What is a Bank Statement?
A Bank Statement is a financial document that contains a summary of financial transactions that occurred over a period of time. In general, it comes from a bank and financial institutions and provides an individual the information regarding the funds he or she has in his or her account. By providing a financial summary, it lets a person become aware of his or her financial status, allowing him or her to plan expenses accordingly and effectively.
The primary purpose of a bank statement is to provide an account holder with his or her bank information. It contains specific transactions and their respective amounts within a given period. While it is a simple financial document that outlines financial transactions, it comes with a lot of benefits. An individual may use a bank statement to apply for loans, to monitor all financial transactions on a regular basis — daily, weekly, or monthly, to trace transaction information to check if there are discrepancies in the account, to use as proof for legal claims, and as a guide when making financial decisions.
A bank is obligated to provide a bank statement upon the request of an account holder. In general, an account holder should submit an application, providing all the necessary details for the bank to be able to pull up the account. A copy is typically free of charge, but if a person needs multiple copies or printouts, a bank may charge a small fee. A bank or a financial institution sends bank statements through the mail, usually in the form of written documents. An account holder may also receive electronic bank statements via electronic mail.
How to Make a Bank Statement?
Unfortunately, an account holder cannot make his or her own bank statement and pass it off as an official financial document. Nevertheless, one can use a personal bank statement to use to compare with the official statement issued by a bank or financial institution. Doing so can help an account holder watch out for any errors and discrepancies in the record that the bank possesses. Typically, any error should be reported within 60 days after the transaction. To reconcile discrepancies, an account holder can show his or her personal record with the bank, highlighting the errors. Just remember that it is illegal to use an unofficial bank statement as an official document; it will result in legal problems and penalties.
In general, a bank statement shows all financial activities in the account; some banks and financial institutions generate the document monthly. It includes deposits, withdrawals, service charges, earned interests, and penalties if there are any. Moreover, it provides the starting balance of the account, completed transactions, and details of the account holder. As a financial summary document, it shows a summary of all the transactions that have happened within a specific period of time.
Using PDFRun’s Bank Statement, one can create your personal bank statement to track his or her finances. Follow the guide below to use the bank statement template accurately.
To start, provide the name and address of the account holder. Also, provide the period of the account statement.
For the Account Summary, provide the opening balance, total deposits, total withdrawals, and closing balance for the specific period.
A bank statement contains a table where specific financial transaction details should be supplied. For every transaction, the account holder should provide the date, description, deposits, withdrawals, and balance. Then, compute for the closing balance for the specific period.