Bank statements are documents that show the transactions made by an account holder in a given period of time. They include information about deposits, withdrawals, and any fees or charges incurred during that period. Bank statements are usually sent to account holders on a monthly basis, but can also be accessed online or through a mobile app.
Bank statements are important for freelancers because they provide a record of all financial transactions related to their business. This information can be used to track income and expenses, reconcile accounts, and prepare tax returns. Bank statements can also be used as proof of income or expenses when applying for loans or credit cards.
Freelancers can use bank statements to track their income and expenses, and to identify areas where they can cut costs or increase revenue. By reviewing their bank statements regularly, freelancers can also detect any errors or fraudulent activity, and take action to correct them. Bank statements can also be used to create a budget and set financial goals for the future.
When reviewing their bank statements, freelancers should look for any unauthorized transactions, errors, or fees that they were not aware of. They should also check that all deposits and payments have been processed correctly, and that their account balance matches their records. If they notice any discrepancies, they should contact their bank immediately to resolve the issue.