Excel can build your financial model in minutes (here’s how)

AI CFO

If you still build models cell-by-cell, you’re wasting hours you’ll never get back.

I thought this would take more years…but it’s already here

Microsoft Excel’s new Agent Mode is here, and it acts like a smart “Excel expert” living inside your workbook.

Agent Mode lets you delegate multi-step Excel tasks to AI and can deliver your financial model in minutes.

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What Microsoft Excel’s “agent mode” exactly is and how to use it

Excel Agent Mode is new functionality and is available in beta mode (read further to learn how you can get it).

It’s an AI-powered assistant built into Microsoft Excel that can understand your requests in plain English and then create or modify spreadsheets for you.

Unlike the basic Copilot for Excel (which might suggest formulas or answer questions), Agent Mode goes a step further…

It goes beyond “suggest a formula.” This agent speaks Excel natively and works like an analyst: plan → build → check → explain → iterate.

You describe the outcome. It assembles the workbook and shows its work.

Today’s Example: Producing a 13‑week cash flow forecast

Imagine you have this model or cash flow that you want to build with 2 products, each of which is different. One has some payment terms with 2 weeks, the other 3 weeks.

Different price, different units, and different cost with different payment terms. We also have a leasing costs that are paid every month and salary cost that is also paid every month.

Normally, to build that, you will need at least 1 to 2 hours.

But with agent mode in Excel, it accelerates the process that normally takes hours.

Link to the full demo

Here’s the prompt I used:

I want you to create 13-week cash flow forecast. We have 2 products:
Product A: 5,000 units at 100$ with a payment term of 2 weeks, this is weekly volume
Product B: 3,000 units at 60$ with a payment term of 3 weeks
 
Product A costs are 60% of the price and are paid 3 weeks before the sale.
Product B costs are 30% and paid 1 week before the sale.
 
Leasing is every month for 50k and to be allocated based on revenue.
Salary costs are 200k per month.
We have also planned in week 5 and 8 to have downpayment for a machine for 50k each time.

Output:

  • A 13‑Week CF tab with columns Week 1 → Week 13 and rows for Opening Cash, Receipts, Disbursements, Net Change, Ending Cash.
  • Receipt schedule by product honoring terms.
  • A chart of Ending Cash with conditional formatting to flag negative weeks.
  • An Assumptions block (volumes, prices, terms, salaries, lease, capex, opening cash).
Tip: If Agent Mode’s first draft is too generic, nudge it with concrete numbers. Small clarifications dramatically improve the build.

How to run agent mode

Before you can use Agent Mode, you’ll need a few prerequisites in place.

Don’t worry, it’s straightforward to set up if you have the right Excel version and permissions. Follow these steps to get started:

1. Ensure you have a supported Microsoft 365 Subscription
If you have access to Microsoft 365 Copilot in Excel, you can use Agent Mode (more info here).

If you’re in a corporate environment, check with IT to see if Copilot is enabled for your account.

2. Use Excel for the web (Office 365 online)

  • Go to Excel Online and make sure you are signed up with a license which has Office 365 online
  • Or simply type Excel.new in your browser’s address bar

3. Install the Excel Labs Add-in

  • Go to the Home tab > Add-ins (or Insert > Add-ins)
  • Search for “Excel Labs”

4. Open Excel Labs and enable Agent Mode

  • Click the Excel Labs (flask) icon in the ribbon
  • Find Agent Mode in that list
  • Click on it to select it

5. Start using Agent Mode
Once Agent Mode is selected, the pane will switch to a Copilot chat interface labeled “Agent Mode (Preview)” or similar.

6. Verify if it’s working
Try opening a dummy data and submitting a prompt.

You should see the Agent Mode pane respond with messages like “Thinking…“ or “Drafting a plan…“

If nothing happens, double-check that you have the proper Copilot access and that you selected Agent Mode in the Excel Labs pane.

Also, ensure you’re using a supported browser and the internet connection is active (the AI runs in the cloud).

Troubleshoot: it the request takes too long, try opening it in a new tab and start again.

Sample: Building a 5‑year 3‑statement model for a software company

In this example, I’ve built a financial model for the next five years of a software company with the revenue, headcount plan, and cost per product.

Agent mode built the income statement, the cash flow, and the balance sheet along with the graphs that you need with it.

Link to the full demo

Here’s the prompt I used:

Prepare the 3-statement model in different tabs over the next 5 years for a software company. Prepare a product revenue tab with 3 subscription tiers. Prepare a cost product tab. Prepare a headcount planning tab with cost. Summarize results with important graphs in each tab.

All this in just a few minutes!

Important note

It’s the first beta, so expect bugs and some fine-tuning.

Still, I haven’t been this excited since ChatGPT started handling Excel files and creating graphs in August 2023.

Be also cautious with this tool: with great power comes great responsibility. If you start using it but don’t review the model and don’t validate it, you might get yourself in trouble.

Agent mode is just like a super smart trainee who can make really big mistakes, as it’s not yet experienced and trained.

Make sure to be the perfect manager who both coaches it well and also reviews and improves the work!

Best,
Your AI Finance Expert,
Nicolas

P.S. I have just released my latest YouTube video tutorial on how to use Agent Mode in Excel for your financial models.

Click here to watch it now

Transparency note:
Some of the links in this newsletter are affiliate links or paid placements. That means I might earn a commission if you use them. But I only share things I personally trust and believe are worth your time.