Overdraft from banks is a popular method of financial borrowing to most businesses. As banks normally charge overdraft interest on a quarterly basis, there is not normally a proper exercise in working out scientifically the cost of overdraft interest as provision in the monthly management accounts.

Cost of interest can be fatal. Under-provision of interest cost can have nasty effect in your management accounts presentation.

Here is a spreadsheet model, in both Excel and Lotus 123 formats, which can help you to calculate as reasonably accurate as possible the overdraft interest cost for you to make provision in your accounts, or at least to guide you to generate your own format.

(After making payment for the above, you will be emailed details of how to download this product.)