Manually inputting each line of a financial transaction into a spreadsheet has become a daunting task. However, with the advancement in technology and automation, financial spreading software is launched to eliminate manual efforts. Banks transfer data from borrower’s financial statements to the bank’s financial analysis program, which is defined as financial spreading. It involves inputting borrower’s financial statements and tax from past years into a spreadsheet or financial spreading software. The process makes it easy for the analyst to make financial comparisons of the past several years and identify trends. The software has revolutionized the financial industry by improving the speed, integration, and accuracy in performing confidential as well as redundant tasks. Below listed are few ways in which the financial spreading software has benefited businesses:
1. Speed
The financial spreading software is equipped with technologies like artificial intelligence(AI), machine learning(ML), and optical character recognition(OCR). These features have greatly helped to spot analog data into digital space and accordingly automate repeated processes. Additionally, automation has also improved the speed of data extraction, which earlier was a huge hassle.
2. Accuracy
The introduction of Artificial Intelligence and machine learning technologies in financial spreading has exponentially increased the accuracy of processes. When the financial information is uploaded correctly, this software generates meaningful financial reports by which the company can infer its future financial conditions. Any chances of human error have completely been eradicated, resulting in a much more efficient auditing process.
3. Integration
The automatic system of financial spreading has ensured that data sets are properly and consistently input in the software, eliminating chances of errors. The features of the software facilitate data collection, reporting, comprehensive credit reports, global cash flow, and much more in one central location.
4. Flexibility
The tool has benefited the banking software systems by offering a wide range of formats and features to meet your needs of financial analysis for commercial lending. The built-in industry standards, specialized formats, and templates have made it easy to file drafts.
5. Current Comparative Data
The financial spreading software offers reliable comparative data by giving Direct Access to a complete database permitting direct and immediate comparison of a subject company to the industry.
THE BOTTOM LINE
The introduction of financial spreading software in the financial industry has revolutionized data analysis. The software also aids the process of credit risk modelling to determine the probability of default of a particular customer. It has increased the efficiency and expediency that is required of these tasks dramatically hence proving to be time-saving for any business.
