Why Business Bank Statements Are Important

Staying on top of your finances and repayments can be hard. Especially when you get hit with an unexpected expense, and if you don’t have the best credit score, it can be hard to secure a loan. However, did you know there are low credit score loans out there available? To try and get your finances up together you might start by regularly checking your bank statements each month, to make sure all repayments are being made and nothing’s leaving your account that shouldn’t. The same goes for your business account. It’s equally as important to check your business bank statements and here are the top reasons why. 

Keep Track

A simple, yet effective way to keep track of your business is by checking your statements. You’ll be able to see every penny that comes in and out. This can be particularly useful if you’re trying to create a budget, as you can see at a glance how much you have left at the end of each month. You can be sure you’re not overspending too, and when you’re trying to utilise your business’s assets to the best of your ability, knowing your finances to a tee will help you immensely. 

Taxes

Whenever you start the process of filing your taxes for the year, your bank statements are a requirement when completing your report. This is so the auditor can be sure that your report accurately reflects your business account and it’s calculated correctly. 

Applying For A Loan

If you’re thinking of financing your business via a loan, the lender will most probably request your business bank statements. This is to demonstrate your affordability to them and that your business is a viable venture. 

Stop Fraudulent Transactions

If you never check your business bank statements, you might easily miss if you’ve become the target of fraudsters. By knowing how much money should be leaving your account and when, you’ll easily spot anything untoward on your statement and be able to contact your bank right away. Leaving them unchecked means the criminal activity could continue for longer and escalate to them draining your funds completely. 

Correct Any Errors

Errors happen no matter how careful you are and looking at your statements can help you spot any genuine mistakes. For example, if you’ve underpaid a supplier, you’ll be able to resolve the issue quickly and stop any potential negative effects. Without checking your statement, the issue might have gone unnoticed for longer and the supplier may come knocking on your door requesting their missing payment. 

Your bank statements can contain sensitive information, so it’s also vital that you treat them as such. You should only pass them over to an authorised party, such as a lender when applying for a loan. It’s easy to forget about your bank statements if you feel that business is doing well, you’ve checked your account, and you’re not in the negative. But without checking your statements, you miss out on so much vital information, and never going through them can be detrimental to your business in the long run.