What Are Financial Modeling Tools?
Financial modeling tools are Excel templates and pre-built models that can be used as a starting point for performing analysis. Beyond templates, other tools include software and programming languages (such as VBA) that can be used to increase automation and ensure the quality and standards of models are held to the highest level. The most common tool is simply Microsoft Excel.
List of Tools
The number one financial modeling tool is still Excel. The reason Excel is still so common is for several reasons: (1) its completely flexible and dynamic, (2) it’s the incumbent software and everybody uses it, (3) its extremely affordable, (4) it can be used at a basic level with almost no training, (5) it’s totally transparent and easy to audit, (6) it’s easy to edit, and (7) it integrates with other types of accounting and finance work, which is mostly all done in Excel.
Other tools include software programs such as SAP that are used by large global corporations that can afford them. The software packages usually require expensive installations and are much less common than Excel. As simple as it is, Excel is by far the most common platform for building models.