Excel built the foundation of FP&A, but it wasn't designed for the speed or scale modern finance demands. Learn why today’s finance leaders are adopting a more connected planning approach that moves with the entire business.
Excel spreadsheets have long been the cornerstone of financial planning and analysis. They’re flexible, accessible, and near-universally familiar to finance teams. For decades in financial planning and analysis (FP&A), Excel didn’t just support planning—it was the planning system.
At most companies, that’s still the case. AFP found that 96% of FP&A professionals use spreadsheets for planning, and 93% use them for financial reporting on a daily or weekly basis. But despite Excel’s continued ubiquitous place in finance, the pace and complexity of business today is exposing its limits.
Manual processes, version confusion, and siloed workflows prevent finance from making decisions on time and with confidence. The needs of the business have evolved, and FP&A must evolve with them. For FP&A teams ready to lead with agility, speed, and insight, the path forward requires a new model—and new FP&A software.
Despite its growing limitations, Excel remains deeply embedded in finance for good reason. It’s fast, widely accessible, and gives users near-total control over their models. In the hands of experienced analysts, Excel can be a powerful engine for building forecasts, running scenarios, and delivering reports. That legacy—and the trust that comes with it—makes it difficult to walk away from completely.
Finance teams continue to rely on Excel for a few key reasons:
Familiarity and accessibility: Nearly every finance professional knows how to use Excel. That lowers training overhead and makes it easy to share models across teams.
Flexible, powerful modeling: Excel can be molded into nearly any planning tool, from revenue models to workforce projections. Its open-ended structure supports creativity and customization.
Speed and control: For quick-turn analyses or last-minute requests, Excel gives analysts the freedom to move fast without waiting on system updates or IT support.
These strengths are real, but they come with tradeoffs. As finance teams are asked to do more—partner across the business, forecast in real time, respond to change—these strengths start to show their limits.
As planning grows more dynamic and collaborative, the limitations of spreadsheet-based processes become harder to ignore. For CFOs and teams trying to guide the business with clarity and speed, these limitations are more than frustrating—they're barriers to performance.
Excel isn’t connected to core business systems. Excel files must be exported, reformatted, and manually entered into planning models. The result: outdated inputs, delays in updates, and constant reconciliation work.
With multiple contributors and no centralized version, Excel models often live in personal drives or email threads. This creates confusion around which version is accurate and wastes time aligning stakeholders.
Excel lacks the built-in controls to manage approvals, track changes, or limit access based on roles. As more users touch a model, the risks of error, miscommunication, and audit failures increase.
What works for a single department becomes fragile at the enterprise level. Excel slows down with large datasets, complex logic, or multiple users working simultaneously.
Spreadsheets weren’t built to surface trends, flag anomalies, or model rapid what-if scenarios. These blind spots reduce finance’s ability to drive strategic conversations.
Finance is no longer a back-office scorekeeper. FP&A teams are expected to provide forward-looking insight that helps steer the business in real time. This means delivering rolling forecasts, modeling different outcomes, and collaborating seamlessly with partners across HR, sales, and operations.
Transforming into this role with technologies like artificial intelligence and automation are top priority for CFOs and finance leaders. The Workday Global CFO AI Indicator Report found key functions of financial planning at the top of the priority list for AI-led finance transformation, with areas like forecasting, budget decisions, and strategic support across business lines leading the way.
Those expectations stretch well beyond what traditional spreadsheets were designed to do. Business leaders today don’t need cleaner templates—they need strategic insight that adapts to change. And that shift is driving a new standard for what FP&A must deliver.
Modern FP&A has reimagined planning; it’s built on capabilities like:
Connected planning across departments: Finance, HR, and operations work from the same live data set—no silos, no exports, no second-guessing the numbers.
Driver-based modeling and rolling forecasts: Teams can update assumptions as business conditions shift, helping stakeholders stay aligned and ahead of change.
Rapid scenario planning: What-if analysis takes minutes, not hours, so leaders can weigh options and adjust course quickly.
Self-service dashboards, data visualizations, and real-time insights: Business partners don’t need to wait for finance to run a report—they have access to the information they need, when they need it.
Many teams have already started the shift, but progress looks different for everyone. Understanding where you are in that journey is the first step toward building a more responsive, collaborative FP&A function.
To successfully move beyond Excel, FP&A teams must plan strategically. The most effective transitions happen in stages—with finance leaders focusing on the biggest areas of friction, gaining early wins, and building momentum as they modernize planning. Here’s a practical roadmap to modernizing your FP&A systems and capabilities.
Examine where Excel causes delays, inefficiencies, or risks in your planning process. Is budget consolidation taking too long? Are headcount forecasts misaligned with actual hiring? Is your team spending too much time updating formulas instead of delivering insights? Identify the specific tasks where spreadsheets are getting in the way.
Choose one or two planning processes where improvements will be felt most immediately—such as revenue forecasting, workforce planning, or management reporting. Look for areas with high visibility or known pain points. Quick wins here build credibility and make the case for broader change.
Involve IT, HR, operations, and key business leaders early to ensure shared priorities, clean data flows, and aligned expectations. These conversations also help finance teams learn about needs that might otherwise be overlooked, and they lay the groundwork for adoption of modernized FP&A processes and tools.
Move from toolkits to purpose-built planning platforms. Select financial planning software that supports enterprise-level planning with live data integration, scalable modeling, built-in governance, and intuitive interfaces. The right solution should simplify planning, reduce IT reliance, and empower finance teams to deliver fast insights across the business.
Focus on outcomes that prove real value. Track gains in forecast accuracy, shortened planning cycles, reforecasting speed, and how engaged your business partners are in the process. These results will help build credibility, secure buy-in, and accelerate broader adoption.
Modernized, platform-supported planning is the new baseline for future-ready finance teams.
Excel helped build the foundation of FP&A. But as finance takes on a more strategic and real-time role in the business, legacy tools can’t keep up with the speed, complexity, and collaboration today demands. Modernized, platform-supported planning is the new baseline for future-ready finance teams.
Spreadsheets still have a place—for quick models, exploratory work, and familiar tasks. But they should no longer sit at the center of enterprise planning. When planning is continuous, collaborative, and data-driven, finance becomes a proactive force in shaping business performance.
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