Bank Accounts

What are Bank Accounts?

A list of bank accounts outline your company’s bank accounts and provides information on:

• Account Details: Name and location of the bank and account, type of account and relationship manager
• Account Balance: Current balance and currency of the account, minimum balance requirements and interest earned on the balance
• Account Charges and Benefits: Charges related to opening, closing and maintaining accounts, conducting transactions and benefits such as overdraft facilities and credit cards

Why are Bank Accounts important for business today?

A list of bank accounts enables your company to:

• Assess the liquid balance held by your company in various banks
• Determine the amount of interest earned by your company to compute your tax liabilities
• Assess the terms and conditions related to interest rates and minimum balance requirements
• Evaluate the cost associated with maintaining a bank account and transferring money to different accounts
• Access contact information for relevant relationship managers

Why is it important for an event tomorrow?

A list of bank accounts is important for an event tomorrow, as it helps:

• Assess information on the number and type of accounts held by your company, account locations, total cash balance, currency and interest rates
• Determine the depth of your company’s association and relationship with different banks
• Evaluate your company’s account balance volatility and assess the reasons behind any variation
• Forecast future cash flows of your company by evaluating historical trends
• Understand the maximum withdrawal and overdraft limits of each account

Pros of addressing Bank Accounts

• Single document capturing all details associated with your bank accounts
• Improvement in operational planning by assessing the balance in your accounts
• Compare the interest rates and fees of your banks across jurisdictions
• Benchmark the benefits, costs and incentives associated with each account against others

Cons of not addressing this topic

• Restriction on the ability to track the total cash held by your company
• Increase in costs as minimum balance requirements and bank levies related to account opening, maintenance and fund transfer are not tracked
• Difficulty in tracking the total interest earned by your company for taxation purposes.