Monthly account analysis statements deliver detailed information that can help your corporation save money and gain operational efficiencies. Scrutinizing analysis statements can help identify trends and changes in service use patterns, as well as opportunities to better manage banking relationships.
Regardless of your corporation's size and resources, it's crucial to pay careful attention to your monthly account analysis statements. By using this information to make key decisions about your cash management services and Demand Deposit Accounts (DDAs), your company may be able to realize significant annual savings.
Examine Usage
Your account statement will highlight inefficiencies and reveal overused, underused or dormant accounts and services. Make sure that you are fully using the services for which you're being charged. Consolidating accounts or streamlining bank services could result in lower fees.
You can also gain internal efficiencies with an account analysis review—for instance, by researching pricing for services that your bank provides to determine if outsourcing a function makes more sense than performing it in house. Oftentimes, paying a premium to your bank to perform a service is more cost effective than paying an employee to do the same task.
Study Rates, Manage Balances
You can also analyze your target DDA balances to make your cash work harder for you.
Your account analysis shows your bank's Earnings Credit Rate and the resulting value of balances left in your account. If your DDA balances are consistently higher than what is required to support your service charges, consider investing excess cash or gaining greater efficiency by purchasing additional services. You may want to utilize investment accounts or sweep services to gain better value on those funds, as compared to the earnings credit.
Detect Pricing Fluctuations
Pricing changes, erroneous fees and erratic volume numbers can go undetected if you simply treat your statement as a monthly invoice to pay. Make sure that your statement accurately reflects the fees promised by your bank and your internal volume records. If there's a spike or drop in service fees, it may reveal poor use of cash management services.
Contact your bank to discuss pricing or volume discrepancies, and request a correction and fee refund if there was an error.
Size, Internal Resources
While more companies would like to make the most of their monthly statements, analyzing account data is sometimes easier said than done. Despite its importance and value, many small companies spend little time in conducting a thorough review.
Middle-market corporations face tight internal resources. Their treasury managers often wear multiple hats and have little time for non-urgent tasks. What's more, it may be difficult for them to justify the training or extra staff required to effectively review monthly account analysis statements.
Many firms continue to receive traditional paper statements. Because analyzing paper-based data can often require time-consuming effort, these organizations may tend to review account data less extensively.
At the other end of the spectrum, larger corporations may elect to receive an electronic account analysis and invest in software that maximizes its benefits. The electronic account analysis provides companies with an ability to efficiently compare pricing, activity volumes and service usage across all their banking relationships.
Compare Multiple Bank Relationships
A simple comparison of what your various bank providers charge for a service can help you find the lowest price and reduce costs. In addition to reducing flat fees for services, you may also achieve better pricing by consolidating balances or activity volume into one bank.
Your account analysis statement can help you ensure accurate pricing and optimal use of the services you have purchased. By proactively using your monthly statement as a strategic tool, you can reduce fees and increase efficiency in your treasury operations.
