A CFO’s Guide to Financial Modelling Tools in 2026

In 2026, CFO expectations of financial modelling have evolved. Models are no longer static spreadsheets built once a year. They are expected to be dynamic, transparent, and closely connected to reliable, up-to-date financial data. As a result, the tools finance teams use for modelling have become a key part of the modern finance technology stack. This guide explains what financial modelling tools are, how CFOs use them, the different types available, and the capabilities finance leaders should prioritise when evaluating

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What are financial modelling tools?

Financial modelling tools are software applications or systems used to create structured representations of an organisation’s financial performance. These models are used to simulate outcomes, test assumptions, and evaluate the financial impact of different decisions or scenarios.

At their core, financial modelling tools help finance teams answer questions such as:

• What is likely to happen if current trends continue?  

• How would results change under different assumptions?  

• What are the financial implications of strategic decisions?

What CFOs use financial models for

CFOs and finance leaders rely on financial models to support a wide range of activities, including:

• Forecasting and budgeting – projecting future revenue, costs, and cash flow

• Scenario and what-if analysis – testing the impact of changes in pricing, volume, or cost structures

• Strategic planning – evaluating growth initiatives, acquisitions, or market expansion

• Investment decisions – assessing returns, payback periods, and financial risk

• Risk management – understanding downside scenarios and financial resilience

In each case, the quality of the model depends heavily on the quality and consistency of the underlying data.

Types of financial modelling tools

There is no single approach to financial modelling. Most organisations use one or more of the following types of tools.

Spreadsheet-based models

Spreadsheets remain widely used due to their flexibility and familiarity. However, they can become difficult to maintain as models grow in complexity, particularly when multiple contributors and versions are involved.

Integrated planning tools

Integrated planning tools combine modelling, budgeting, and forecasting within a structured environment. They offer greater control and consistency than standalone spreadsheets.

Cloud-based modelling platforms

Cloud-based tools enable collaboration, version control, and real-time access to data. They are increasingly used by finance teams seeking scalability and governance.

Key capabilities CFOs expect in 2026

When evaluating financial modelling tools, CFOs typically prioritise:

• Scenario and what-if modelling to assess multiple outcomes

• Connection to reliable source data to ensure models reflect reality

• Version control and auditability to maintain transparency

• Collaboration and governance across finance and leadership teams

• Scalability as organisational complexity increases

These capabilities help ensure models support confident decision-making rather than creating additional risk.

Why reliable consolidated data matters for financial modelling

Financial models are only as good as the data that feeds them. In multi-entity organisations, this often means relying on consolidated, group-level financial information.

Without accurate consolidated data, financial models may:

• Use inconsistent assumptions across entities

• Misstate group performance  

• Produce misleading forecasts or scenarios

For this reason, many finance teams focus on strengthening their consolidation and reporting foundations before expanding modelling capabilities.

Common pitfalls to avoid

Finance teams should be cautious of:  

• Overly complex models that are difficult to explain or maintain  

• Heavy reliance on manual data inputs  

• Lack of transparency around assumptions  

• Disconnected models that do not reflect consolidated reality

Avoiding these pitfalls improves trust in models and the decisions they support.

How AccountsIQ supports better financial decision-making

AccountsIQ provides finance teams with accurate, consolidated financial data that supports forecasting, modelling, and decision-making across multi-entity organisations.

Learn how AccountsIQ supports better financial decisions through reliable group reporting.

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