Bank Records

Bank Accounts

It is good business practice to maintain separate bank accounts for personal and business purposes. If separate bank accounts are not kept, you must be able to differentiate between personal and business transactions.

You should regularly bank all business income into your business bank account. You are encouraged to pay all purchases and expenses by cheque as it creates a trail of your business transactions that appears in your bank statement.

Bank Statements

Bank statements show the bank’s record of your transactions with the bank during the month. They form a vital part of your account keeping and should be safely filed away in chronological order.

The entries in the bank statement may differ from your record book entries because direct debits, bank charges and interest may be deducted from your bank account. You will not know the amount of these charges until you receive a bank statement. You are advised to do regular bank reconciliation to update your record book with the charges found in your bank statement.