How to consider turnover from company Bank statements.

Question

Accepted Answer

Turnover from company bank statements is considered by analyzing the inflows and outflows of funds.

Review the bank statements to identify the total inflows and outflows of funds.
Calculate the turnover by subtracting the total outflows from the total inflows.
Consider the turnover as an indicator of the company's financial activity and liquidity.
Higher turnover may suggest a more active business with frequent transactions.
Lower turnover may indicate slower business activity or potential financial issues.
Compare the turnover with industry benchmarks or historical data for better context.
Analyze the turnover trend over time to identify any significant changes or patterns.
Consider other factors such as seasonality or specific events that may impact turnover.
Use the turnover analysis to assess the company's creditworthiness and repayment capacity.

Accepted Answer

All business related credits minus cash transaction ( according to nature of business ) like in retails customer base business transaction can be cash nature but require valid proofs to validate same. Minus cheque returns , Sales return, loan proceeding credits , capital injection , non business related transaction identify.

How to consider turnover from company Bank statements.

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