Familiar with the term bank statement related to the banking world? This report is one of the important reports for businesses in managing transactions and knowing your company’s finances as a whole.
For business or business activities, of course, you are also familiar with transactions at banks, where all the reports are often referred to as a checking account.
This statement in the banking world is a summary of financial transactions that have occurred during a certain period in bank accounts held by companies in financial institutions. In addition, you can use accounting software to facilitate the management of your business financial system.
In recent years, there has been a shift in the paperless printing of electronic reports. For more details, read the explanation below.
More Depth about Bank Statement
Meaning of bank statement is a summary of the overall financial transaction process of an account. The transaction can be in the form of a personal account or an account of a company.
In this report, later you can find debit and credit flows, as well as transfer history between customers. The bank directly sent all the transaction data directly to the account holder. Each bank has its own rules and regulations regarding this matter.
You also have to apply for the issuance of the report directly to the branch bank office. Usually, some banks will ask for a fee to issue the report. However, along with technological developments that have also penetrated the banking world.
The Functions for Businesses
1. Knowing the summary of transactions
The main function is the same as a passbook, which is to display transactions that occurred over a certain period of time.
The information contained in this summary is about the total balance at the beginning-end of the month, debit-credit flows, and administrative fees. For businesses, this report is important to ensure that all transactions are under control and minimize any fraud or fraudulent actions that occur in the business.
2. Be the legal basis
Current accounts can be valid legal evidence if at any time you are involved in a dispute with another party or your partner related to the account mutation, whether it is regarding the value or time of the mutation.
For example, when you believe you have sent some money to pay for an order to your raw material supplier, but the supplier does not feel that money has been sent to your account, so your order cannot be processed. Then this report can be a weapon and a strong legal basis to prove your truth.
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3. Applying for a loan
If your business needs funds and wants to apply for a credit or loan through a bank, P2P lending, or other lending institutions, a checking account can be one of the documents that you can use to apply for a loan in addition to detailed financial reports.
This summary can be one of the documents. you can support when you submit or make certain requests to provide evidence that there is a healthy financial flow in your business. Automate your daily business operations and optimizes client requirements fulfillment in a real-time platform with ERP System for Financial Sector from HashMicro.
4. Participate in auction activities
If you are interested in participating in the auction as a business entity, besides you are required to show SIUP, you will also be asked for a summary of the transactions from your business. Especially if the auction is a private or government-owned project.
Don’t forget to attach bank statements and financial statements in the tender requirements document.
5. Company financial audit
As a company, this report is very important. The function of the company is to recap the financial register, both inflow and outflow transactions. So if there is something unusual in the company’s account transaction, this can be processed immediately.
There are many functions of checking accounts for you and your business, but we only discuss the important one. For those of you who wants to open an account, make sure you accept and ask about the current account reporting system that you will get later. It is very important to know your transaction history.
For you business owners, checking accounts are closely related to bookkeeping, especially for reconciling banking transactions. If you use manual bookkeeping, the bank reconciliation process is a very time-consuming process. In addition, with the amount of financial data in the company, you will have difficulty tracking specific data, such as bank statements, when you need it. Therefore, you need Accounting Software from HashMicro that can automate your financial work. This software has many benefits, such as optimized efficiency, real-time data, improved accuracy, and increased profitability. With the HashMicro system, you can perform an automatic reconciliation process that will make it easier to record every business transaction. If you want to try Singapore’s best accounting software, you can try it through this link.