What is Purpose of a Bank Statement?

1. Record expenses 2. Know account activity 3. Reconcile accounts 4. Ensuring expenses 5. Provide information 6. Proving the transaction truth

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What is The Purpose of a Bank Statement?

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Bank Statement Banking

What is the purpose of a bank statement or bank statement is known with certainty in the banking world. Bank statements at each bank institution are given to bank account users or customers. Of course, this current account is given regularly and usually once every 3 months.

Bank statements or bank statements can be useful instruments. Especially to manage your finances. Because this document contains various information precisely about the spending and income transactions that occur. In other words, a checking account shows your various transactions over some time.

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Purpose of a Bank Statement

What is The Purpose of a Bank Statement

This bank statement itself has a special purpose that is useful for the continuity of bank institutions. In addition, this goal is also related to customer trust in bank institutions. Here are some of the purposes of the bank statement or also known as a bank statement.

1. Record expenses

One of the purposes of a bank statement or bank statement is to record expenses that occur. The existence of this bank statement document can provide special records. This record relates to all expenses you have made. Even more so if you’ve ever used a check and debit card. Or it could be when you use a credit card as the chosen payment method.

So this document will show you where the money you have spent so far. Of course, this record of your expenses will be a reference for you in making a budget. Because all types of expenses you can know exactly.

2. Know account activity

In addition to knowing all expenses that have occurred, the bank statement is also carried out for other purposes. The purpose, in this case, is to provide information regarding your account activity. So you can find out how much money you have in a bank account.

Furthermore, this amount of money can be recorded from the beginning to the end of the accounting period. You can also know how much money you save. Not only that but you also know how much money you have spent. So the activity of the bank account can be known well and completely.

3. Reconcile accounts

The existence of a bank statement can also help you to reconcile your account. Because bank statements do provide the right means to reconcile the financial statements of bank account users. This process occurs by comparing the nominal amount of your bank account in your financial statements.

Transactions in these financial statements are compared with reports from banks. So you can better ensure the match of recording transactions that occur. Reconciliation of current accounts becomes important in banking activities. By reconciling the bank, the expenditure becomes clear.

This bank reconciliation can reveal unexpected costs that had occurred. Or it can also be found invalid expenses in your bank account. To reconcile this bank, bank documents are also needed.

4. Ensuring expenses

Spending becomes something that must have happened in your transaction. Including mutational activity that cannot be avoided in the banking world. Now the mutation report can be known with certainty through the existence of a bank statement.

For example, mutations in savings accounts and checking accounts. Or it could be on a credit card account that may be combined in one bank statement. This expense may be invalid if one of your accounts is compromised by an irresponsible person. This can be realized for example when you see a bill that looks invalid. Or a record of expenses that felt never happened.

Furthermore, the results of bank reconciliation can appear as the difference between your account and the notes in the bank. Therefore, a bank statement is needed to minimize the risk.

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5. Provide information

What is the purpose of a bank statement also includes providing precise information about the balance at the beginning of the month. In addition, information can also be given about debit mutations and credit mutations. All transaction activities also contain the date and hours of the transaction. Including all information that lists the process of transferring funds between accounts by customers.

The information you will also get is related to all kinds of costs. For example, in the form of administrative fees and also interest earned in each month. So what is meant by information, in this case, relates to all transactions that occur. All transactions can also be known clearly and also in detail.

6. Proving the transaction truth

The last thing that is also the purpose of the bank statement is generally related to legal matters. In other words, the bank statement documents you have can later be special evidence to prove the transaction truth.

Indeed, mistakes can occur in a trance. For example, the money transferred does not reach the recipient. But in this case, the amount of your balance has been reduced. To prove the occurrence of the transaction, you can use bank statement documents.

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What is the purpose of the bank statement listed above can certainly be achieved. The existence of a bank statement given by each institution can certainly help bank institutions. Especially in doing the various things discussed above. Of course, this must be done appropriately, for example, every part of the bank statement must not be missed.