A bank statement template is a professional statement which can be defined as a legal report owned and released by authorized bank’s financial officer or authority. It is issued on the specific request made by the owner of account usually called as “Account Holder”. Without the request, a bank is supposed to issue this statement periodically as per given manual, under governance of federal authorities. These terms are vary from region to region, however, a six monthly and yearly statement is in practice. Based on country’s financial emergency or state ordinance this terms can extended from monthly to quarterly. A computer generated statement does not required authorization however, if this statement required, then the official staff of bank would sign it with stamp.
Purpose of Bank Statement
The purpose of preparing bank statement is simply informing clients or account holders about the transactions which took place during the period of statement. These transactions reflect positive and negative impact on balance. A positive balance means account holder has still cash which he/she can withdraw. However, a negative balance means, account holder will need to repay the balance. This facility is called overdraft in account or credit limit in liability asset. A bank statement also clearly reflects opening balance as well as closing balance. Remember that, not every account holder is entitled with overdraft or credit line facility. There are set of rules which need to follow in order to authorized someone for such facility.
Importance of Bank Statement
In simple words, we can say that it is an official way to provide the total record of your checkbook’s transactions. Therefore if you agreed with the bank statement than you can keep these statements with you as a record of your account/s, otherwise you can contact with bank for further information or rectifications. Once all entries rectified, then statement is re-issued and will considered legal. The rectified statement used to correct the bank statement is called Bank Reconciliation Statement.
Usage of Bank Statement
As we know and it was mentioned above that bank statements are record of transactions made by both the account holder and bank, but somehow these statements may also noted as a definite or clear expression of balance and activities related to the credits within the account. It is a detailed summary of financial transactions which entirely compiled by a banking system to show the account holder with lists of deposits along with all the common but crucial stuff, such as; withdrawals, check lists, paid checks, bounced cheque, interest rate on transactions, earned interest, service charges, details for penalties and even more. Nonetheless a bank statement will also serve as an up to date report of existing account balance along with incurred transactions values as well.
Different Categories of Bank Statement
Bank statements can be defined into two main categories; one for basic account holders which mostly having a saving account or personal current account and these account holders may receive such statements less then often on half yearly basis or yearly basis. Whereas here’s another example of bank statement which record for corporate accounts, such accounts run by people for business purposes, although these account holders may receive a monthly bank statement or even weekly basis.
Details of Bank Statement
The basic use of bank statement can be define as an example here, for instance; bank statement may help the account holders to prevent themselves from overdrafts. For this purpose, they can keep an eye on transitions and closing balance. This statement assist them to catch the bank errors as and when statement is issued. These are fairly simple components and can be useful for summarizing the details of all the transactions, account the credit details. It is the duty of bank to provide complete and accurate statement in accordance with current value of account, showing accurate and true information of every new activity, highlight deposits, withdrawals during specific dates.
