Financial Document Spreading

Financial document spreading involves extracting and standardizing financial data from various documents such as balance sheets, income statements, and cash flow statements. This process is essential for accurate financial analysis and reporting. However, when done manually, it becomes a time-consuming and error-prone task.

Here’s why:

·  Data Extraction: Extracting data manually from financial documents requires attention to detail. It involves combing through pages of documents to identify relevant data points, which is not only tedious but also increases the likelihood of human error.

·  Process Standardization: Once data is extracted, it needs to be standardized for consistency. This means converting different formats and terminologies into a common structure. Manually standardizing data across multiple documents takes considerable time and effort.

·  Data Entry: Entering the extracted and standardized data into spreadsheets or financial software is another time-consuming step. The repetitive nature of data entry tasks can lead to fatigue and mistakes, further prolonging the process.

Financial Document Adjustments

Adjusting financial data to reflect accurate financial positions and performance is a crucial aspect of real estate financial management. Manual adjustments, however, are fraught with challenges:

·  Complex Calculations: Adjustments often require complex calculations, such as revaluing assets, amortizing expenses, and reconciling accounts. Performing these calculations manually is not only slow but also prone to errors, which can have significant repercussions on financial accuracy.

·  Review and Verification: Each adjustment must be reviewed and verified to ensure its accuracy. This involves cross-referencing data and performing checks, which can be extremely time-consuming when done manually.

·  Updating Records: After making adjustments, updating all relevant financial records is necessary. Manually updating multiple records across various documents and systems is inefficient and increases the risk of discrepancies.

Financial Document Analysis

Finally, financial analysis is vital for making informed business decisions. However, manual processes can hinder effective analysis in several ways:

· Data Compilation: Before analysis can begin, data from various sources must be compiled into a single, cohesive dataset. Manually compiling data from different spreadsheets and documents is labor-intensive and can delay the analysis process.

· Trend Identification: Identifying trends and patterns in financial data requires a comprehensive view of the data over time. Manual methods make it difficult to quickly aggregate and compare data, limiting the ability to identify and act on trends promptly.

· Reporting: Creating financial reports manually involves designing templates, inputting data, and ensuring accuracy. This process is not only time-consuming but also lacks the flexibility and speed needed for real-time reporting.

The Varro Financials Module – Reclaim 75% of your time spent on financial document spreading, adjustments, and analysis.

The inefficiencies of manual processes in real estate financial management are clear. Automation offers a solution that can save time, reduce errors, and improve overall efficiency. Here’s how:

Automated Data Extraction and Standardization: Using advanced software to automatically extract and standardize data from financial documents eliminates the need for manual intervention, reducing errors and saving time.

The benefit?  You get your time back to focus on other critical tasks. 

Benefits for Lenders:

· Tailored Reporting

· Direct Connectivity

· Streamlined Integration

· Insightful Dashboards

Benefits for Loan Servicers:

· Organized Collaboration

· Real-Time Updates

· Secure Document Submission

· Automated Analysis

The hidden costs of manual processes in managing real estate financials are significant. Time wasted on financial document spreading, adjustments, and analysis can be better spent on strategic planning and growth initiatives. Embracing automation in financial management not only enhances efficiency but also provides a competitive edge in the commercial real estate market. By transitioning to automated solutions, real estate professionals can focus on what truly matters – driving success and achieving their financial goals.