What is bank account analysis?

Bank account analysis is a periodic review of bank account fees, services, and activity to ensure the firm is using appropriate account types, minimizing fees, and optimizing banking relationships. For professional service firms, this analysis can reveal unnecessary fees, underutilized services, and opportunities to improve cash management through better banking arrangements.

Key characteristics

• Reviews bank fees and service charges

• Evaluates account types and structures

• Identifies fee reduction opportunities

• Assesses service utilization

• Compared to alternative banking options

• Should be performed annually at a minimum

Why it matters for professional service firms

Bank fees accumulate without attention. Monthly charges, per-transaction fees, wire fees, and service fees can add up to thousands of dollars annually. Bank account analysis reveals actual costs and identifies savings opportunities. Professional service firms should review bank statements annually, understand all fees charged, question unfamiliar charges, and compare with alternative providers or negotiate better terms.

Real-world example

Kevin's firm never questioned bank fees. Annual bank account analysis: monthly maintenance $45, per check fees averaging $85, wire fees $180, merchant services $320, miscellaneous $95. Total monthly: $725 ($8,700 annually). Opportunities identified: qualify for a fee waiver by maintaining a minimum balance, reduce check volume by shifting vendors to ACH (free), and consolidate merchant services. After negotiation and changes, the monthly fees dropped to $285 ($3,420 annually)—the $5,280 annual savings required only a few hours of analysis and conversation.