Lending Software Solution Spotlight: Statement Spreading
Spread a Statement Your Way
Every lending software solution has plenty of features – even when it comes to the basic functionality of statement spreading. Each vendor thinks they know the best way to spread, and they surely hope that you will agree. I am a picky user of all software, and I can certainly suggest different ways for it to perform that I feel would make my life easier. The best feature that a user like me can ask for is the ability to customize my experience. The way that I describe Baker Hill NextGen® is “highly configurable.” When it comes to statement spreading, our lending software solution provides an excellent baseline experience, offering industry specific templates and reports to get you up and running immediately. For power users, this is where Baker Hill NextGen® really shines. Create new statement templates if you wish, defining each chart of account line, its line title, the order it’s in, etc. Build new reports for your template from scratch or copy one of the standard reports and make subtle adjustments. You can add covenants by selecting from a list of the most used ratios or add any new covenant formula you can think of. While you’re spreading, add cell comments and end notes that appear in your reports, perform calculations within a cell instead of reaching for the calculator, update statuses on covenants and enter all sorts of details in each period header. Use period statuses to track changes, enter currency conversion rates for every year you need them, re-arrange the period order, or hide periods from view while you’re working. I could go on and on and I haven’t even mentioned projections. Yes, you can also take an existing statement and easily create a projection from it. Forecast up to 12 periods out with different assumption factors for Sales, COGS, Inventory, Capital Expenditures and Debt.
You have probably guessed by now that I’m a fan of Baker Hill’s lending software solution for statement spreading, but aside from the features I’ve already mentioned, my favorite is how you are able to leverage all the hard work you have done while spreading in the other Baker Hill NextGen® Modules. Cash flow and debt values flow from the statement into the Debt Analysis Operation of Loan Origination, so the information is at your fingertips when you need it and all within the lending software solution. If credit bureaus are pulled and return tradeline information you’ll see that in the Debt Schedule of the statement. Baker Hill NextGen® puts the relevant information where you need it inside your lending software solution when you need it. If I haven’t convinced you yet, you can use the statements of one entity or several entities and create a Global Cash Flow report with other members of a group. Groups are super helpful in our lending software solution and can now be automatically created for you! However, a Global Cash Flow report isn’t the only reason to use Groups in Baker Hill NextGen®; you can also compare entities in a specific industry using a Peer Comparison Report. If you need to aggregate financials across several entities in a group, you can create a Consolidated Statement and see everything in one place.
This entire time, I’ve been thinking about your experience using Baker Hill NextGen® Statement Spreading manually, I nearly forgot that our lending software solution can automatically spread your statements for you! You can upload tax returns and let the system spread them exactly as you wish because you are able to edit how every box on the tax form is mapped to the statement template. Additionally, if your customer is using bookkeeping software, you can request that they electronically send their Financial Statement to Baker Hill NextGen®, where it is spread automatically. It’s kind of magical. People who take advantage of all that a lending software solution like Baker Hill NextGen® has to offer get the greatest lift from Statement Spreading. I think I’ve rambled on for long enough. If you’re using another lending software solution today, give Baker Hill NextGen® a look… I doubt you’ll go back.
Baker Hill has been providing innovative lending software solutions and expert guidance to banks and credit unions for over 35 years. Built by bankers for bankers, we know the importance of automating manual processes like statement spreading. If you’re interested in more ways to implement digital processes into your institution, you can download our whitepaper on how banks and credit unions are leveraging technology.
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Posted on Wednesday, September 8 4:30 PM