What is a Bank Statement

Bank statements are the official document authorized and released by a bank to its concern customer. This is an authorized proof of the transactions and money inflow-outflow on a particular account of a bank. This comprehensive and pertinent representation can depict every kind of details related to a particular account for a specific time-frame to its concern holder, irrespective of the nature or volume.

This kind of statement is generally released by a bank on request of its account holder for a particular period as a legal authorization. Even, this kind of a statement also helps in keeping record of the credit card transactions. The purpose of a bank statement might be varied but some of the significant factors remain invariably the same while documenting it. They are follows:

  • A bank statement is an essential document for legally authorizing a person concern for obtaining a visa, admission in an education institute, participating in an examination etc. Thus, this kind of document serves as a piece of authorization note; therefore, it must have official consent from the bank in order to make it more authentic.
  • Bank statements, which generally deal with recitation of transactions, must highlight the cash inflow and outflow in an account clearly so that the person concern could have a lucid idea of the entire transaction details.
  • The narration of the document must essentially specify the time period for which the bank statement is being released. This is important as it helps to maintain the record for both the bank and customers.

The importance of a bank statement is imperative in a financial management. This authentic document, if prepared with transparency, helps in keeping the track of the transactions related to an individual or company. Moreover, this valuable document helps a person concern to gain detailed overview of a particular bank account.

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