Tax Return Spreading for Commercial Loans

Any underwriting process related to a commercial loan will likely involve one important document— the tax return. In tandem with other business statements, this highly relevant document helps lenders determine the viability of a borrower as a candidate for a loan. Automatic spreading software such as FlashSpread can facilitate any loan that requires a tax return in multiple ways, streamlining processes, saving time, and helping underwriters make better decisions. 

Stay Current on Tax Form Updates

One of the major frustrations for anyone dealing with the IRS comes down to the fact that anything and everything can change year over year. A form that has been standard for a decade can have an entirely new format the next. Line items appear and disappear time and again. There is hardly ever any consistency in documentation when dealing with the US tax system. 

FlashSpread stays on top of all tax form updates. The team at the software company update FlashSpread’s templates every year as soon as they are available. As an underwriter of a commercial loan, you never have to worry about differences year over year or that a new form won’t work with the system.

Scanned and Digital Returns

Filing taxes may have gone digital, but many businesses and individuals are still sticking with the analog. To that end, you might receive a digital copy of a return from one borrower and a scanned copy of an analog tax return from another. FlashSpread handles both formats with ease. Unlike other companies, FlashSpread can handle any PDF document (scanned or digital) and even has a method for dealing with unreadable values hidden behind watermarks. 

Personal and Business Returns

FlashSpread processes both business and personal tax returns and all the most frequently used supporting schedules, as well, giving you as much flexibility as possible. Forms and schedules that work in FlashSpread include: 

Personal Returns: 1040

• Schedule 1
• Schedule A Through F
• Schedule K-1
• Form 4835

Corporate Returns :1120, 1120s – 1065

• Schedule L
• Schedule M1/M2
• Schedule K-1
• Form 1125-A
• Form 8825

And remember: FlashSpread updates these forms every year automatically so that you always know you are ahead of the curve. 

Speed Up Your Processes

Document intake is one of the most time-consuming parts of the underwriting process. By streamlining this step, FlashSpread helps you save a significant amount of time during the loan approval process. Saving time means your institution can of course save money, but it also means that your underwriters will have more energy to put towards more high-priority work. 

A smoother intake process will keep your customers happier, too. Automated intake via FlashSpread means your underwriters won’t have to circle back to customers again and again, leaving your customer more likely to recommend you and maintain a long-term relationship with your company. 

Reduce Human Error by Automating Tax Return Spreading

By eliminating manual entry and digitizing the process with FlashSpread, you also have the opportunity to reduce one significant problem — human error. Automating manual data entry by leveraging a solution such as FlashSpread allows you to extract and organize data at scale without increase data error risks. The patented algorithm is even designed to spot human error that already existed in the data. Several layers of business logic assess all totals balance to determine that the data you receive was clean to start with. In fact, this approach is so robust that FlashSpread has even been known to spot CPA errors in submitted forms.

Automation is transforming tax return spreading, helping to ensure that lenders can work more efficiently and effectively. Solutions like FlashSpread are leading the charge, making a key part of the underwriting process that much easier for all involved. To learn more about FlashSpread and how it can help your commercial lending efforts, contact us today.