4 Reasons why You Should Review Your Business Account Statement Monthly
You may be wondering why you should review your business account statement every month. After all, it’s not like there’s a law that says you have to do so or anything like that. But if you’re like me, then you probably want to know as much about how your money is being spent as possible—as well as what fees are being charged for services you don’t even use! So let’s dive into why reviewing your business account statement monthly is such an important thing for any small business owner:
1. Business account statements provide an overview of your finances.
Your business account statement provides an overview of your finances. It can help you keep track of how much money you have made, and spent and where the money went. This information is especially useful if you are trying to figure out how much money is left in the bank after paying bills or debts, or if there are any unexpected expenses coming up in the future.
Account statements also provide a summary of transactions that have occurred on your account so that they can be easily compared with previous statements. If something has changed recently (such as a payment being added), this will be reflected on an updated statement when it’s received by email or post-boxed letter each month.
2. For early detection of fraudulent activity
Reviewing your business account statement regularly can help you detect fraudulent activity. Here are some things to look for:
- Unusual transactions. If a charge doesn’t appear to make sense, check the details of that transaction and ask yourself why it happened. Make sure there is an explanation that makes sense and isn’t just a mistake by the bank or other institution involved in processing the payment.
- Charges that don’t match up with your normal spending habits. When reviewing this section at the end of each month, pay attention to any charges or withdrawals involving unusual amounts—this could be an indication of fraud being committed against your business account!
Also Read: WHY YOUR SMALL BUSINESS NEEDS A BANK ACCOUNT
3. For tax purposes
For tax purposes, a business account statement is an important document. It tells you how much money your company has and how much it owes in taxes. You need this information to make better financial decisions, such as paying off debts or investing in property to generate income for the future.
It’s also important because it helps ensure that you’re paying the right amount of tax on all your earnings. If there are any mistakes with your accounts, then they could be costing you thousands over time!
4. You could save valuable money by reviewing the fees you pay
The first reason you should review your business account statement is that it could save valuable money. If you don’t review the fees that are charged to your credit card or bank account, then you may be overpaying for services that aren’t needed.
For example, if a company charges N50 per transaction and then charges an additional N5 per transaction while charging a monthly fee of N5000/month (or more), they will have made over 20% profit every month! That’s why it’s important to pay attention when reviewing statements each month so as not to miss any fees that come up during this time period—especially since many businesses offer discounts during certain times of the year such as Christmas or Black Friday Sales when customers get extra discounts on products purchased through their online store but only if they pay using cash instead of using credit cards or debit cards at checkout.”
You can use the information in a business account statement to improve your financial situation in many ways.
As a business owner, you should review your business account statement monthly. This is because it will help you identify and fix problems that may be affecting the health of your finances. By doing this, you will be able to save money by reviewing fees and expenses that are charged on your account statement. You can also use the information from these statements to improve other aspects of your financial situation like increasing sales or decreasing expenses.
So, the next time you get your business account statement, take a look at it. You’re likely to be surprised by what you find—and maybe even more surprised by how much money you can save!