Spreading Financial Statements – Everything You Need to Know


Spreading Financial Statements exactly refers to a course through which banks essentially deports the financial statements from a debtor’s financial account to its financial system for analysis purposes. Spreading financial statements in an excel file is a very time-consuming job

What does it mean?

It is a structured and systematic method that the banks use for putting the borrower’s financial statements of the previous years into an excel sheet or a spreadsheet. This helps the banks to have a clear analysis of the financial transactions and statements, and to correlate them when required.

Let us discuss the spreading of financial statements in detail for a better understanding.

What makes spreading financial statements a tougher job?

This requires patience and concentration, it is very time exhausting work. One needs to manually type and make the entry of each financial statement as most of the statements are hard copies of documents or digitized copies which are usually scanned. Acceleration, agility, and accuracy are very important for this task to be carried out properly.

Few points that can help in the process-

  1. Momentum and acceleration
  2. Efficiency and skill
  3. Combination of integrity and amalgamation
  • Momentum is extremely important when it comes to transforming a written file into a spreadsheet. The key to it is patience and acceleration and to take the help of the latest technologies like Artificial Intelligence, this also helps in the improvement of data input.
  • An efficient person can extract the correct documents to input and attain the maximum accuracy for better data analysis. Latest and upgraded technologies are used for this purpose.
  • The right combination and amalgamation of data input tools and software are required to make sure the data input is carried out as required.

What comes out of spreading financial statements?

The banks create the financial statements for a better self-understanding, as to where the banks stand in respect of financial structure and wit holdings. Below are the impacts the financial spreadsheets leave-

  1. An overall account report
  2. The statements of financial income
  3. The balanced ratio between a borrower and a bank
  4. An updated statement revealing how much cash is flowing
  5. Rapprochement of the net valuation

Spreading financial statements also helps reduce the percentage of risk among banking institutions. The methods vary and depend solely on the banks. The dominant part of banking analysis lies in spreading financial statements itself.

  1. Spreadsheets are the most common and effective way of financial data input. To reorganize the data into an excel spreadsheet requires efficiency, but the values are updated correctly. The characterization of an excel spreadsheet which includes a grid, lines, and boxes makes it a lot more convenient to keep a track of the financial statements that are updated. Most analysts prefer spreading financial statements to excel over other methods of data input.
  2. Balance sheets are another frequently used method for data input. The balance sheet has a similar concept and characterization as the income statements. The liabilities and assets are to be matched and tallied properly. Spreading a borrower’s financial data is easy and seamless through a balance sheet.
  3. Many analysts use spreading the financial data through percentage valuation of the annual net worth.

The banks closely analyze the financial data and determine how much loan can be granted and what profit can be earned through the other deals. It also helps in picturing the annual financial structure of the bank and where it stands.

The volume of transactions is also closely analyzed and calculated based on the reports obtained. It is very helpful for identifying risks in any transaction from the bank’s side.


A good spreading of financial statements is widely appreciated. It examines and decides the financial health of a bank, and this is why spreading financial statements is an extremely important aspect of a banking institution.

Each financial statements is different and serve completely different purposes for an organization. There are proper guidelines that the banks need to follow for spreading financial statements. The summation of financial statements helps in better understanding where the gap lies and how to fill that up.

Related Link:Understanding and spreading the Business Financial Statements