Excel & Google Sheets vs Software For Financial Forecasting

Financial modelling allows businesses to predict how the company is likely to perform in the future by building out different scenarios based on possible business decisions. While there are a number of ways that companies can run financial forecasts or scenarios, there is an ongoing debate among experts about which tools work better, Google Sheets or Excel versus financial forecasting software.

While Excel (or Google Sheets) is seen as a more traditional method for business forecasting, and the use of automated financial modelling tools as more modern, the decision on which to use for business projection purposes however, depends largely on the business’s overall future goals.

But as a startup, or even an existing business, what factors should you take into consideration when looking to make the choice between these methods?

In this post, I’ll be covering:

• So, why should you care about choosing a financial forecasting tool?
• Excel and Google Sheets are powerful tools, but human error remains their biggest limitation
• Brixx helps businesses of all kinds and sizes rapidly model financial forecasting scenarios with ease
• Continue reading…

Still unsure of whether you need to dive into the world of financial forecasting? Take a look at our blog post “Financial Planning And Analysis (FP&A) | A Brief Overview” to see why FP&A should have a central role in your business. If you’re feeling up to the challenge, read “The Ultimate Guide to Financial Forecasting & Business Projections” to gain some insight into the world of forecasting for companies.

So, why should you care about choosing a financial forecasting tool?

Financial forecasting is critical to business success and as with any task, it is important that you use the right tools for the job.

Not only does cash flow modelling and scenario analysis help you set goals and plan for your business’s future, having accurate data and statistics to analyze can provide valuable insight on what the business needs to increase its success.

Many small businesses or startups choose to make use of more affordable solutions like Excel or Google Sheets for their business modelling as they are so convenient and the majority of people are familiar with them.

An array of tools and platforms exist that now allow businesses of any type and size to more easily and more effectively run their business projection models and plan for their goals — Sign up for a 7 Day FREE Trial Of BRIXX.

Excel and Google Sheets are powerful tools, but human error remains their biggest limitation

One of the main problems with using a Google Sheets or Excel spreadsheet for cash flow forecasting and scenario modelling, is that maintaining these can be time-consuming and labour intensive. While spreadsheets may work for businesses on a smaller scale, developing or developed businesses may require input from more than one person, increasing the amount of manpower required to complete a task that specialized forecasting software can do automatically.

Take a look at our “Free Cash Flow Forecast Template” that you can download and use, customize and experiment with.

Pros of using spreadsheets:

• Free or near-free options available (Excel, Google Sheets)
• Widely used
• Easy to use, intuitive, no intensive training required

Cons of using spreadsheets:

• Large amounts of data can be overwhelming to view and time-consuming to translate into reports
• Human error and bias can lead to data issues
• Lack of data history without proper backups

See our complete list of the pros and cons of using spreadsheets for forecasting by reading the full blog post “Excel And Google Sheets vs Software For Financial Forecasting” today.

With a cloud-hosted modelling solution, users can access their cash flow forecasts from anywhere, guaranteeing secure access to up-to-date data.

Brixx helps businesses of all kinds and sizes rapidly model financial forecasting scenarios with ease

There are a number of specifically designed automated cash flow modelling tools that allow users to enter their data and let the software do the hard work for them.

Brixx is a financial modelling tool that allows businesses, startups and accountants to know how today’s business decisions will impact the future bottom line. It is designed for every stage of business, helping customers create comprehensive financial models and long-term cash flow forecasts that go beyond the scope of traditional Excel spreadsheet forecasts.

Additionally, Brixx allows businesses to forecast and rapidly model “what if” scenarios with ease by integrating with Xero. This feature allows Xero users to update actuals on demand for easy comparison to create cash flow forecasts.

Continue reading…

Interested in hearing more about what we’ve discussed in this post? Take a look at the full blog post “Excel And Google Sheets vs Software For Financial Forecasting” where we dive deeper into what we’ve touched on today to help you get a better understanding of how software like Brixx compares to spreadsheets for forecasting. — Don’t forget to take a tour of Brixx with the Bike Shop Demo.