Microsoft Excel has turned 40 years old today, marking a milestone age for the trusted spreadsheet software.
Initially released on September 30th, 1985, it’s estimated that Excel’s monthly user-base now ranges between 750 million to 1.2 billion, and it’s become a highly influential tool for CFOs and finance professionals since its launch.
New research commissioned by iplicit suggests that, despite the arrival and proliferation of automation and AI, Excel will continue to play an instrumental role within the finance function for years to come.
According to iplicit’s survey of 250 midmarket finance leaders, 88% see AI as a way to enhance, not replace, tools such as Microsoft Excel, and 92% agree that AI will help their team use Excel more efficiently and powerfully.
A panel of CFOs recently commented on the evolution of Microsoft Excel within the finance function and the important role it continues to play today.
Catherine Birkett, Chief Financial Officer global bank payments fintech at GoCardless, said: “Excel’s flexibility and power have made it a go-to tool for financial modelling in fast-changing environments throughout my career. While it may not be the only tool anymore, it’s still adaptable and a critical piece of our work. The constraint today isn’t the hardware, but our own imagination in how we use the new tools available to us.”
Erik Rothschild, Chief Financial Officer at inventory management platform Cin7, adds: “Excel has arguably had the most impact on the way financial professionals work over the last 40 years of any tool. Over the past 20 years or so, cloud-based platforms have displaced Excel for more complex workflows and tasks; however, with its flexibility and ease of use, it remains the tool of choice for fast and easy modelling or communicating financial information. It is also ubiquitous, which allows groups to exchange information and collaborate even if they are not part of the same organisation.”
However, with cloud platforms, automation, and AI now commonplace, the same panel has advised on best practices for using AI within the finance function today, urging it to form part of a well-integrated finance tech stack as businesses grow.
Catherine Birkett at GoCardless adds: “Excel falls short when it comes to scalability. As you grow your Excel sheets will inevitably become more complicated and maintaining them could require a lot of manual work. This is where automation and more integrated systems become essential.”
Erik Rothschild at Cin7 adds: “Excel works well if you’re managing only one location, one sales channel, or one price list. However, when your business expands and you experience a significant increase in sales volume, channels, or locations – or offer different prices to different customers – Excel may start to fall short.”
Rob Steele, Chief Finance Officer at cloud accounting provider iplicit said: “Excel should be complimenting your finance function, not underpinning it – integrating directly with the core finance system. That way you retain the versability, customisation and flexibility people value with Excel, while ensuring the underlying data is accurate, current, and controlled.”
“Increasingly, the modern finance stack is about connectivity. In the midmarket, we’re seeing increasing demand for finance systems that integrate with other core tools and functions – from bank payments and FP&A to inventory management.”
While finance leaders aren’t ready to part with Excel spreadsheets in 2025, they do see new technology as a way to make spreadsheets smarter, faster, and less time-consuming to manage. When asked how AI and automation will most impact the role of the finance leader in the next 5 years, over a third (34%) said it would mean less focus on manual work such as Microsoft Excel sheets.
Rob Steele adds: “Many finance teams have invested years building bespoke Excel reports that work for their organisation’s unique needs. Abandoning these packs altogether isn’t always feasible. The smarter approach, in my view, is to enable the data within those customised Excel sheets to refresh live from a core, cloud-based system. With the right cloud integration and automations, Excel can thrive as part of the modern finance tech stack as opposed to acting as an inconvenient, time-consuming data repository on either end that requires constant manual reworking.”
The panel were also asked what advice they would give fellow CFOs and business leaders about striking the right balance between leveraging Excel and embracing more automated, integrated finance tools:
- Use case matters (Erik Rothschild at Cin7): “Choosing between Excel or other automated solutions should depend on the use case and need. For repeatable processes that involve the same data sources, an automated solution is likely the better option. For one-off analysis or if collaboration is needed across teams, Excel can still serve as a fast, efficient tool for financial professionals.”
- Automation should empower strategic thinking (Catherine Birkett at GoCardless): “The key is to leverage the right tools for the right job and focus on adding value. Use automation to take care of the heavy lifting, like payment processing and routine reporting, which frees up time for more strategic work. We need to arm ourselves with the right tools and people to interpret data and use it to drive business strategy, rather than just manage it.”
- Layer, not core (Rob Steele at iplicit): “CFOs need to recognise Excel as an analytical layer, not a core finance system. The balance comes when your core finance system, other integrated tools, and Excel aren’t constantly at odds – but working together. Finance leaders should be looking for solutions that integrate seamlessly with Excel and allow their teams to use it confidently without compromising on data integrity or control. That way, they get the best of both worlds: automation where they need it, and flexibility where they want it.”
