Excel Power Query and Alteryx are both powerful tools for data manipulation and analysis, capable of automating the transformation of large datasets. While both products can streamline complex manual tasks, there are some key differences that should be considered before implementing one or the other. Below is a high-level comparison of the two products.

Excel Power Query is a free add-in for Microsoft Excel that enables users to connect to various data sources to transform and cleanse the extracted data, and create calculated reports, import files, and impressive analytical dashboards. As an extension of MS Excel, it maintains a familiar look and feel, making it more user-friendly and relatively easier to learn compared to Alteryx. 

Conversely, Alteryx is a more sophisticated data preparation and analytics platform that provides a comprehensive range of features and capabilities in exchange for substantial annual subscription fees. Similar to Excel Power Query, Alteryx enables users to connect to various data sources to perform advanced data transformation and produce output akin to those of MS Excel. For users requiring advanced data modeling, Alteryx also offers an extensive library of pre-built connectors and workflows, making it an excellent tool for data professionals who need to manage very large and complex scientific datasets.

Alteryx and Excel Power Query offer robust data transformation capabilities, each with distinct user interfaces. Alteryx’s graphical user interface displays the automation logic in a flowchart style, while Excel Power Query lists the calculation steps sequentially on the right side of the screen. Both products advocate the “LC/NC” (Low Code/No Code) concept, implying that minimal to no coding is needed to create simple reports.

MS Excel Power Query uses a scripting language called “M”. Alteryx employs a different scripting language known as “R”. To leverage the advanced features of either tool, the user must be capable of writing some computer code (as in LC- Low Code referenced above) in either language. Additionally, the user must also possess a fundamental understanding of database and programming concepts such as database schema design, query building, data constraints, looping, indexing, pattern matching, etc.

Based on our experience with both products, we believe most finance and tax departments will find Excel Power Query more than adequate to automate most of their repetitive and time-consuming manual tasks. However, if you are dealing with very large and very complex datasets, an annual subscription to Alteryx Studio combined with Alteryx Server may be a better choice.

Selecting the appropriate tool for any task is always a challenging endeavor. With decades of experience in tax process automation, we offer complimentary consultations ([email protected]) to assist you in choosing the optimal solution for your unique situation. Please contact us to schedule your free one-hour consultation.