Financial modeling software can be an essential asset for SaaS businesses, offering detailed insight into what’s happening with your customers, subscriptions, and revenue as it exists now and what that data means for the future.
As a result, financial modeling software is essential in helping your SaaS company make more informed decisions surrounding income, cash flow, revenue, risk management, and other financial outcomes.
We strongly recommend leveraging scenario-based forecasts for your business to better predict your SaaS and subscription finances. And since the forecasts are only useful if they’re truly accurate and actionable, let’s discuss the top financial modeling software on the market and how to choose what’s best for you.
Financial modeling software (also sometimes called a “financial model builder”) creates financial models based on imported data. These tools can generate diverse financial models that include revenue forecasts months or even up to two years in advance based on what’s currently happening with your business’s customers, pricing, and overall revenue trends.
Many SaaS businesses use financial modeling software to better understand their projected growth. They may also use these models to see how changes in pricing models or customer retention rates can impact their future financial status, as well as using them for risk management and financial planning.
In some cases, businesses may also use these financial models to appeal to potential investors during different fundraising rounds.
There are plenty of financial modeling tools on the market, and we strongly recommend looking for tools that focus on SaaS or subscription-based models. And while there are plenty of great options to choose from, you want to choose a tool that can help with scenario-based forecasting.
Let’s look at seven of the best tools on the market and some standout features of each.
Baremetrics is the best financial modeling software for 2023. It helps you track cash flow, subscription revenue, lost revenue, and other financial data.
To create a valuable and actionable SaaS financial model, you need data about subscriptions and customers. Baremetrics is a SaaS analytics platform that generates unrivaled subscription intelligence and beautiful data visualizations that provide key information for your financial models.
You can enter data manually, use Baremetrics integrations with key data sources, or export data from a billing system or Microsoft Excel to upload to the platform. Baremetrics even has a google sheets add-on that pulls data from your Baremetrics platform directly into Google sheets!
Read more: 7 Best SaaS Billing Systems.
Once up and running, Baremetrics provides accurate analytics about key performance indicators such as Monthly Recurring Revenue so you can track active customers, upgrades, cancelations, and downgrades from one system. Use these insights for your financial models.
Here are some benefits of using Baremetrics for modeling:
Baremetrics is the best financial modeling software for 2023. It helps you track cash flow, subscription revenue, lost revenue, and other financials. Check out our pricing page to find a model that works for you.
Make smarter decisions about your future. Start your Baremetrics trial. It’s 100% free for the first 14-days! Check out our pricing page to find a model that works for you
This business intelligence platform analyzes financial data and converts it into data sets for detailed financial analysis. You can create financial models to help you assess commercial success of subscription businesses, leveraging predictive analysis.
Top features include:
There is no free trial for Oracle Business Intelligence, and according to Capterra, pricing starts at $150 per month.
Quantrix provides one-click financial forecasting to simplify the revenue forecasting process.
Track KPIs and identify scenarios that could put your enterprise at risk. You can also use this financial modeling software for demand planning and general business intelligence. Here are some other features of Quantrix Modeler:
These are the standout features to consider:
A free trial is available, and you can contact sales for more pricing information.
Operis is a forecasting platform that builds successful SaaS financial models and can help you make data-driven decisions about your future budgets and operations. The financial modeling software boasts features such as formula optimization, mapping, workbook comparison, and even debt modeling.
It was made for Microsoft and Excel to create financial models from the data you have on hand.
Standout features include:
This tool doesn’t provide the kind of interactive dashboards and visuals that you get with Baremetrics or Quantrix, but it’s a solid tool for those who only want to use data in Excel.
The annual subscription cost is currently $349.99.
Oracle's Hyperion is another forecasting platform that replaces spreadsheets. It comes with a flexible modeling system for insights into pricing and financial statements. Other features include hybrid data models, workflow capabilities, and Microsoft Office integration.
Standout features include:
You need to contact sales for specific pricing information, but we know that this isn’t a low-cost tool.
Business Objects has innovative financial planning capabilities that help SaaS companies prepare for the future. With reliable modelers, templates, and add-ins, Business Objects helps you manage your balance sheet.
Standout features of this tool include:
Pricing information isn’t readily available online, but you can request a demo or a quote.
IBM Cognos is an AI-based financial modeling platform with drag-and-drop capabilities for greater functionality. You can create models for risk management and scenario analysis and share data insights with stakeholders and team members.
Standout features of this financial modeling tool include:
Interactive dashboards
Strong data visualization
Enterprise-grade reports
Predictive forecasting
AI assistant
Pricing starts at $10.60 USD per user per month, but varies depending on which products you choose.
Recommended reading: Price Optimization in SaaS: Customer Retention.
When choosing financial modeling software for your business, there are a few things every business should keep in mind:
In addition to these general considerations that all businesses should look for, there are also a few criteria that will vary depending on your specific business’s needs. These include the following:
Creating a new SaaS financial model based on forecasts, instead of just looking at actuals, will provide you the tools you need to improve revenue, profit, cash flow, and your entire bottom line.
But first, you’ll need reliable modeling software that pulls financial data into a separate system for evaluation and real-time metrics. The software above serves this purpose, providing you with lucrative resources for more accurate forecast-based models.
Baremetrics is the No.1 modeling tool for SaaS companies that want to gauge their financial futures. It helps in forecasting data trends such as churn, cancelations, and downgrades from one centralized hub and power subscription intelligence in your enterprise.
This SaaS analytics program takes your financial data and generates insights about subscriptions, customers, cancelations, downgrades, upgrades, and revenue for better decision-making in your enterprise.
With multiple integrations, custom reports, and an easy-to-use API, you can track subscription-based KPIs in minutes. Global SaaS businesses use Baremetrics for financial modeling.
This subscription-centered software transforms financials into valuable data insights for budgeting, cash flow management, profitability, and growth.
Start your free 14-day Baremetrics trial today.