Analysts are professionals using the best financial modeling software & tools to improve efficiency.
Financial modelling is not just about numbers, but about using them. These professionals analyse these numbers and create models to make smart decisions in business. Mostly about investing and planning for the future. But behind every great model is a powerful financial modeling software that makes it possible.
In this blog, we will walk you through the best financial modelling software & tools being used by analysts. Let us explore what each tool offers and how they are used in real finance roles. You will be able to decide on which ones are worth mastering.
Whether you are building your first model or looking to take your skills to the next level, the right tool can shape both your learning and your career.
Table of Contents:
Financial Modelling: An Overview
Financial modelling is the process of creating a model using Excel or Power BI. It helps you understand how money flows in and out of a company. We can forecast the financial performance, make investment decisions, evaluate business scenarios, and estimate the value of a company or a project using these models.
To understand, what is financial modeling? In simple terms, it’s all about finding your answer to “what if” questions in the business. For example,
- What if revenue grows by 10%?
- What if costs rise next year?
- What if we launch a new product line?
So, by adjusting the inputs, finance professionals can simulate different outcomes and make informed decisions.
These models are used by professionals anywhere in the industry. Especially from investment banking, equity research, startup planning, corporate finance, and forensic accounting. Model structures vary, but the one thing that remains constant is the aim to analyse raw data and extract actionable insights.
Whether you are a student preparing for interviews or an experienced professional willing to sharpen decision-making skills. Learning financial modelling will be among the most valuable things that you can do in your finance career journey.
What are Financial Modeling Software & Tools?
After getting an idea of what financial modeling is all about, let us know about the financial modeling software & tools. It refers to the platforms, applications, or programming environments used by analysts, whatever you want to call them.
These tools for financial modeling help you build, organise, and analyse financial models. They make it easier for you to work with numbers, create forecasts, visualise trends, and test different business scenarios.
The most common and the best financial modelling tools out of all is still Microsoft Excel, but there are many others introduced in the market. Today, professionals use a wide range of software. It ranges from cloud-based platforms like Causal and Jirav to coding tools like Python. These financial modelling tools have quickened the process of building more accurate and easier-to-share models.
The same financial data software or tool is not for everyone. Some financial modelling tools are designed for beginners and small startups. Others are built for large enterprises managing massive data sets across departments. The right tool depends on what you are trying to build, how complex it is, and who is going to use or understand it.
So, basically financial modelling tools take your raw data and turn it into something meaningful, be it your valuation report, a business forecast, or a funding strategy.
Why is Financial Modeling Software Important?
The importance of financial modelling software to businesses cannot be overstated. It forms an objective basis for decision-making, risk assessment, and strategic planning. Appropriate financial models will assist a company with determining how it can perform in the future, what investment opportunities it wishes to evaluate against others, and methods of raising funds for the investments. Financial modeling also helps companies discern their financial conditions and best use resources to support better financial planning.
Basically, the right financial modelling software can transform how you analyse data, make decisions, and plan ahead. So, here is a more detailed breakdown of why it matters:
Accuracy and Speed
The best financial modelling tools help reduce manual errors. It automates calculations and links data points properly. It leads to fewer mistakes and faster results, especially when dealing with large datasets.
Scenario Planning
Most financial tools allow you to create and compare different “what-if” scenarios. Whether you are testing a price increase or projecting funding needs. A good software lets you switch assumptions in seconds.
Visualisation and Dashboards
There are many tools for financial modeling, like Power BI or Causal, that turn raw numbers into charts and interactive dashboards. This makes your insights easier to understand, for you and your stakeholders.
Collaboration and Sharing
Cloud-based platforms like Google Sheets, Cube, or Jirav let multiple users work together in real-time, making it easier to update, review, and finalise models across teams.
Scalability
As businesses grow, so do their data and reporting needs. So, tools like Anaplan or Adaptive Planning can scale with complexity. It leads to offering secure workflows and centralised control over forecasts and budgets with the help of financial data software.
Career Relevance
Most finance jobs now expect candidates to know more than just Excel. Learning tools like Python, Power BI, or industry-specific platforms can give you an edge, and that’s why platforms like edZeb include them in their upskilling programs.
7 Best Financial Modeling Software & Tools for Analysts
With so many tools available today, choosing the right one depends on your goals, skill level, and the kind of financial analysis you want to do. Below are the seven best financial modelling software and tools for analysts,
1. Microsoft Excel
MS Excel is the most widely used financial modelling tool for Students, analysts, corporate finance teams, and investment bankers in the world. It is flexible, powerful, and works for almost every kind of financial model, from basic budgets to complex valuation and forecasting.
You can apply formulas, pivot tables, charts, scenario analysis, and a wide range of financial modeling templates in it. With time, it has become robust with add-ins like Solver and @RISK.
Undoubtedly, MS Excel is universally taught and accepted. It is highly customisable and supports all levels from beginner to expert. However, there are more chances of human error and version control issues when shared across teams. It is freely available with limited features, but you have to pay for its full version access.
2. Google Sheets
Well, Google Sheets is a free, cloud-based alternative to Excel. It is ideal for real-time collaboration and quick updates, especially for teams working remotely or on the go. You can access most Excel functions, along with cloud access, sharing with edit/view controls, and live collaboration.
It is ideal to be used by Startups, students, small business finance teams, and remote collaborators. It is a free-to-use, auto-saving, real-time teamwork, and seamless integration with Google Workspace. However, not as feature-rich as Excel; it can lag with large datasets.
You get it for Free with a Google account, but Google Workspace is available at a cost for businesses and is considered the best financial modeling software.
3. Power BI
The next powerful financial modeling tool used by analysts is Power BI. It is Microsoft’s business intelligence tool that helps you turn data into interactive dashboards and visual reports. While it’s not a traditional modelling tool like Excel. Power BI complements Excel by making reports easier to interpret.
It is apt for data visualisation, drag-and-drop dashboards, and integrations with Excel and SQL databases. Power BI is trending these days and is also popular among analysts and finance professionals who want to present models visually.
You can ideally use it for great for storytelling and data presentation. Power BI is good for trend analysis, but it cannot handle calculations or modelling logic like Excel. So it is better for reporting than building. Its pricing costs ~$10/month for the pro version, but its desktop version is available free of cost.
4. Python (with Pandas, NumPy)
A freely available open-source tool, Python is a coding language, as you know, but it gives you full control over financial analysis. It’s especially helpful when working with large datasets, automating tasks, or applying advanced statistical methods. Analysts, quants, data-savvy finance professionals, and those in fintech perform custom calculations, automation, forecasting models, data analysis, and machine learning.
It is also a powerful financial modeling tool that is scalable, open-source, and integrates well with databases and APIs. However, you must have coding knowledge and a steeper learning curve than spreadsheets.
5. Causal
Causal is a newer, cloud-based, but one of the best modelling software and tools. It combines the logic of spreadsheets with dashboards and charts. It’s specially built for financial teams who want to model and present without complex Excel setups. You will get scenario planning, live dashboards, plain-English formulas, and collaboration. Startups, CFOs, and professionals use it, especially those who do not want to use Excel but still need flexibility.
Causal is user-friendly, visual, built for collaboration, includes version history and live data inputs. But users found it less flexible than Excel for unusual calculations. It is a newer platform with a smaller user base, so it’s freemium with paid upgrades.
6. Jirav
Jirav is also on our list of the best financial modeling software & tools. It is an all-in-one cloud FP&A tool for startups and growing companies. It helps teams build budgets, forecasts, and investor reports, all without needing to master complex spreadsheets. It is ideally used by the startup founders, finance teams at SMBs, and accounting firms.
You will get to use pre-built financial modeling templates, collaboration tools, charts, and scenario comparisons in a clean interface that integrates with QuickBooks/Xero. You may not find it as customisable as Excel, but it is geared toward small-to-mid-sized businesses. Thus, it has a paid subscription, and the pricing depends on features and team size.
7. Anaplan
The last one on our list of best financial modeling software & tools is Anaplan. It is an enterprise-level modeling and planning tool. Most commonly being used by large corporations for connected financial planning across teams and departments. Due to its multi-dimensional models, real-time collaboration, and built-in workflows.
It is powerful for enterprise use, supports complex planning logic and large datasets. You may find it expensive due to its custom pricing for enterprise clients only. Moreover, it comes with a complex setup and requires training to use effectively.
Here is a comparison table listing the Best Financial Modelling Software and Tools with notable features for your key takeaways.
Features to Look for in Financial Modelling Tools
There are various types of financial models available in the market. Choosing the right financial modeling tools isn’t just about popularity. It’s about finding the right features that match your learning or your work needs. So, here are the key things you should look for:
Ease of Use
Whichever tool you are using must be easy to understand and navigate. If you are new to financial modelling, you should look for tools with a simple layout and clear instructions.
Automation Capabilities
The best financial modeling software & tools save alot of your time. So you should prefer financial data software with auto-updating data, built-in formulas, or code-based automation features (like in Python). Automation can speed up your work and improve efficiency by reducing mistakes.
Scenario Planning
The software you are using must have the ability to test “what if” situations. Make sure that the financial modelling software allows you to build and compare different scenarios easily.
Data Visualisation
The best financial modeling software & tools are up to date. They represent information in the form of charts, graphs, and dashboards to help explain your model better. So, using the best tools for financial modeling, like Power BI or Causal, is great for turning numbers into visuals.
Collaboration Support
If you are working in a team or sharing your models with others, cloud access and real-time editing features (like in Google Sheets or Jirav) can be really helpful.
Scalability
Your tool should grow with your needs. If you’re starting small but plan to work on bigger or more complex projects later, pick something that can handle that growth, like Excel, Python, or Anaplan.
Affordability
Finally, choose a financial data software that fits your budget. Some tools are free, some offer student discounts, and others come with a monthly cost.
Refer to the table below showcasing the skill level vs. tool suitability.
Conclusion
Financial modelling is a must-have skill for anyone in finance today. But having the right software makes a huge difference. It can make your work faster, easier, and more accurate.
Talking about the tools, Excel remains the go-to tool for most of the analysts. But platforms like Power BI, Python, and newer tools like Causal and Jirav are also quickly gaining ground. The best financial modeling software and tools for you depend on your goals, comfort level, and the kind of modelling you are doing. So, you must compare the features of these tools along with your requirements before using any of them.
At edZeb, we make sure our learners understand how financial models work. Also, how to build them using the tools like the analysts, that top companies rely on. So if you are planning to upskill or start your journey into finance, learning the right tools is the smartest first step.
FAQ’s
Is SQL used for financial modeling?
Yes, SQL is used in financial modeling for accessing, managing, and analysing large datasets, to build financial models.
Can you automate financial modeling?
Yes, you can automate financial modeling. Automation reduces the chance of errors. Thus, improving efficiency in calculations, analysis, and reporting.
What does a financial model show?
A financial model shows a company's past, present, and potential future financial health.
How much do financial modeling tools cost?
Well, it is not a good idea to inform about the financial modeling tools cost as it depends on the tool used. So the cost of financial modeling tools varies.
