Breaking Down Business Bank Statements- Overview and Examples

Even though you might not directly be involved with the finances and therefore the bank account of your business, knowing the basics is extremely important. Knowing the financial situation of your company can even help you in your own field. So let’s take a look at business bank statements!

Whether it’s a paper copy or digital one, a business bank statement is the summary of all the transactions your business has made within a certain period. Each transaction is listed individually and allows you to see the breakdown of your income and expenses.

There are different types of things written on bank statements, and understanding these different parts is essential. Some of the things that are listed are:

• Bank information: the name of the bank, address, and other details like address and phone number
• Your information: the name of your business, address, phone number, other personal information and your account number and name
• Account summary: the beginning and ending account balance and the total deposits and withdrawals
• Transaction description: the largest part of the bank statement, this includes the date, description, amount and account balance after the transaction

Now let’s take a look at an example of a business bank statement:

Barclays

2 Churchill Place, London E14 5RB, United Kingdom

123 456 7890

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Small Business Account name: Small Business Account

Jack Smith Account number: 0000000012345

1234 Lane

London, United Kingdom

123 456 7890 Statement period: 5/25/2020-6/26/2020

Account Summary

Balance on May 25th: £25 255,50

Money in: £11 000,27

Money out: £9 347,34

Balance on June 26th: £30 344,27

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Ending balance £30 344,27

Although it might seem like there wouldn’t be a ton of uses for a business bank statement, in reality there are. Some of those uses include:

• Business bank statements are essential for filing taxes, because one mandatory part of filing tax reporting all of your assets
• When applying for a loan, banks will go through your statements in order to make sure you have enough liquidity to eventually repay a loan
• Budgeting, bank statements are an important tool to make sure your business stays within its means
• Identifying unauthorized transactions, by simply glancing at the transactions on your bank statement, you can make sure that there are no unauthorized expenditures.

Keeping track of your expenses and deposits is an essential part of any business, if not the most important part. A business bank statement puts all the information you need to know about your immediate finances in one convenient place, making it easier to monitor your situation and save you time.