Despite all the modern tools available, Excel still runs finance and operations in many companies.

Not because teams don’t know better tools but because Excel is fast, flexible, and trusted.

Here are 18 Excel models finance and operations teams actively use in real companies.

Why Excel Still Dominates Finance & Ops

Excel:

• Is easy to modify
• Allows quick scenario testing
• Works without engineering support
• Is understood across teams

In many businesses, Excel is the final decision layer.

1. Budget vs Actual Model

Used to:

• Compare planned vs actual spending
• Track cost overruns

Core logic:

• Monthly aggregation
• Variance calculations

2. Cash Flow Forecast Model

Used to:

• Predict cash inflows and outflows
• Avoid liquidity issues

Often includes:

• Rolling forecasts
• Scenario assumptions

3. Financial Forecasting Model

Used to:

• Project revenue and expenses
• Support planning decisions

Relies on:

• Historical trends
• Assumption-driven inputs

4. Profit & Loss (P&L) Model

Used to:

• Track business profitability
• Monitor margins

Often shared with leadership.

5. Break-Even Analysis Model

Used to:

• Determine when revenue covers costs

Helps answer:

• “How much do we need to sell to be profitable?”

6. Pricing Sensitivity Model

Used to:

• Test price changes
• Measure impact on revenue and demand

Very common in ops and sales planning.

7. Cost Allocation Model

Used to:

• Distribute shared costs across departments

Important for:

• Fair performance measurement

8. Headcount Planning Model

Used to:

• Plan hiring
• Estimate payroll costs

Often includes:

• Start dates
• Attrition assumptions

9. Inventory Management Model

Used to:

• Track stock levels
• Prevent overstocking or shortages

Common in operations-heavy businesses.

10. Capacity Planning Model

Used to:

• Estimate operational capacity
• Identify bottlenecks

Critical in logistics and service businesses.

11. Scenario Analysis Model

Used to:

• Test best-case, worst-case, and expected scenarios

Helps leadership prepare for uncertainty.

12. Revenue Driver Model

Used to:

• Break revenue into components
• Understand growth levers

Example:

• Users × conversion rate × price

13. Unit Economics Model

Used to:

• Understand cost and profit per unit

Common in:

• Startups
• E-commerce

14. Working Capital Model

Used to:

• Manage receivables and payables

Directly affects cash health.

15. KPI Tracking Model

Used to:

• Monitor business performance metrics

Often feeds dashboards and reports.

16. Vendor Cost Comparison Model

Used to:

• Compare supplier pricing
• Support procurement decisions

17. What-If Analysis Model

Used to:

• Adjust assumptions
• Instantly see impact

This is where Excel shines.

18. Operational Efficiency Model

Used to:

• Measure output vs input
• Identify inefficiencies

Common in ops reviews.

Common Excel Modeling Mistakes

• Hardcoded values
• No documentation
• Overly complex formulas
• No version control

These make models fragile and risky.

What Analysts Should Learn From These Models

If you want to work in:

• Finance
• Operations
• Business analytics

You should understand:

• How these models work
• What assumptions drive them
• Their limitations

Excel isn’t basic, it’s foundational.

Excel models don’t look impressive.

But they run real businesses.

If you understand how finance and ops teams use Excel,
you’ll communicate better and make better decisions.

FAQs