Spreadsheets expose organizations to calculation drift, version conflicts, broken formulas, and undocumented changes. Over time, different users may alter logic without realizing long-term consequences. For example, a small rate change applied incorrectly across a portfolio can compound into material financial misstatements. Spreadsheets also provide limited auditability. Reconstructing how a balance was calculated months earlier often becomes impossible. This creates legal vulnerability during audits, disputes, or compliance reviews. Dedicated loan servicing software eliminates these hidden risks by enforcing controlled calculation logic and preserving full historical traceability.