Financial planning for startups is crucial, especially in 2023, and having the right financial modeling software can help you stand above the rest.
Investors are looking for founders that know their numbers like the back of their hand. The best software is user-friendly, flexible, and affordable.
Our favorite financial modeling software for startups in 2023 is Pry.
Contents
- 6 of the best financial modeling software for startups
- Pry (Our Favorite)
- Mosaic
- Finmark
- Baremetrics
- place
- blox
- More financial modeling software options for startups
- Finanancial modeling FAQ
- Choosing the right software for your startup
6+ best financial modeling software for startups
Pry
Best Financial Modeling Software for Startups
Pros:
- Assumption creation is simple, but flexible
- Start for free with no Credit Card
Cons:
- Custom nature may be overwhelming for a novice
- Minimal intergrations
Pricing: Free + paid tier starting at $45/month
See PricingMosaic
Best for Early Stage Startups – Angel, Seed, or Series A
Pros:
- Very clean user interface
- Lots of integrations
- Pre-buit metrics reporting
Cons:
- Source data must be clean
- Forecast assumption are formula based
Pricing: Must contact for pricing.
See PricingFinmark
Best for Larger Teams with Finance team of 3+
Pros:
- Excel like formula builder
- Team collaborative feature
- Out of the box Metrics tracking
- Dedicated headcount planning feature
Cons:
- Not as flexible as excel.
- Complex for a software novice.
- Only supports major bookkeeping and ERP software
- Newer software and recently acquired, so expect bugs
Pricing: $50/month (up to $250+/month if revenue is over $3M/yr)
See PricingBaremetrics
Best for Subscription Saas Revenue Planning
Pros:
- Very detailed Saas subscription revenue reporting
- Developer API for other system integration
- Intuitive dashboard
Cons:
- Forecasting is only available at highest tier
- Integrations are unclear from website
- Small, new company – so expect some bugs
Pricing: Starts @ $108/month (full package can run upwards of $5k/month)
See Pricingplace
Best for Salesforce Customers
Pros:
- Uses Salesforce data and inputs
- Manage customer invoicing & billing
- More reporting felxibility to integrate financial inputs and assumptions
Cons:
- Only compatible with Salesforce
- Series B or later will benefit the most
- Not for small teams
Pricing: Contact for pricing
Book Demoblox
Best Budget Friendly Option
Pros:
- Best for beginners to financial modeling software
- Multiple templates to choose from
- Guided assumption development
- Web based
Cons:
- No online reviews
- May be limited for larger startups
Pricing: Free + paid tier starting at $10/mo
See PricingMore financial modeling software options for startups
Microsoft Excel
For bootstrapped startups, investing in financial modeling software may not be realistic. With Excel, you have unlimited versatility and customizable options. On the other hand, starting with a blank canvas can be overwhelming.
Luckily, Excel provides a wide range of tools and there are plenty of templates online to help you get started. Once you have the outline of the financial model for your startup, making tweaks and changes is easy.
We like Excel because of its flexibility and accessibility – check to see if already installed on your computer!
Google Sheets
If Excel isn’t your style, check out Google Sheets. It’s free, has very similar functionality to Excel, and even more collaboration features.
Google Sheets is cloud-based, so you don’t even need to install anything. Google Sheets updates in real-time and is useful for startups that have team members working remote. You can even work on the same model at the same time and see updates in real time!
The downside is that Google Sheets is newer than Excel so you won’t find as much support online for financial modelling templates.
Old Fashioned Pen & Paper
Call us crazy, but sometimes financial modeling software can be overkill. When you start with pen and paper, you get the benefit of:
- removing the distraction of digital tools – popups, amirite?
- spending more time on the core assumptions and inputs
- Quick iteration and brainstorming – bring out the whiteboard!
- Low cost – we’re talking pennies people
The pen and paper method isn’t sustainable, but it’s a great way to get started and flesh out your ideas.
Financial modeling software for startups FAQ
What is financial modeling software, and why is it important?
To put it in simple terms, financial modeling software is a tool to help you plan.
Do you know how you check the weather forecast to plan your outfit for the day? Startups use financial modeling software to plan for decisions on how and when to use their cash.
What features should I look for in financial modeling software?
#1 is always usability. If it’s not easy (or fun) to use, it won’t get used. Simple as that.
Next, look for flexibility on how to create your assumptions. The financial modeling software you choose for your startup should allow you to create assumptions with ease.
Finally, look at its options for collaboration. As a startup, you might be a one-person show, but in most cases there are lots of people involved; investors, employees, contractors, etc.
Look for ways that the financial modelling software you can share or has real-time collaboration options.
How much does financial modeling software typically cost?
Prices can rage from Free to thousands of dollars per month.
Some pricing options you will see online will include:
- Freemium. You get limited features for free and have the option to pay for extra (usually more advanced) tools.
- Subscription. Much like Netflix and your utility bill, many software tools are available on a monthly or yearly fee.
- Perpetual (One-time). In rare cases, you will see software options that only cost a one-time fee and you can use them forever. Sometimes these software lack updates and limited customer support.
Choosing the right software for your startup
Financial modeling software is a tool startups use for planning the use of the most important asset – cash.
At the end of the day, most financial modelling software all do roughly the same thing.
At Clarity Cash Flow, we look at the following when assessing software for startups:
- Price
- Ease of use
- Customer Support
- Desire to implement a solution
Don’t expect that software will take all the work off your plate – you still need to make the assumptions. But finding the right software will make it easier for you to focus on the important tasks, like customer growth and investor relations.
Found the right software? Check out our recent post about the 5 Financial Mistakes Business Owners Make and How to Avoid Them in 2023.
