How to Make Business Bank Statements

A business bank statement records all financial transactions within a company’s bank account over a specific period, typically one month. It details money moving into and out of the account, showing each transaction individually. This document is a fundamental tool for tracking income, expenses, and overall cash flow, offering a clear snapshot of a business’s financial activity.

Establishing a Business Bank Account

A dedicated business bank account must be established to generate business bank statements. Separating business finances from personal funds is a foundational step, offering clear financial tracking for tax purposes and enhanced personal liability protection.

For sole proprietorships, a Social Security Number (SSN) is often sufficient, though an Employer Identification Number (EIN) is recommended for broader business activities. LLCs and corporations require an EIN, along with state-issued formation documents like Articles of Organization or Articles of Incorporation. Partnerships need a partnership agreement detailing all partners and the business name.

Most banks require a business license or permits relevant to the industry or locality, and any assumed name certificates (DBA) if the business operates under a name different from its legal one. Proof of business address, such as a utility bill, is also requested. All authorized signers must provide valid personal identification, such as a driver’s license.

An Employer Identification Number (EIN) is a federal tax identification number issued by the IRS, similar to a Social Security Number for a business. It is necessary for most business entities, including corporations and multi-member LLCs, for tax filings, hiring employees, and opening bank accounts. Businesses can apply for an EIN for free directly through the IRS website, with immediate issuance upon online application.

Accessing Your Business Bank Statements

Once a business bank account is established, accessing statements is primarily through digital means. Most financial institutions provide online banking portals where business owners can view, download, and print monthly statements. These electronic statements, often in PDF format, are usually available shortly after the end of each statement period, offering convenient access to transaction history.

Many banks offer the option to go paperless, delivering statements exclusively online, which can sometimes lead to fee waivers. Businesses can also request physical paper statements to be sent via mail. While some banks provide paper statements without charge, others might impose a fee.

For older records, historical statements can be requested directly from the bank. The process for obtaining these can vary; some banks allow downloads from online portals for a certain period, while others may require a direct request to customer service. Retrieving historical statements beyond a readily available online period might incur additional fees and take several business days to process.

Reviewing Your Business Bank Statements

Reviewing business bank statements is crucial for financial management. This includes performing a bank reconciliation, which compares transactions on the bank statement with the business’s internal accounting records, such as ledgers or accounting software. This comparison ensures both sets of records align, providing an accurate picture of the business’s cash position.

Key components on a bank statement include the beginning balance, total deposits, total withdrawals, bank fees or interest earned, and the ending balance. Each transaction lists the date, description, and amount. Businesses should check each entry against their internal records for consistency and accuracy.

Common discrepancies during reconciliation include outstanding checks that have been written but not yet cleared the bank, or deposits in transit that have been recorded but not yet posted. Other issues include unrecorded bank service charges, interest earned, or electronic funds transfers. Errors made by the bank or unrecorded/duplicate transactions in the business’s books also need identification and resolution.

Regular review of bank statements helps detect fraudulent activity or unauthorized transactions promptly. It also helps maintain accurate financial records for tax preparation. Consistent reconciliation aids in effective cash flow management and ensures reliable financial data for budgeting, planning, and informed business decisions.