Top 7 Financial Modeling Software For Finance Professionals
A business with the potential to grow beyond its current position requires a financial model. Without one, growth is simply dependent on the leadership of the company itself. Financial modeling is a critical part of the business process that helps technical experts, financial decision-makers, and their managers make better decisions about the long-term future of their businesses. Financial models are used for budgeting and forecasting by analysts as well as executives to analyze financial viability, capital allocation, risk, and opportunity. Today we will cover the top financial modeling software that helps financial analysts and makes their jobs easier.
If you’re thinking about launching your own startup, then you will naturally have questions regarding how to turn these ideas into reality. The answer to this question and many others like it lies in financial modeling software. Financial modeling software is an essential tool used by finance professionals and even small businesses to create financial models. Financial modeling software helps in the accurate and credible estimation of expected revenue and profit for the company, personal and public financial management, capital budgeting, and financing. Today, in this article you will get top financial modeling software that will make your work easy.
What is Financial Modelling?
Financial modeling is the process of building a financial representation of a real-world financial situation. This model is typically created in a spreadsheet and can be used to project future performance, analyze scenarios, and make decisions. Financial models are often used in business, finance, and economics to represent the performance of a financial asset or portfolio of assets. They can be as simple as a spreadsheet with a few calculations or as complex as a multi-sheet model with detailed assumptions and calculations. Financial modeling can be valuable for various applications, including business planning, financial analysis, and investment management.
Financial models are employed when attempting to value a company or contrasting it with others in the same sector. It is a tool used by financial analysts to explain or foresee the effects of events on a company’s stock, including internal and external elements like changes in economic policy or regulations and internal factors such as a change in strategy or business model.
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Need for Financial Modelling
Financial modeling creates a numerical representation of a financial situation or financial system. It is a tool used to forecast the future performance of a business, project, or financial asset using data from the past and present. Financial modeling is often used to evaluate a project’s feasibility, determine the potential value of an investment, or compare the performance of different investments.
Many financial models are designed to address a specific business need or decision. Some common uses of financial modeling include:
Business Planning and Forecasting – Financial models can be used to forecast the future performance of a business, including revenue, expenses, and profits. It can help enterprises to identify potential growth opportunities or develop strategies for improving financial performance.
Capital Budgeting – Financial models can be used to evaluate the potential returns of different investments, such as the purchase of new equipment or the expansion of a business. It can help a company make informed decisions about allocating its capital.
Valuation – Financial models can be used to determine the value of a company, investment, or other financial assets. It can be helpful for investors trying to decide whether to buy or sell a purchase or for businesses trying to determine the value of their assets.
Risk Analysis – Financial models can be used to assess the risk associated with different investments or business decisions. It helps companies identify potential sources of risk and develop strategies for managing or mitigating those risks.
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Who are Financial Analysts?
Financial analysts may also be known as securities analysts or investment analysts. Financial analysts guide businesses and individuals in making investment decisions. They use their expertise in financial analysis to evaluate the performance of bonds, equities, and other investments. Financial analysts typically have a strong understanding of economics and finance and use this knowledge to make informed predictions performance of investments. They may work for banks, investment firms, or other financial institutions or be self-employed.
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Skills Required to Become a Financial Analyst
Financial analysts assess the financial performance and stability of businesses, organizations, and financial assets. They use various tools and techniques, including financial modeling, to evaluate the past, present, and potential future performance of financial assets and recommend to others whether to purchase, sell, or keep those assets.
Several skills are essential for financial analysts to succeed in their roles. These skills include:
Analytical Skills – Financial analysts need to be able to analyze and interpret financial data and use that data to make informed decisions.
Communication Skills – Financial analysts must clearly and effectively communicate their findings and recommendations to others verbally and in writing.
Mathematical Skills – Financial analysts must have strong mathematical skills to work with complex financial data and perform financial calculations.
Attention to detail – Financial analysts must be detail-oriented to accurately analyze and interpret financial data.
Problem-Solving Skills – Financial analysts need to be able to identify and analyze problems and develop practical solutions.
Time Management Skills – Financial analysts often work on multiple projects at once, and they need to manage their time effectively to meet deadlines.
Computer Skills – Financial analysts must be proficient in computer programs and systems, including spreadsheet software, financial modeling software, and databases.
Research Skills – Financial analysts need to be able to conduct thorough and accurate research to gather and analyze financial data.
Commercial Awareness – Financial analysts need to understand business and economics well to make informed decisions about financial assets.
Adaptability – Financial analysts need to be capable of picking up new skills and adjusting to new circumstances as necessary to be successful in their roles.
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Types of Financial Analysts
There are different kinds of financial analysts with various job titles in the general financial analyst career path. Depending on the needs and the size of financial institutions, the financial sector employs many people.
Following are the different types of financial analysts:
Investment Analysts – Also known as securities analysts or equity analysts, these analysts specialize in evaluating the financial performance and potential of companies to make investment recommendations to clients.
Credit Analysts – These analysts assess the creditworthiness of individuals, businesses, or governments by analyzing their financial information and ability to make debt payments.
Market Analysts – These analysts study economic, industry, and market trends to inform investment decisions. They may also provide commentary and analysis on market conditions to clients or the media.
Quantitative Analysts – Also known as “quant” analysts, these analysts use advanced mathematical and statistical techniques to analyze financial data and make investment decisions.
Industry Analysts – These analysts specialize in a particular industry, such as healthcare, technology, or energy, and provide analysis and recommendations related to that industry.
Financial Planners – These analysts provide financial planning and budgeting advice to individuals and families. They may help clients develop plans to save for retirement, pay for education, or meet other financial goals.
Government Financial Analysts – These analysts work for government agencies, such as the Department of Treasury or the Securities and Exchange Commission and may be responsible for tasks such as analyzing budget proposals, monitoring financial markets, and regulating financial institutions.
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Responsibilities of a Financial Analyst
Financial analysts analyze financial data and information to help businesses, organizations, and individuals make informed financial decisions. It includes:
- Analyzing financial statements and reports to understand a company’s financial health and performance. They also use top financial modeling software to increase performance.
- Identifying trends and patterns in financial data and using this information to make predictions and recommendations.
- Evaluating investment opportunities and providing recommendations to clients or decision-makers.
- Monitoring economic, industry, and market trends to inform investment decisions.
- Preparing reports, presentations, and other materials to communicate financial analysis and recommendations to clients or decision-makers. By using top financial modeling software, they enhance the quality of their work.
- Providing financial planning and budgeting advice to businesses and individuals.
- Keeping up with advancements in the sector and maintaining professional credentials.
Financial analysts may work in various industries, including banking, consulting, insurance, and asset management. They may also specialize in a particular type of analysis, such as equity research, credit analysis, or market analysis. They also use top financial modeling software so to maintain accurate financial models to forecast the performance of financial assets and make informed investment decisions.
Top 7 Financial Modeling Software
Financial modeling software is a tool that helps financial analysts and investors create a financial model to forecast the performance of a financial asset or portfolio of assets. Financial models are used to evaluate a company’s performance, security, or investment and to make informed decisions about investing in or lending to that entity. Top financial modeling software can help users build complex financial models more efficiently and accurately by providing functions and features such as spreadsheet templates, built-in financial formulas, and data visualization tools. It can also help users automate updating and maintaining the financial model by providing features such as real-time data feeds and automatic recalculation of formulas. Financial modeling software can be a valuable tool for anyone involved in financial analysis, decision-making, or portfolio management.
The first in the list is Oracle BI (Business Intelligence). It provides visual analytics and computations for sales, HR, supply chain, and other areas, Oracle BI works closely with other Oracle products. The platform applies artificial intelligence and machine learning to data to support forecasting and decision-making. The application’s built-in features enable you to create remarkable financial models. Microsoft has combined the features of Power BI into a single, powerful application that incorporates those from PowerPivot, PowerQuery, Access, and Excel.
- Provides users with safe data warehousing
- Provides remote server and storage capabilities.
- Includes a dashboard with quick access to Ad-hoc reporting with profit analysis
- A single dataset can be used to create visual reports that can be sent to several sources.
- Utilize current PL/SQL code
- Keep reports for future reference.
- The steep learning curve, particularly for companies not currently using Oracle products
- Reports need to have a higher level of appeal than other BI tools.
- Support is inadequate
- Prices for Smaller Businesses – Range from ₹850/- to ₹4,000/- per month for a single account but can rise to ₹25,000/- to ₹40,000/- for numerous accounts.
- Medium-Sized Businesses – The program’s cost ranges from ₹4,000/- to ₹40,000/-, though it varies based on needs.
- Larger Businesses – The software bundle costs between ₹40,000/- and ₹8,30,000/- while a single account starts at just ₹5,000/-.
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IBM Cognos is a program that collects, organizes, and analyses data using IBM Watson. It offers user-generated reports, automated data preparation and exploration, and data visualizations of present and future business activities. It produces a financial planning solution that is extremely complementary. In order to forecast the future, users can use Analyst and Contributor to import past actuals acquired in IBM Cognos Finance.
- Imports information from CSV and spreadsheets
- Reports using connections to local or distant databases and AI features
- Locally and remotely, dynamic draught dashboards.
- Increases data preparation speed using AI
- On-site or cloud-collected data
- Using interactive dashboards to convey data visually
- Users claim that rather than enhancing the current product, there is an emphasis on introducing new functions.
- Reports may contain errors that need to be corrected.
- Integrations across applications are limited.
With subscriptions, monthly cloud usage for 1 to 200 users starts at ₹850/-. You’ll need to get in touch with more users to get a quote.
Finmark assists businesses with growth planning by creating precise financial models. It is the most incredible option for startups and smaller companies looking for assistance developing hiring strategies, fundraising objectives, and scenario planning. It interacts with the entirety of your stack to effortlessly reconcile actuals. There are integrations for payroll services like Gusto & ADP, payment processors like Stripe, and accounting applications like QuickBooks & Xero.
- A customized model with many scenarios
- Teamwork when it comes to finances
- Options for specific metrics’ visualization
- Budget and plan for fundraising
- Improved budgeting and forecasting
- Can search for several data points
- Simple to use and intuitive
- Only a few integrations
- More significant learning curve but fewer aid resources
- Focuses on SaaS businesses
Your company’s yearly income determines the cost of Finmark. Your pricing is ₹8,500/- a month if you earn ₹85/- lakhs a year. On the other hand, if you are still profitable, the cost is ₹4,000/-. On the other end of the range, the price is ₹21,000/- if your annual income is 20 crores.
Another in the list of top financial modeling software is Jirav. It strives to provide quicker and more inclusive financial planning. Users may combine data from the firm, make projections and predictions, and enable real-time feedback and collaboration using driver-based budgeting models. Jirav gives you the ability to design custom drivers using your assumptions and formulae to create predictions and budgets that are more precise. By connecting cause and effect, such as increased revenue being driven by outbound sales representatives or new employees for the support team, workforce planning and staffing decisions may be made more simply. Adapt drivers to the way your company operates.
- Cash flow estimates and financial forecasting
- Planning the workforce with data modeling
- A summary report with personalized KPIs
- Integrations between general ledger, accounting, and payroll
- Formulas and templates already created.
- Forecasts and data are carried forward without spreadsheets.
- Financial and non-financial data customizable dashboards
- Increasing learning curve
- The variety in visualizations is limited
- Works best for smaller businesses that can afford a higher price point
Starter – ₹40,000/- month
Pro – ₹85,000/-month
It comes with pre-mapped accounting and integrated financial statements. You can modify their financial models for preliminary study or make presentations for stakeholders. No installation is necessary because Synario is cloud-based. As a result, it qualifies as top financial modeling software. It is a platform specifically designed to make it simple to create, change, and manage high-performance financial models.
- Version control integrated with multi-account management
- Monitoring the finances and analyzing the profitability
- General ledger and income and balance sheets
- User asset lifecycle management
- Financial models that are scalable and flexible
- For easy access, use the cloud
- Some functionalities may operate differently after a software update.
- Incline learning curve
Starting at ₹1,00,000/- for small financial teams and ₹2,00,000/- monthly for growing businesses.
An integrated modeling tool called Quantrix enables customers to accelerate decision-making. The platform’s primary goal is to provide enterprise-level enterprises with error-proof financial data interactions. With the help of their patented, lightning-fast multi-dimensional calculation engine, it offers the most reliable and adaptable modeling environment for professionals who need to intuitively predict financial and operational scenarios.
- An early warning system for any probable mistakes or inaccuracies in computations
- provides a mechanism for collaborative cloud modeling.
- Can create models using the provided templates.
- Offers platform integrations for other systems
- You can do what-if and multiple-scenario analysis and create projections.
- Less graphic data representations
- It could be particularly challenging for experts who are not familiar with SQL to learn how to utilize this software
Although there is no information about pricing on their website, reports claim that it is more than ₹1,65,000/- per year.
With a focus on providing a simple, user-friendly platform with minimal to no learning curve, Fluxo assists organizations in saying goodbye to spreadsheets. It is flexible, as the name suggests, and provides simple integration and automated reports with little manual work. After connecting your QuickBooks, Xero, or Sage data sources, you may select from a range of model-building templates. Templates are made for companies in a variety of industries, and you can customize them to fit your firm. For quick, precise reporting, you can also create formulas.
- It allows you to predict how changing critical assumptions can impact final results easily.
- It enables you to create and distribute fully configurable dashboards.
- Bi-directional and compatible with any spreadsheet
- Analyze your financials in both the reporting currency and your home currency.
- Maintain a single source of truth for your calculations and make management decisions.
- With just one click, quickly see the transactions and history associated with a single data cell.
- Department heads can produce their forecasts and scenarios.
- Utilizes your current spreadsheets as the only source of truth for all data
- Integrations with Google and Excel spreadsheets, accounting and finance, HR, ATS, billing and operations, sales and marketing, and business intelligence are seamless.
- Automates time-consuming procedures to save time.
Individual – ₹10,000/- monthly
Team – ₹15,000/- monthly
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Q1. What is the Salary of a Financial Analyst?
The salary of a financial analyst can vary depending on a number of factors, including the analyst’s level of education and experience, the industry in which they work, and the size and location of their employer. Financial analysts with advanced degrees, such as a Master’s in Business Administration (MBA) or a Chartered Financial Analyst (CFA) designation, and those with significant experience in the field may be more likely to earn higher salaries than those with less education or experience.
Q2. What features does financial modeling software typically have?
Financial modeling software typically provides a range of features and functions to help users build and maintain financial models, including spreadsheet templates, built-in financial formulas, data visualization tools, and real-time data feeds.
Conclusion on financial modeling software
One of the few things corporations and governmental bodies depend on both expressly and implicitly is financial modeling software. The results of this research help predict demand, which improves the use of available resources, boosts productivity and ultimately results in improved delivery to end users. It has the potential to multiply profitability if appropriately employed, which would enhance an organization’s long-term viability. The above-listed top financial modeling software can address the specific purpose of any firm or business. All these top financial modeling software, are user-friendly and come with clear documentation.
Whether you are a professional financial analyst or an individual investor, financial modeling software can be an important tool in your financial analysis and decision-making toolkit. So, you can choose from the list of top financial modeling software according to your need and range.