What is a statement?
Statement A statement is a detailed list of all the financial transactions that have occurred in your account over a period of time. Through the statement, account holders can track their income, expenses, and account balance during the statement period. This not only helps you manage your personal finances but also provides an overview of your cash flow.
Statements can be issued in paper form (paper statements) or electronic form (online statements), and are sent periodically on a monthly, quarterly or customer-request basis. Each transaction recorded on the statement will include information such as the date of the transaction, transaction description, amount, and account balance.
Statements are an important tool to help you control your budget, track your spending, and detect invalid or inaccurate transactions. Statements are also used in many other financial situations such as loans, tax refunds, or proof of income.
Real life example: When you make a bank transfer, the statement will record information about the amount transferred, the recipient, the transaction date, and bank fees (if any). This helps you check and verify the transactions you have made.
Bank account statements show transaction details by date and balance after each transaction
What is a bank statement?
Bank statement A bank statement is a detailed copy of your bank account transactions issued by the bank itself. A bank statement not only provides information about your account balance, but also shows all financial activities in that account such as transfers, withdrawals, service fees, or interest.
Bank statements are very important for people who regularly conduct banking transactions. They help you check your transactions, reconcile your account balance, and track any fees you incur.
Real life example: Suppose you have a checking account at a bank and make transactions such as shopping, transferring money to relatives, paying bills. Bank statements will show all these transactions, helping you track changes in your account and help you control your spending effectively.
What do you need for a bank statement?
One bank statement Complete and accurate information usually includes important information such as:
Account information:
Include your bank account number, account holder name, and bank branch. This information helps you confirm that the statement is for your personal account.
Statement date:
This is the date the bank issues the statement. The statement date is usually the last day of the statement period, for example the 30th or 31st of the month, or the last day of a quarter.
Transaction details:
Transactions will be listed in chronological order, including:
- Transaction date
- Description of transaction (transfer, payment, deposit, etc.)
- Transaction code
- Transaction amount
- Account balance after transaction
Account balance:
Update your account balance after every transaction. This helps you know your financial situation at any given time.
Fees and income:
Bank statements will list service fees such as account maintenance fees, international transaction fees, or wire transfer fees. If your account earns interest or discounts, your statement will also reflect these.
Real life example: When you make a transfer to someone else's account, the bank statement will clearly state the recipient's information, the amount transferred, and the time of the transaction. If there are any fees such as international transfer fees, the statement will also reflect this.
Online bank statement template includes account holder name, transaction details and service fees
What is the statement date?
Statement date is the day the bank issues your statement, and this is the end of the statement period. The transactions on the statement will be recorded between the first day of the statement period and the statement date.
The statement date is important because it helps you determine the exact time range of your transactions. If you make a transaction close to the statement date, it will be recorded on that period's statement. Additionally, the statement date also affects the payment due date of debts (such as credit cards), if you use credit services.
Real life example: Let's say your statement date is June 30. All transactions from June 1 to June 30 will be recorded on your June statement.
What is the statement payment term?
Statement payment term is the amount of time you have to pay the debts or fees listed on your statement, especially for loans or credit cards. Usually, the bank will require you to pay the debt amount within a specified period of time, which can be from 15 to 30 days, depending on the bank's regulations.
Paying on time will help you avoid late fees and interest charges, and maintain a good credit score. If you don't pay on time, the amount owed will be charged high interest rates and can affect your credit history.
Real life example: Let's say your statement date is June 30 and your bank has a 15-day payment term, then you need to pay the outstanding balance by July 15 to avoid late fees and interest.
Benefits of statements for financial management
Bank statements not only help you keep track of your transactions, but they are also an important tool in managing your personal and business finances. Here are some of the benefits of bank statements:
Expense management:
Keeping track of your bank statements helps you identify unnecessary expenses and adjust your budget to save more effectively.
Detect strange transactions:
When checking your statement, you can detect invalid or unknown transactions, helping you promptly request the bank to handle them.
Proof of income:
Bank statements are important proof of income when you need to apply for a loan, tax refund or financial verification.
Minimize unnecessary fees:
Statements help you spot unnecessary charges and help you ask your bank to reduce or waive service fees.
The chart illustrates the statement periods and account balance fluctuations over the months.
How to make accurate and complete bank statements?
To ensure accurate and complete bank statements, you can follow these steps:
Check transaction:
Please check each transaction listed on your statement to make sure they are all correct.
Store receipts and documents:
When making a transaction, always keep your receipt or invoice to compare with your bank statement.
Using electronic banking services:
Electronic banking services make it easy to keep track of your transactions and bank statements, saving you time and effort.
Payment on time:
Make sure to pay your debts or fees on time to avoid late fees and interest.
In short, statement is an important tool that not only helps you track transactions but is also an important document in managing personal and business finances. Understanding concepts such as bank statement, statement date and statement payment term will help you manage your finances effectively and avoid unnecessary fees.
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