Technology has revolutionized financial practices with a rapid pace of innovation. One key impact area is business modeling, where financial modeling software and tools have made it easy for businesses to streamline their processes.
Before we provide you with the list of trending financial modeling tools for 2022, we would like to ask you something: Wouldn’t it be nice if we were able to assess the consequences of our next big decision?
If you are an aspiring entrepreneur looking for a sustainable financial future for your startup, you need to ask yourself four basic questions:
• Am I interested in a financially secured future?
• Am I looking for investments?
• Do I want to be rich?
• Is going bankrupt a bad idea?
If you have answered yes to either of these questions, we would like to inform you that financial modeling is the answer you have been looking for. It helps you with the necessary knowledge to make the right business decisions.
What is Financial Modeling?
Financial modeling might sound intimidating to many, though it is a straightforward concept to grasp. Stay with us as we aim to familiarize you with the idea and some trendy software to make one for your business.
In simple words, financial modeling is an abstract representation of an organization’s real-world world financial situation or its assets. This mathematical model is used to represent financial performance and project inflows.
The respective department can predict the future inflow of investment as well as the financial performance of the company based on the data. The money managers rely on forecast theories and valuations resulting from the financial modeling to redirect the business activities.
The forecasting is usually based on historical data, future performance predictions, and analysis of critical financial statements. A typical model would analyze the income statement, balance sheet, cash flows statement, and supporting schedules.
Advantages of Financial Modeling
We all love a product or service that benefits us in more than one way. The financial model is that “all-in-one “financial solution for your business that helps you in several areas.
• You would no longer have to stalk your competitors to know whether or not you’re ahead of them in the league
• Generate impeccable financial reports to land the investment of your dreams
• Say goodbye to the sleepless nights caused by the financial risks associated with your decisions
• Set your priorities straight with the proper budget for your company based on immaculate data.
Financial Modeling Software and Tools
As much as you are intrigued with the idea of opting for such a model, it brings two questions to the table:
1. Do we have the time to waste on learning and executing this seemingly complex concept?
2. Do we need to hire additional help to guide us through this?
We understand that we seldom involve ourselves with complex and tedious processes in today’s fast-paced market. Hence, we share a few leading and trending financial modeling tools that you can use to quickly adapt to financial modeling for startups without making you waste hours looking for the right tool for the right solution.
Note: The price range for the software products may be absent as a standard practice of software sellers to not share the price package for the products being offered.
1. Microsoft Excel
Excel is the favorite tool for most startups when it comes to financial modeling. It is simple and has an interface we are all familiar with. You can resort to Excel because of the diverse set of features it offers to build your financial model from scratch.
However, as tempting as it is, manually customizing your model is more prone to errors than opting for specialized software. If you’re someone with an aptitude for excel formulas, shortcuts, and the software – it shouldn’t be difficult for you; otherwise, keep scrolling for more intuitive options.
2. Quantrix:
Quantrix is a leading software that effectively provides financial modeling solutions and caters to your business needs. Their top product identifies the inherent risks associated with manual spreadsheets and offers the flexibility necessary for powerful integrated models.
It allows you to import data from other platforms, make it interoperable, and help visualize data for easy explanation. However, the only drawback would be their outdated UI, which could improve.
It enjoys a 4.5/5 rating on the leading software review sites.
3. Maplesoft:
Maplesoft is another software that helps you create financial forecasts and provide the necessary tools to help you build your financial modeling according to your business requirements. It effortlessly combines a powerful mathematics engine with a user-friendly interface, making analyzing, exploring, and visualizing financial modules a lot easier even for beginners.
Maplesoft is perfect not only for beginners but also for people who prefer a clean and easy-to-use interface. While it is very intuitive, Maplesoft is syntax sensitive and has a learning curve before you can get to the good stuff.
The software has a rating of 4.5/5 by the existing users.
4. Carta:
Carta is financial modeling software that helps aspiring entrepreneurs design a scenario model to help understand the flow and impact of investments and exits. It assists you in understanding your company’s portfolio and its potential post- investment dilution, valuation, and outstanding options available for you.
It is also an automated system that tracks progress and breaks down the legal language into simple and understandable jargon. It sounds like a complete package.
The best part is that it’s a free platform with startup tools for early-stage entrepreneurs with a 4.5/5 rating.
5. Numberly
If you like simplicity coupled with rich insights, Numberly is the product for you. It helps you validate your business strength through financial plans fit for fundraising, forecasting, and daily operations. It also enables you to track blind spots and make the right business decisions.
Numberly has very flexible pricing as it offers three distinct packages – ranging from $1,000 to $2,000.
The packages cover product/services revenue streams, five-year projections, Pro forma (P&L), balance sheet, cash flow statement, dynamic input, customer acquisition funnel, and investor-ready graphics.
Numberly enjoys a sterling 4.5/5 rating at Trustpilot.
Click here to request a no-obligation consultation session!
6. Quickbooks:
Quickbooks aims at reducing financial complexities and procedural hazards for startups. You could use it to generate reports, track expenses, raise invoices, and customize the entire financial stream.
Quickbooks has been a user favorite for a while, and we understand why. You wouldn’t have to keep stacks of sheets and get in the hassle of manually creating spreadsheets with this one. It is easy to learn and provides interoperability and easy integrations.
Quickbooks, however, is recommended for small-scale applications and lacks features for business-specific tasks such as barcode scanning and lot tracking.
The price ranges from $20 to $150 per month, with a sterling 5-star rating.
7. DeFacto Planning:
Defacto covers all the financial bases for your business by providing analysis and forecasting services and making budgeting a lot easier for you. You can access your current financial performance and predict the impact your decisions will have on the financial status of your business.
Their Casual package is free of cost to set you up on the journey of creating models for your business with 3.7 stars out of 5.
8. Oracle Hyperion Financial Management:
Oracle is known for making state-of-the-art software systems, and Hyperion is amongst those. Hyperion financial management helps in analyzing and generating financial reports for you. It makes consolidation a hassle-free task for your business.
You wouldn’t have to hire additional help to make reports for you, reducing the possibility of any human error. Hyperion offers Excel data integration and forecasting and has rich reporting and budgeting features.
One may think that there would be a steep learning curve with software so complex. However, Oracle has made sure to make things simple for you. The interface is intuitive, and users can quickly grasp the workflows, making it amongst the most coveted financial modeling tools.
The last quoted price for Hyperion Financial Management Plus was $5,200 per year with 3.5 stars out of 5.
9. Oracle BI:
BI is another Oracle product that is on the top of its game. Oracle BI is a program that helps you comprehend the basics of financial modeling and analytics and integrate the financial expertise within you to help you build a sustainable future.
With the ease of use, high-quality visualization, integration of modern analytic tools, and 4.1/5 rating, Oracle BI could be your go-to financial modeling tool.
10. Operis:
Operis is another business tool that simplifies the complexities of audit and modeling designs according to your needs and requirements.
Auditing your financial reports and performance can be a massive hassle if you kickstart your business and already have a lot on your plate. Their analytics tool kit ranges from £159.99 to £311.66/year.
11. IBM Cognos
As intimidating as numbers can be, decisions based on data rather than intuition are always more accurate as it bears fewer risks for the stability of your business.
IBM Cognos helps you build reports, financial models, and budgets for more informed and data-backed decisions. While it may sound like just a dashboarding system, IBM Cognos is a lot more than that. It allows users to schedule their reports, collaborate with others, and customize the formatting.
We hope that this list of financial modeling tools has provided you with many options to explore and make a suitable model for you. Financial reporting and numbers games look frightening at first but should be a breeze with the right tools in your arsenal.
At Numberly, we are committed to helping founders manage their ventures with the right financial wisdom and insights. If you are looking for clarity, business intelligence, and a customized business model for your business, get in touch with us and book a no-obligation consultation session.
