Are you in the market for financial modeling software?
There are a variety of software options available for financial modelers to choose from. Each option has pros and cons. It’s important for you to understand each possibility and all the ramifications that accompany them. The goal of this article is to help you better comprehend how each option stacks up.
It’s important to note that each use case is different; and your choice will depend on what goal you want the software to accomplish as well as your budget.
From our perspective, software options can be bundled into three groups: Spreadsheets, Enterprise Planning Tools & Quantrix.
Additionally, there are three major categories needed to evaluate financial modeling software: Agility, Scalability & Structure.
Let’s see how they compare.
Enterprise Planning Tools
|None||Pre-built, little customization||Flexible structure|
Many spreadsheet options are inexpensive (some even may come with your computer). They are also agile. For maintaining basic lists and smaller datasets, spreadsheets are usually a solid choice. The downside is that spreadsheets are generally not scalable. For instance, if you wanted to add new regions or products to a model, that would require extra steps such as copying formulas. The agility that spreadsheets offer is a double-edged sword. The freedom to create anything within the sea of spreadsheet cells sadly lacks structure. You must build it yourself. Even with spreadsheet add-ins, you are still constrained.
Enterprise Planning Tools:
Unlike spreadsheets, Enterprise Planning Tools can leave you with sticker shock. The pricing comes in a variety of forms – the software, the maintenance, consultant fees. These types of tools are scalable though. They are designed to incorporate new categories, such as new regions or products. Enterprise Planning Tools offer pre-built structural options (with little customization). As long as your data fits into these pre-built options, your models will be able to scale. However, it may not perfectly represent your business without consulting help.
Quantrix | Financial Modeling Tool:
Professional Modeling Tools, such as Quantrix, check all the boxes. These tools are designed to be agile, scalable and offer flexible structure. You are able to add new categories and build out your model with ease. Quantrix uses a mutli-dimensional modeling approach, whereas spreadsheets are two-dimensional. And unlike Enterprise Planning Tools, Quantrix gives you complete control to build what you want. Quantrix is able to offer all this at a much more reasonable price compared to some Enterprise Planning Tools.
Quantrix Demo Video:
Hopefully, you have been able to learn more about how these offerings compare and have a better idea about the right fit for you.
If you think a financial modeling software, like Quantrix, might be the right choice for your business, please reach out for a demo and try our free 30 day trial! We are mentioned as an Financial Modeling alternative to traditional spreadsheets on CorporateFinanceInstitute.com.