E-statement analysis is a crucial step in personal or business finance management. E-statements contain critical information on incoming and outgoing transactions, as well as current financial conditions.
Every financial transaction carried out by individuals or businesses will be recorded in detail in the e-statement, which will be issued by the banking party. If we know how to correctly analyze e-statements, the risk of errors in making financial decisions can be minimized.
What are e-statements for?
Before we get into tips for analyzing e-statements, it’s important to understand what an e-statement is and what it’s used for.
E-statements, also known as electronic statements, are documents that contain a summary of financial transactions issued in electronic format by a bank, financial institution, or other financial service provider.
E-statements are frequently used for a variety of purposes, including maintaining financial condition, financial reconciliation, and recording evidence of financial transactions.
The advantage of using e-statements
Using banking account e-statements has many advantages compared to having to receive financial reports in physical form or document. These advantages include:
– Ease of access: an e-statement can be accessed anywhere and anytime via computer or smartphone device.
– More secure: in general, e-statements are protected by additional security measures such as encryption and passwords.
– Contribute to protecting the environment: its use helps reduce reliance on paper, which has a positive impact on the environment.
– Simplify management: e-statements are sometimes connected to online financial management apps. This obviously makes it easier for us to track expenses, make a budget, or manage finances more efficiently.
Easy e-statement analysis tips
After knowing about e-statements and their benefits, here are some tips to carry out easy e-statement analysis so that the financial management process stays on smoothly.
1. Check all of the information
Ensure that all transactions indicated in the e-statement correspond to the transactions that were actually made. Examine the date, amount, and transaction description carefully.
2. Check the legality
Once everything is in order, make sure that the e-statement was actually issued by the bank where we keep the cash.
3. Grouping by transaction type
Review e-statements and categorize them by transaction type. Identify monthly bills (electricity, water, internet), credit installments, and daily costs. This can help us determine how much revenue is spent on fixed expenses.
Also record unexpected expenses such as eating out, entertainment, or online shopping. This can help us identify which expenses we can reduce if necessary.
4. Track sources of income
Not only expenses but also income must be checked one by one. Examine each source of income that enters the account. This could include a salary, dividends, or other sources of income. Check that all revenue that should go into the account is correctly recorded.
5. Check for service fees, if any
Review the service fee or monthly cost charged by banks or authorized financial institutions. If you feel the cost is too high or unsuitable, consider finding a more economical alternative.
6. Using financial management tools
Use trustworthy OCR tools to conduct e-statement analysis, for example, OCR+ from Fintelite. Fintelite’s OCR+ can automatically save data from e-statements without the need for manual input.
To save automatically, we simply upload an e-statement image sent by the bank to the OCR+ dashboard, which can be accessed at https://ocr-demo.fintelite.id/.
Following that, the Fintelite system will automatically extract e-statement data and store it
according to category.
OCR+ can not only save but also analyze financial data quickly and accurately based on machine learning.
Analyze e-statements regularly so that financial management becomes good.
That was a short information of e-statement analysis tips. By following the steps above on a regular and correct basis guarantees improved management of personal and business finances.
Also, identify financial areas that need to be improved so that financial goals can be achieved fast.
