Teamwork: Encourages team collaboration on financial aspects.

3. Metric-Specific Visualization Options: Visualize specific metrics for better insights.

4. Fundraising and Budgeting Planning: Streamline planning for fundraising and budgeting.

Pros:

- Enhanced Financial Planning and Forecasting: Elevate financial planning accuracy and forecasts.

- Comprehensive Data Search: Enables efficient searching across multiple data points.

- User-Friendly Interface: Intuitive and easy-to-use platform.

Cons:

- Limited Integrations: Integration options are restricted.

- Moderate Learning Curve, Limited Help Resources: The learning curve is steeper, with limited help documentation.

- SaaS Focus: Primarily designed for Software-as-a-Service (SaaS) companies.

Pricing:

Finmark's pricing correlates with your company's annual revenue. Ranging from $50 to $250 per month, the cost corresponds to revenue levels, providing tailored affordability.

5. Quantrix

Quantrix, an integrated modeling platform, streamlines decision-making by focusing on safeguarding financial data interactions for large-scale enterprises.

Key Features:

1. Real-Time Alert System: Offers alerts for potential errors or miscalculations.

2. Collaborative Cloud Modeling: Utilizes cloud-based collaboration for modeling.

3. Template-Based Model Creation: Facilitates model drafting through provided templates.

4. Integrations with Other Platforms: Seamlessly integrates with various platforms.

Pros:

- Enables Forecasting and Scenario Analyses: Construct forecasts and perform multiple-scenario analyses.

Cons:

- Limited Visual Data Representations: Offers fewer visual data depictions.

- Steep Learning Curve for Non-SQL Professionals: Users unfamiliar with SQL may find it challenging to learn.

Pricing:

While exact pricing isn't disclosed on their website, sources indicate an annual cost of over $2,000.

Explore these cutting-edge financial modeling software tools to make informed decisions and drive your business forward. Find the perfect tool for your needs and unlock the potential of data-driven insights today!