A bank statement is a document showing the summary of inflow and outflow of cash from your account. It contains information such as your name, account number, details of how you received money and how you made withdrawals for a particular period of time including charges that were deducted from your account by your bank. This means that you can request for your bank statement for a specific period e.g. from january to June.
Companies monitor their account through bank statement to know if any fraudulent activity has been carried out in the company and also to know the financial worth of their business in case they have more investment to make.
Banks have made it so easy that if you cannot go to the bank for your statement of account, you can get it on your phone whether through mobile app or ussd code, but big companies cannot do this because of the numerous transactions performed in the company which reflects on their account.This article will show you things you can do with your bank statement.
On your bank statement, you will find your name, your account number, your address, date, the money you sent to people and their account names, how you made withdrawals or transfer be it through ATM machines, pos, mobile app or ussd codes, how money entered your account be by cash deposit, transfer or through pos .
The main reason why companies collect statements of account from their banks on monthly basis is to check for any error or fraud in their organization. Charges are usually deducted from the account holder’s account for the statement of account in the case of printed ones.
What you can do with your Bank Statement
There are many things you can do as an individual or a firm with your statement of account. Such things includes:
- Knowing your financial position i.e. you can use it to know how much you worth at a particular period. In terms of business, your statement of account will tell you if you are making profit or if you are loosing money.
- You can also use it to know how much you make and spend. Your account statement will show you how much you have spent so fat and how.much you have made within the period.
- Banks give interest on the money saved in your account though the interest may not be that much but this will reflect in the bank statement
- To determine your savings. It helps you to also control your spendings and manage your fund in such a way that your account balance for that period will be shown in the statement of account, so if you are spending way more than your budget, you can control yourself.
- Keep track of your account balance may be weekly, monthly or quarterly as there may be some errors on bank balance sometimes such as wrong deposit in our accounts and many more. Once this happens, you can call the attention of your bank customer care and it will be corrected.
- To check for fraud, errors or any discrepancies in case of companies. Companies use statement of accounts to check for any fraud in the company and if any one is detected, the account officer will be responsible for any punishment taken up by the company.
- When applying for loans, you may likely need your statement of account to show that you have the ability of repaying back the loan as at when due.Also, the institution that wants to give out loan to you would want to know if you are financially capable of the amount you are requesting for or if it should be reduced so that it will not be a problem when you want to pay back.
- It is widely known that when you want to travel abroad, you would need your statement of account as a proof of fund whether you are going through school or job.