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Also known as an account statement, a statement of account is a record of the transactions that have occurred on a customer’s account during a specified period of time. The line items on the account will record information about purchases made by the customer, any payments rendered by the customer, and any other miscellaneous adjustments that have been made to the current balance due on the account. Statements of this type are normally issued for each billing period specified in the contract that established the customer account, and note balances on account at the beginning and ending dates of the period. Customers can also sometimes request account statements that cover a longer period of time than just the most current billing period.
The statement of account is associated with many different types of accounts. A statement for a checking account at a bank is normally issued on a monthly basis, allowing the bank customer to see which deposits have been posted to the account, as well as which checks have cleared during the period under consideration. The bank account statement will also include details about any other types of debits or credits that have had an impact on the account balance during the month, such as purchases made using a debit card, funds transferred into the checking account from a savings account, or even accrual of any interest, if the checking account carries that particular feature.
Most vendors will also issue a statement of account to each customer on a regular basis, usually monthly. Like the checking account, vendor statements will show the balance owed at the beginning of the statement period, any transactions that took place during the period, and the total balance on the account as of the closing date of the statement. If the vendor has provided the customer with a line of credit, the statement will also show the minimum payment due along with the total balance on account.
Credit card statements are another common example of the statement of account. Here, the statement detail will include information such as the purchases made by the cardholder, including information that identifies where the charges were made. The detail also registers any payments made by the customer, or any adjustments made due to the removal of charges that were disallowed on the credit line. All fees assessed by the card issuer, including late fees, over-limit fees, and finance charges on the outstanding balance, are also noted in the statement detail. With most forms of credit cards, the format also includes the minimum amount that must be paid before the next closing date in order to avoid late fees or other penalties.
In all its forms, a statement of account helps the account holder to manage the account more efficiently. Various statements are also important when it comes to managing all financial resources under the control of the account holder, since they provide important documentation of all types of financial transactions associated with the account in question. In general, consumers are encouraged to read the detail on each statement carefully, to make sure all line items on the document are accurate, and that the balance owed does match with the client’s other financial records.
Regardless of the type of accounts you have, it is important to keep your statements of accounts in a neat file in case you need them for future reference. You can use your statements to correct mistakes, question charges, or see how much you have paid towards a balance due. Keeping track of your statements of accounts will also help you manage your money as you pay off your bills.
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