Excel Overload: Clue No. 1 that it’s Time to Upgrade
We recently finished work on an article where we took a close look at the clues mortgage lenders will start to see when it’s time to start thinking about upgrading their financial accounting software. The article is under review by publication editors now and will soon find its way into print, but we wanted to give you a preview.
In the article, we talk about three clues that your old accounting solution just isn’t doing the job anymore. The first of these clues has to do with a piece of software we all use virtually everyday.
Microsoft Excel is not financial accounting software. It’s a spreadsheet program that can be useful for performing analysis on sets of numbers, including company financial information, but it has never been sold as an accounting package. And yet, if you find a multitude of Excel worksheets open on every desk in your accounting department, you’ve uncovered the first clue that it’s time to upgrade.
Many originators don’t try to run their business on spreadsheets. A large percentage of lenders will use an off-the-shelf accounting package, like Intuit QuickBooks (QB) or Sage products. Unfortunately, there are many things that these tools just can’t do but that mortgage lenders must, such as accounting for loan officer commission, interim servicing, loan level reconciliation and branch reporting. When growing mortgage companies bump up against the limits of their accounting software, they launch Excel.
There are plenty of problems with this and it increases the overall risk to the enterprise. We talk about them in the article, but the biggest problem with Excel is that it sucks up so much time. The manual labor involved in creating, updating and generating reports from Excel is significant, more so than many executives realize. It can literally be the difference between spending days laboring over a spreadsheet or pressing a single key.
We are certainly not suggesting Excel shouldn’t be part of the finance team’s armory of tools, but when it moves from complementing a larger tool set to being relied upon as ‘the answer’ it’s time to consider making a move.
The difference between Excel workarounds and a real mortgage accounting software application are significant.
Read the full article HERE
About the author:
Carl Wooloff is Mortgage Bank Accounting Technology Product Specialist at Bestborn Business Solutions, the company behind Loan Vision, the mortgage industry’s fastest growing provider of accounting and financial management solutions. Carl can be reached at Carl.firstname.lastname@example.org.
Tips and Tricks Series: Year End Close Process
Join us for a webinar on the Year End Close Process
Super User Training December 2018
Join us for exclusive Loan Vision training at our office in Greensburg, PA!
Tips and Tricks Series: 1099 Preparation
Join us for a webinar on 1099 Preparation
With Loan Vision, growth has been facilitated through allowing the business to run reports and extract key data quickly and efficiently"Oystein Konsmo, Chief Financial Officer, NOVA® Homes Loans
Moving to the latest version of Loan Vision will allow us to automate more and get more information to the decision makers in the branches without them having to reach out to the head officeOystein Konsmo, Chief Financial Officer, NOVA® Homes Loans