Clues 3 & 4: A Gentle Suggestion That It’s Time to Upgrade Your Accounting Software
Sometimes it’s hard to know when it’s time to upgrade a piece of business technology. Cost cutting measures are driving all of us to use whatever we already have for longer, but certain mission critical systems need to be up-to-date if we want to reach our goals. We wrote about this recently in an article where we share a few clues that it might be time to upgrade your financial management software.
The first clue is that Excel is everywhere you look. It’s an important tool, but if you can’t make a move without it, that’s the first clue. The second clue is that your accounting team starts to dread month end. We wrote about both of these on this blog. The next clue is a bit more...direct.
We have spoken to a number of smaller but growing institutions that have intimated that their auditors, warehouse lenders and industry consultants have encouraged them to make the move away from off-the-shelf small business accounting software. These tools simply do not provide the processing and analytical power that the modern mortgage origination enterprise requires. The two biggest reason auditors are making this recommendation are (1) overall risk to the enterprise and (2) lack of sufficient control.
Small business software, and even some industry specific accounting software, allows a user to remove a transaction. Deletion of data constitutes a significant risk and these software applications do not protect the lender against it. When a transaction is deleted from QuickBooks, the software acts as though it never happened. From an auditor’s perspective, it reveals a gap. Making an error and correcting it is a common occurrence. A gap in the record means something is missing and becomes a red flag for the auditor.
Control is vitally important in the mortgage enterprise. There are many rules about what role is required to accomplish certain tasks. The same person cannot, for instance, enter a vendor into the system, submit an invoice and cut a check. QB does not forbid this. Even industry specific software that includes functionality to protect a lender from this will allow a user to turn that functionality off.
When auditors see these problems, they are likely to tell you that you have outgrown your old accounting software and need to find a new solution. When you hear this, it’s a clue that you should take seriously.
Read the full article here, and then reach out to us to find out how much easier your life can be with the right accounting software.
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.
Say Hello to Automated Spend Management
Join us for a joint webinar with Concur on automating spend management
Tips and Tricks Series: Managing Vendor Entries
Join us for a webinar on Managing Vendor Entries
Tips and Tricks Series: Standard Vendor Invoice Import
Join us for a webinar on the Standard Vendor Invoice Import
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