What’s better? Excel add-in versus FP&A software

Excel is the most used software out there. And for finance processes like budgeting and planning it’s often the go-to choice. The familiarity of spreadsheets can be hard to let go of, which is why FP&A teams look to Excel add-ins to boost spreadsheets functionality. But there are downsides to Excel add-ins too.

What is an Excel add-in?

An Excel add-in is a custom-built software tool that enables users of Microsoft Excel or Excel-based financial planning and analysis (FP&A) software to leverage additional functionalities that are not available in the standard Excel application. Within the context of financial performance management (FPM), these functionalities typically include sourcing, visualization, analysis, and reporting of financial data.

There are thousands of Excel add-ins available that have been built by third parties. The goal of Excel add-ins is to provide a wide range of capabilities that enable users to save time and effort while working with large or complex data sets.

While Excel add-ins appear easy to use, they are complex to create. The development of Excel add-ins requires coding expertise in languages such as XML and VBA to create an easy-to-use interface that seamlessly integrates with the standard Excel application.

But there is a manual component to consider when you use Excel add-ins too. You not only have to install the add-in, but you have to ensure it syncs across all your workbooks without issue. In contrast, FP&A software is ready to use. There are no additional installations required, and data syncing and usage is automated for a streamlined and efficient approach to FP&A.

What’s the difference between Excel add-in and FP&A software?

Excel add-ins are pre-built tools that users can easily install within their existing Microsoft Excel workbook. An FP&A application, whether standalone or as part of an FPM platform, already comes with all the required tools for budgeting and planning, forecasting, and reporting and analytics.

Additionally, a single Excel add-in doesn’t offer the features that are available in a dedicated FP&A application or an FPM platform.

With Excel add-ins, users have to find each add-in that meets their needs and manually install add-ins across their relevant workbooks before working with their financial data.

For organizations that handle large volumes of data, using an Excel add-in can result in a significant loss of time and resources in performing administrative tasks rather than focusing on making strategic business decisions.

On the flip side, FP&A software offers a number of advantages. Since many FP&A software vendors offer cloud-based software-as-a-service (SaaS) solutions, modern FP&A applications are easier to deploy, have better integrations with several ERP and CRM systems, enable users to perform complex data analysis, and lead to increased organizational productivity.

FPM platforms also allow finance professionals who are not spreadsheet experts to quickly perform ad-hoc analysis and build business models or reports. Furthermore, FPM software can be easily configured by finance users, without the involvement of IT professionals that are often needed to customize Excel.

What is a Microsoft 365 add-in for FP&A software?

For users who want to continue working within a familiar Excel-based environment, modern FPM platforms such as the Prophix Financial Performance Platform offer a built-in Microsoft 365 add-in. This allows users to not only do everything they can in Excel, but also across other Microsoft 365 products, like PowerPoint, in one place with easy access to their financial data.

Prophix’s platform has advanced management reporting, financial planning & analysis, financial consolidation, and intercompany management capabilities, with a built-in logic that is designed to anticipate your needs.

The platform brings together powerful consolidation, reporting and analysis, and budgeting and planning applications into one centralized interface for hyper precision, ultra-adaptability, and dramatic performance. Our Data Integration Studio enables customers to use their financial data across all these applications, with real-time updates throughout the platform whenever data is changed or updated in any application.

What can you do with the Microsoft 365 add-in in Prophix?

The Microsoft 365 add-in from Prophix provides the following functionalities that you can leverage in Excel and PowerPoint for FP&A activities:

1. With Contributor, users can perform simple calculations and add vital data inputs for corporate budget development directly in Excel, whether they are a Prophix user or not. This streamlines the company’s workflows and fosters greater collaboration.
2. Analyzer allows users to import Prophix data in Excel to create sophisticated reports and models using our ad-hoc analysis and template studio. This data is pushed back into Prophix for comprehensive analysis that can inform your decision-making.
3. The PowerPoint add-in enables users to seamlessly integrate Prophix KPIs, charts, and reports into their presentations and provides access to real-time data for driving impactful business outcomes.

Why a Financial Performance Platform is a good choice

Now that we’ve compared an Excel add-in versus a Financial Performance Platform, you can decide which is the right choice for you and your business.

A financial performance platform, like Prophix, offers pre-built connectors and data integration so your data is guaranteed to be clean and up to date. Additionally, you can use a Microsoft 365 add-in within the software so you can keep your spreadsheets and Excel interface and experience the benefits of a platform. Financial performance platforms also offer robust data security and ownership with minimal IT support of maintenance.

Foster company-wide confidence in your decisions when you eliminate the risks associated with manual add-ins or disconnected databases. A unified, all-in-one platform empowers teams with reliable, strategic insights that drive real impact across the business.