Top 5 Benefits of Financial Modeling-as-a-Service
March 25, 2021 | by: David Phillips
High fidelity financial and operational models can be key contributors to business agility and competitive advantage. Models and scenario analyses provide a clear, informed view of likely (or possible) future states, so that decisions can be made to continuously optimize performance.
Proper model construction requires a combination of domain knowledge, technical acumen and a structured design approach. However, these skills are in short supply. Hiring and retaining skilled financial modelers is a challenging and expensive proposition these days.
Modeling as a service (MaaS) is an increasingly popular delivery approach that aligns with industry-wide adoption of all things “as-a-service”. Most companies have embraced software-as-a-service (SaaS) and even traditional professional services such as medical, legal, and wealth management are now offered as a service. As such, it should be no surprise that financial modeling as a service has gained a foothold in corporate finance strategies.
So, why are companies increasingly outsourcing financial models by turning to modeling as a service? Key reasons include the following:
- Elevate standards with professionally built models – Financial modeling is a specialized discipline and finance and accounting professionals are often tasked with building complex models that fall outside their core skill set. The result is that models sometimes do not meet enterprise thresholds for accuracy, efficiency and transparency. At Model Metrix, we utilize our proven 5 Layer Modeling Methodology with best-in-class modeling software to deliver models that meet the highest, repeatable quality standards.
- Focus on core competencies – Related to the above, modeling as a service frees finance and operations teams to focus on what they do best. They no longer need to spend countless hours auditing their spreadsheet models, hoping against hope that there are no formula errors, broken worksheet links and material mistakes. They can now focus on core competencies and providing strategic value.
- Eliminate spreadsheet silos, risks and errors – Model Metrix employs Quantrix Modeler, the world’s leading business and financial modeling platform. Our models are designed for business users, provide audit trail, version control and error tracking, and feature natural language formulas. Models are securely accessed anytime, anywhere via web browser. User roles and permissions foster collaboration while ensuring data security. Importantly, our models can be embedded as part of broader, high-value business processes.
- Save money, time and resources – Experienced financial modelers are in high demand and command high salaries. Modeling as a service reduces the need to hire additional specialized finance staff and pricey consultants. Organizations leverage cost savings and scale the business without growing headcount.
- Cost predictability – Modeling-as-a-service is a subscription-based service that adds predictability to the cost of financial modeling. By paying a monthly or annual fee that includes the model, training and licensing, companies can set a predictable budget for their modeling requirements.
Modeling-as-a-Service provides numerous benefits that are increasingly being leveraged by organizations. MaaS elevates the quality of models that companies rely on for growth and success. It frees up finance and operations teams to focus on what they do best while imparting the confidence that their models are resulting in better decisions. If you haven’t already, it’s time to add modeling-as-a-service to your corporate finance strategy.
For more information, please visit www.modelmetrix.com/modeling-as-a-service or contact us for an overview.