Analyzing Your Bank Statement On a daily basis

[Asad shaikh]

How many business owners take out the time to review and analyze their bank statements, daily? When we perform accounting tasks we basically record data from the bank statement and perform getting back together to your cashbook or ledgers.

Evaluating transactions on a bank statement is a different exercise from accounting for the respective items. Businesses lose thousands, due to failure to review the transactions on their bank statements, regularly.

Payments

When payments are reconciled, we compare amounts in our books to transactions on the bank statement. The payments however have to be verified as well. A discrepancy will be identified immediately when our numbers change from the statement amount, which is one objective of the bank getting back together. But what if the amount will follow the bank statement, but the check was never verified. A bookkeeper or administrator person could have just fallen the check under your nose, and you could have inadvertently signed the check, without really authorizing it. This happens, for a range of small checks, (a a large amount will catch the signatories attention immediately) and where various people deal with preparing the check, and the owner only signs.

Standing orders and bank charges

How many "deductions" on a bank statement go hidden? Anyone who gains access to your bank account details can draw on your account. The culprits range from legitimate companies to con artists.

Big companies sometimes commence deducting amounts prior to the agreed date. On many occasions standing, debit or stop orders, are not even signed, but amounts are taken. Fake bank statement for apartment Experienced business owners will deal with such problems immediately, but others will overlook this sad state of affairs. Stop and reverse payments at your soonest.
Scams are the other strategy employed by many thieves to remove cash from your accounts. Deceptive e-mails by people purporting to be from the bank, requesting a confirmation of your bank details and account details, if you use Internet banking. If a merchant account number (and password) is supplied, a large amount can be taken, and by the time, you identify the problem, it could be too late.

Bank charges

If your business apply Internet banking, a bank is not supposed to levy balance or statement enquiry fees. Banks tend to charge for the silliest of items. Loyal bank clients are entitled to a substantial reduction of bank charges. When you see those huge bank charges contact your banker. Also verify whether your bank is charging interest, when a loan or overdraft facility on your account is not in place..

Deposits

A common scam worldwide is the "mistaken" deposit of a large amount into innocent business account. The thieves than call to demand a refund of this amount, and their wrongly recognized deposit will bounce, leaving the business cash secured, if they refunded. A further problem, is that they also possess you bank details, and can withdraw amounts. Know them, and have proper arrangements for payment. Refer to referenced deposits only.