What is a statement of account?
It is a document that is used to outline the transactions an account holder has conducted from his account. This statement is issued by the financial institution in which a person has his personal account. In many cases, the statement of account is issued by the seller when he wants to document the transaction between him and his customers.
What is the purpose of using the statement of account?
There are many reasons why people use the statement of account. Some of the common reasons are
- For calculating the outstanding balance in the account
- For letting the customers know about the transactions that he has conducted
- In order to avoid any type of dispute that may arise between the seller and the buyer
What should be included in the statement?
In order to create a statement of account, there are some official requirements a seller or a financial institute is required to meet. When a seller wants to have an accurate picture of the transactions conducted by the customer, he is required to include the following details in the statement of account
1.Total balance of the customer
It is important to tell the customer how much balance he has left in his account after conducting a series of transactions. With this information, a customer can get a clear picture of where and how he is spending his money.
2. Detail of transactions
Since the purpose of creating the statement of account is to document the transactions mainly, it should provide the details about all the transactions that a customer carries out in a particular period. There is a date range of every statement of account. In the specified range of dates, all the payments made by the customer, refunds to the account of customer and all other details are added.
3. Range of date
Everyone needs an account statement of a particular period. The financial institute usually issues the statement of account considering which period is necessary for the customer. The account statement can be issued for a month, a quarter, a year or more.
4. Contact details
The contact details of the seller, as well as the customer, should be included in the statement of account. These details include the name, phone number, residential address and much more.
When to use the statement of account?
The statement of account is usually needed by the people when they have to show how financially stable they are. Many institutes ask their clients to show them their statement of account when their clients request them to let them purchase products or services from those institutes on credit.
Anyone who needs the statement of account will have to contact the relevant institution for this purpose. He will have to tell the date range of the statement of account and then this statement is issued to that person. It should be noted here that this statement is issued to the account holder only.
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