- New research finds that 88% of SME finance leaders see AI as a way to enhance, not replace, tools such as Microsoft Excel
- Channel leaders at 4GL Concepts, Eureka Solutions, and iplicit advise on how SMEs can optimise Excel within the modern finance function
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 SME finance leaders 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 SME 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 channel leaders recently commented on the evolution of Microsoft Excel within their SME customers’ finance function and the important role it continues to play today.
Robin Fitzpatrick, Director at 4GL Concepts, said: “Excel has been central for SMEs over the years. It has given them the ability to manage numbers, track performance, and build reports without needing big, expensive systems. A lot of businesses still turn to Excel because their accounting packages do not give them much flexibility when it comes to management reporting, so Excel ends up being the only practical option. It has become the tool people instinctively reach for, whether it is reporting, forecasting or just making sense of day-to-day data.”
“Excel is still brilliant where flexibility and speed matter. If you need to knock up a report, run a scenario, or get some quick insights, it’s hard to beat. It’s also the go to for data migration, most software vendors now provide readymade Excel templates for moving data into their systems, so SMEs naturally fall back on it.”
David Lindores, CEO of Eureka Solutions, said: “For many SMEs over the years, Excel has been the bridge between paper-based systems and more sophisticated accounting or ERP software.”
However, with cloud platforms, automation, and AI now commonplace, the same panel has advised on best practices for SMEs using AI within their finance function today, urging it to form part of a well-integrated finance tech stack as businesses grow.
“But on the flipside, it has the potential to stunt SME growth. As SMEs expand, they need to improve processes and procedures, yet sadly, too many have restricted this growth by relying heavily on a tool that can easily act as a single point of failure. This over-reliance often stems from its familiarity and resistance from leadership to modernise.”
David Lindores adds: “Excel also has its limits – particularly if it’s used as a core system for operational processes like month-end, order processing, or invoice approvals. That’s where we see challenges: version control issues, data errors, time-consuming manual consolidation, and a lack of real-time visibility.”
Speaking on the shortfalls of Excel, Robin Fitzpatrick, Director at 4GL Concepts, adds: “Once datasets get too big, or when multiple people are working on the same file, things can get messy. Errors creep in, version control becomes a headache and integrating it properly with other systems is always a challenge. So, while it is fantastic as a flexible tool, it is not always the best long-term solution as a business grows.”
Paula Cooper, Head of Channel at iplicit, adds: “I think within today’s tech landscape, when used with other tools in a modern, cloud-based portfolio, Excel still continue to play an important role for SME finance teams. For less tech-confident users and as a time saver for FD’s and senior managers looking to produce their reports in a tried and tested manner, it fits the bill. I believe there will be a place for it for years to come.”
David Lindores adds: “I think that Excel’s role will become more complementary. It’ll continue as a front-end analysis and modelling tool, but with data flowing from modern, cloud-based systems automatically and pretty much eradicating the need for manual updates and reconciliations. Cloud ERP, accounting platforms and integration platforms allow SMEs to automate data flows between systems, which means Excel should be used for insight, not administration.”
Robin Fitzpatrick adds: “I do not see Excel disappearing any time soon, it is too ingrained. But I do think its role will shift. More and more, it will sit alongside cloud platforms rather than being the main system people rely on.”
While SME finance teams 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.
Robin Fitzpatrick adds: “AI is going to change the game when it comes to Excel. Tasks like data migration and even some reporting – tasks that currently lean heavily on Excel – will end up being automated, some are already there. I would think that AI will be able to clean, map and move data, or pull together reports without the manual effort. Excel will still be a handy front end for ad-hoc work and analysis, but the heavy lifting will move elsewhere.”
The panel were also asked what advice they would give SME business leaders about striking the right balance between leveraging Excel and embracing more automated, integrated finance tools:
- Balance, don’t depend (Robin Fitzpatrick at 4GL Concepts): “I would say continue to make the most of what Excel does well – custom reporting, data analysis and migrations – but keep an eye on what today’s modern accounting applications are doing and be prepared to start letting the systems you invest in start to do more of the heavy lifting. Especially if you find yourself spending too much time reconciling spreadsheets, that’s a sign it’s time to look at more automated, integrated solutions. Keep Excel for quick wins and flexibility but lean on cloud or BI tools for the heavy lifting, collaboration, and accuracy.”
- Analysis, not admin (David Lindores at Eureka Solutions): “Keep using Excel for what it does best – analysis, quick calculations and modelling – but don’t rely on it to do heavy lifting or to run your core processes. Invest in cloud-based systems that automate repetitive tasks like transaction posting, bank reconciliation, or order entry, and use integration platforms to connect those systems together. By doing this, you remove the risks of human error, speed up reporting cycles, and free your finance team to focus on strategy rather than spreadsheet maintenance.”
- Integrate, don’t replace (Paula Cooper at iplicit): “Don’t rush to replace Excel. Instead, integrate it into your finance tech stack as best you can, and make it as error-free as possible. Harness the power of new, cloud-based systems that can automatically populate and refresh your spreadsheets without manual intervention and risk of error. And in time, look to enhance its capabilities with additional tools, whether that be layers of automation or integrations with the likes of FP&A tools. I believe that for the foreseeable, the mix of generations and staff skills within today’s finance teams will help elongate Excel’s value and keep it relevant within the finance tech stack. And by embracing it alongside new tech, adopting new systems becomes less of a daunting experience – adding components of tried and tested familiarity while harnessing the latest cutting-edge tech.”
For more information about iplicit, visit the website (www.iplicit.com)
For more information about 4GL Concepts Ltd, visit www.4glconcepts.com
www.eurekasolutions.co.uk/about-us/
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