3 uses of Bank Statement Data

While there are very few financial professionals who struggle with understanding the uses of bank statement data, it is a very hard sell for the creative professional to derive use from all of their available banking data.  The unlocked potential for many individuals should not be under-estimated. Your personal banking data is a gold mine of habits, unknown risks and unrecognized progress.

Quickly understand spending trends

“What you do speaks so loud that I cannot hear what you say.”

– Ralph Waldo Emerson

I can count on three hands how many times I have seen in my career a team of individuals displaying financial numbers during a presentation based upon a “gut-feeling” with zero factual basis. I can smell it from a mile away, it is always embarrassing and over-shadows any presentation. Scientific theory with no factual representation is undeveloped and in its most infant stage. Business is very literally a science with proven and unproven theories no different from physics, chemistry and biology. As a logically minded professional you should appreciate this fact and it should derive the decisions you make. Would you try a brand new pharmaceutical drug with unknown side effects due to zero testing history simply because your doctor had a fancy power point presentation and wore a nice suit?

Let’s give another example, acquiring a new studio is a big investment on your part. We have labeled a goal for your business (theory) and in order to prove whether or not the decision is worth pursuing, we need to analyze (test) your current standing for feasibility. Ultimately this decision will cause grand consequences and your ability to predict those consequences leaves you on a better footing for future goals (theories) to present themselves.

The choices you make every day drive our understanding of your projected spending. Food, travel, supplies and entertainment all represent heavy spending for you and for your business as an entrepreneur. Proper cash management comes from monitoring all spending habits. Just deciding not to take an expensive trip to The Caribbean is not the most important money making decision you can make. The decisions you make on a random Tuesday on an ordinary week at the grocery store is where prime Cash Management occurs.

Take a $6 lunch every day, that means your spending $42 per week and over $2k per year. Are you packing or purchasing every day? Do you bulk shop? There are many great remedies for your lifestyle and your business to find efficiency in your purchasing habits. Learn how to pack a lunch every morning and save 1,000 dollars+ per year. That is worth years of user subscription fees! That covers a lot of the legal fees you will be spending in year 1 as a start-up.

These small decisions drive our survival. Your bank statement is literally a goldmine for understanding your personality. There are extremely easy ways that you can complete a bank statement review in under an hour every month to obtain this useful data. You could save 200-300 dollars per month easily if you take just a 1-hour step each month.

Reliable information for tax time

 Taxes are no fun. Trust me there was a time in my life when I did them for a lot of people, 4 months of crazy. What I learned is this, taxes are meant to derive fair distribution of wealth and to pay for important civil services. The IRS is the largest social system and social institution in the world. Billions of dollars every day for redistribution across the United States. We pay our fair share and it is a beautiful thing.

For us as entrepreneurs we must play the game well in order to survive within this complex tax system. Therefore, our best friend on the path to obtain optimum tax preparedness and efficient time expenditure starts and stops with an electronic bank statement. The power within your electronic bank statement is truly inspiring. In the right hands you can remove all stress and doubt when it comes time for tax filing.

Personally I believe that little needs to be said here, it’s a mandatory step in your life. If you are ever going to invest time into something, do it well. You can make your life easy by mastering your electronic bank statements. Your tax pro will thank you directly if you can utilize the resourcefulness in your electronic bank statement.

Predict next month’s budget

Let us say in a hypothetical world that in just 1-month of better bank statement management we were able to squeeze an additional $100 out of our controlled spending habits. We could plan to build that into a grander stratagem. You could hire a social media contractor for 6 hours per month to drive traffic for instance. It is truly a wondrous thing when you can predict future spending by such small amounts.

I have a personal story to share with you regarding how powerful a predictive budget can be for the production focused entrepreneur. There was this technical game developer that I had met at a focus group an age ago. We hit it off pretty quickly and he was interested in the help that I provide other freelancers in his field with financial production conversions. After our first meeting it was apparent to me that his problem did not start at his ability to derive production information from his financial standing. Rather he was living a life in financial free-fall with no semblance of structure of his ability to project spending and income. He was losing sleep at night leading to decreased mental health, creative and productive energy. These problems are more common than we like to give credit to and the solution many times comes from some simple effort put into the creation of a projective budget based within valuable bank statement data. 

Sleep well at night each day you stick to an expectation. Life is too short to worry about money. Money is a driving force for survival, not a driving force for inspiration and production. So many entrepreneurs dread money management to the point that they allow money to control their sub-conscious. This concept doesn’t ask for you to spend much conscious time on bank statement work. Simply small investments of conscious time drive an expansion of usefulness out of subconscious time. The freedom allotted through confidence in spending habit directly brings more preparedness into your lifestyle, ultimately driving production opportunity.

In Conclusion

 At the end of our conversation I hope you leave realizing that such small investments of time can grant huge rewards of time and money for your trade. One of my favorite shows of all time is Star Trek. Every member of the Star Trek team understood the value derived from simple daily choices and their success was a representation of this fact. Live conscious of your day to day choices and approach undesirable tasks with a sense of diligent execution in order to optimize your mental health.