May 19 2025 |
What are Bank Accounts?
A list of bank accounts outline your company’s bank accounts and provides financial 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.
ALSO LEARN ABOUT
- Statutory Financial Statements
- Reconciliation of Net Income
- Monthly Management Reports
- Inventory Reconcilation Reports
- Financial Forecasts
- Due Diligence Reports
