It is said “what is written, gets done”. We firmly believe in this adage and follow it religiously. Hence, we have designed a calendar called Banking Compliance Calendar which boasts of a lot of special features – as elaborated hereunder:
- The Calendar shall highlight all types of banking tasks that needs to be done (Bank wise) with specific date mentioned.
- This also clearly depicts various daily, weekly, monthly, quarterly, half yearly and even annual tasks – which needs to be completed within the set deadline.
- Cushion is built on the timelines so that none of the banking compliances gets missed. This in turn ensures better credibility in the eyes of lender and thus avoiding any penal charges for non-compliance.
Overview
Every business has a set of compliances and regulatory obligations that they need to fulfill within a specified period or at a certain date. These deadlines need to be met diligently to avoid penalties from various statutory authorities. The best example of this could be your tax filing deadlines or interest payment date.
Banking Compliance Calendar
Similarly, a banking compliance calendar is one where SMEs and businesses maintain a calendar to fulfill their obligations towards the banks as borrowers. Be it regular tasks like, interest payments, submissions of documents, loan renewals, or event-based tasks like updation of KYC, change in shareholdings or shift in office address, etc.
Benefits of a Banking Compliance Calendar
As it is said, “The trouble is you think you have time”. While we keep thinking this we tend to either skip, forget, or act too late for our deadlines. Sometimes this delay may result in penalties, fines, or even a bad reputation leading to reduced goodwill and credit ratings when it comes to banks and borrowing. Let’s have a look at what are the benefits of maintaining a Banking Compliance Calendar:
Timeliness
Making a Banking Compliance Calendar makes your entire compliance adherence more structured and that makes tasks easy for everyone involved. There are specific deadlines mentioned month on month so that no deadlines or filings are either missed or overlooked.
Improved Resource Allocation
Once you know what is coming up you are better equipped to fulfill those tasks by allocating manpower, time, and responsibilities to the team. Setting reminders, timelines, and cushion makes the team more effective while handling any banking compliance work.
Accountability and Responsibility
It offers a centralized mechanism to monitor progress towards work completion. This makes it easy to monitor all banking compliances in a central place. Since dates are set and tasks assigned we get a clear picture of the WIP. Making teams accountable and hence more effective towards the completion of the tasks within a set timeline.
Updated Regulatory Framework
The banking compliance calendar can be updated regularly to accommodate different compliances and deadlines set by different lenders/banks. This will help the SMEs and corporates stay up-to-date with the changing terms and conditions regarding compliances and submissions. Be it a CMA report or simply interest payments, nothing will be missed once documented.
Proactive Perspective
When we have documented and set deadlines, when we know our compliances and assign the tasks we can take charge of our compliances with the different banks. All corporations transact with more than one bank at a time. The banking compliance calendar makes it very easy to manage various banks and their respective compliances once we have taken out time to prepare the all-inclusive banking compliance calendar.
Hence with this tool to manage your compliance, your company will never miss deadlines or be penalized for the same. This will also be beneficial for annual audits and other regulatory commitments.
Inclusions in The Banking Compliance Calendar
Making a banking compliance calendar for the SMEs/corporations will help them in different ways as mentioned above. Now the question arises what does the banking calendar entail and encompass? Let’s look at them briefly:
Application, Approval, and Disbursement
Keeping track of the dates when the loan needs to be applied for so that the flow of money is available at the right time when required for the business is the most important task to begin with. Keeping all requisite documents ready, getting the signatories and approvals internally and final submission for the loans need to be tracked and hence find the utmost place in the banking compliance calendar for any company.
They need to maintain a record of the date when the loan was approved and then disbursed, this can help avoid overcharging of interests of any kind by the banks. If the disbursements are made at different timelines we need to keep track of the same as well and hence need to add to our banking compliance calendar
Compliance Reports and Documents
Every loan application or renewal needs to be backed by a set of documents that the company has to submit to the banks either at the beginning or regularly during the entire tenure of the loan. These documents would entail CMA data, Balance sheets, P&L, financial projections, asset charge creation, etc. Scheduled dates for the submission of such reports and even for audits etc that the banks would like to do from time to time and the company needs to be ready for the same.
Interest Payments, Repayment, or Prepayment schedule
Specific dates when interest payments or repayments are due, details of the payment amount, adjustments if any. Seeking a moratorium in case a need arises. Offering for prepayment of corporate loans to clear asset charges or simply making requests for change in any loan terms. All these dates are of great importance and failure to adhere to the timelines may attract penal charges.
Collaterals and Insurance for Corporate Loans
Any insurance cover related to the loans needs to be updated and renewed regularly. For instance, if we have taken a loan on the collateral of any property we need to keep renewing the insurance for that property and missing out on the same may lead to great losses. Creating a charge on one asset should be notified to the ROC and when that charge is released the same has to be notified again so that in the event of using the asset as collateral for any other loan we do not face unnecessary delays leading to hindrances in the company’s workflow.
Updates on any Changes and Amendments by Bank
Banks may update a certain term or policy which may affect the company and its loan management process. These regulatory changes need to be tracked and updated in the banking compliance calendar so that we are on track with our loan schedules.
End of Loan
Keeping track of when the final payments have to be made and completion of all related paperwork to mark the end of the loan is as important as the beginning. This has a direct impact on our creditworthiness, score, and ability to apply for new loans.
Types of Compliance Calendar
The SMEs and corporates can choose the way they wish to maintain their banking compliance calendar. A few types are listed herewith:
Hardcover Diary –
Some old-timers will still swear by the good old diary entry system. This is a good method when the task is individual as we cannot easily share this diary with different departments.
Email Calendars –
You may use Outlook or any other software that your company uses to create the banking compliance calendar. However, this may not completely allow the users to maintain all compliance entries. Making it vulnerable and risking the missing out of important compliances. This type of calendar is best suited to remember corporate events and birthdays.
Spreadsheet as Calendar –
We can use these sheets to maintain the banking compliance calendar, but it will be beneficial only if the tasks and people involved are limited. The need for creating different calendars for different banks can be tedious, maintaining and updating the same will need a full-time resource as well.
Software-Based Calendar –
This is the most reliable form of calendar, and using the software will be highly beneficial and recommended for easing all your banking compliance needs. This makes the task effortless, all bank compliances can be managed in one place, the tasks can be assigned/delegated to different departments, automated reminders can be sent for all tasks, and status reports can be monitored through reports and dashboards. It can also be used to give escalated information when any task is overdue beyond the time limit prescribed.
Focus on your Business; We’ll take care of your Banking needs
Role Of BankKeeping:
While software-based calendars are the most recommended types of banking calendars, it may be very difficult to find one that suits your banking needs specifically. This is where BankKeeping comes into play, we have a dedicated and specialized banking compliance calendar software where all your banking regulatory mandates can be managed with ease. Since this is a banking calendar designed specially to handle all your bank-related compliances, it boasts various unique features. A few of them are mentioned below:
- It highlights all banking tasks, be it major or minor, reflecting your tasks, adherences, and document submissions that are needed by the banks from time to time.
- Can differentiate between different banks the company is dealing with and maintain compliance deadlines for each of them separately. In some banks you may just use it for in-house transactions, some may be lenders and some may be guarantors. All these can be managed in one place, without the headache of keeping track of all and risking missing out on the deadlines for anyone.
- It can clearly state the daily, weekly, monthly, and annual tasks that need to be completed to be able to operate and be ready before the deadline
- Cushions are built on timelines so that nothing is justify to chance or last moment rush. This not only avoids mistakes, mental pressure, and penalties but also creates credibility for the company in the minds of the lenders, positively affecting the overall credit rating and reputation of the borrower/SME/corporate.
Not just these but, we at BanKeeping are a team of experts, who can help you in your day-to-day interactions with the bank and also guide you with appropriate letter writing, form filling and even negotiating with the banks for the loan application or renewal thereof. This can save you a lot of overcharged interest or may even get you a corporate loan with better terms.
Be Ahead of Deadlines with BankKeeping
All these tasks related to the banking compliance calendar may seem challenging for the owners and staff of an SME or proprietary firm that is already busy with lots of business-related projects. It is not always easy to stay on top of things with all the things that go on within the daily working of an organization. Fret not and leave the annoying daily reminders to the effectively designed Banking Compliance Calendar by BankKeeping that will help keep your business compliant and on time with all your banking needs.