Every business owner has so much to do and pay attention to on top of running their business. One thing they must do, which many may not like, is verify and track various business records. So, what records and information should business owners verify and keep an eye on?
All the transactions within a business are compiled and recorded as financial information in the relevant accounting records and documents. These documents include information about expenses, equity, and income. This information is so important because it is the basis used to create financial information and to keep an eye on various business ratios like customer acquisition costs and customer churn.
To make any use of this data, a business owner must verify that it is complete and correct. Tracking this information will inform business owners of their business’s health, help them make better business decisions through analysis, help them determine if the business has enough cash flow, and measure profitability in the long term.
User Account Information
If you have not been validating user bank account information before transactions, you might not know why it is crucial to do so. The first reason is fraud. You can prevent fraud by ensuring the person making the payment is the owner of the debit or credit card, or bank account. You can also do so by ensuring the banking information provided by a user is legitimate.
The second reason is user conversion and abandonment. The former is increased, and the latter decreased when you validate user account information. You provide a seamless payment option if you ensure all customer and user accounts are ready to make the payment at the time of making it.
Bank account validation is something every business should be doing, and it is now easier than ever to do so. You can use the bank account validation service from Envestnet | Yodlee which creates solutions for businesses and entrepreneurs. They use data to create products and services that help with open and retail banking, wealth management, financial wellness, and payments across stores and online.
It is not uncommon for a business to take a loan for expansion or for purchasing additional stock. What is important, though, is that the businesses can pay back what they have borrowed. To ensure all obligations are being met, a business owner has to track all loans they have taken on the business’s behalf.
Crucial information to track here includes when the loan was issued, monthly payments, interest rates, due dates, and the expected completion date. The reason for tracking this information is so that the business does not default on a loan, which would put it in jeopardy. Additionally, a business that can pay off a loan faster, if allowed, endears itself to lenders which increases the chances of a second loan being approved if requested.
Tracking all the information above is crucial if you want to know what is happening within your business. There is no right or wrong way to go about this, but the most important thing is to ensure you are working with accurate data, and that you can keep an eye on it.