Good management accounts give directors an honest monthly picture of the business, and any borrowing has to be reflected accurately. Your Credicorp statements carry everything your bookkeeper needs to do that.
The three figures that matter
From each statement your bookkeeper takes the outstanding balance (a liability on the balance sheet), the interest and fees for the period (a cost in the profit and loss), and the repayments made (splitting principal from cost). Your statement separates these clearly — see understanding the charges shown on your statement and how payments are allocated to your balance.
Posting it correctly
The outstanding balance sits as a creditor; the cost of borrowing goes to interest/finance costs. Reconciling the statement to the bank feed each month keeps the ledger accurate — see how to reconcile a statement against your bookkeeping software and using statements to reconcile your facility.
Keeping the trail for year-end
Filing each monthly statement as you go means year-end is a matter of totting up rather than hunting. See year-end records and your Credicorp facility and scheduling regular statement downloads.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance arranged outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or the FSCS, though you can still raise a complaint with us and we will handle it fairly.
See also: How to reconcile a statement against your bookkeeping software, Using your statement for VAT and Corporation Tax, Year-end records and your Credicorp facility.