Managing your money and tracking your money is essential to maintaining the budget and getting an orderly and safe quality of life and therefore it may be necessary to periodically monitor the company's finances and payment systems to ensure healthy cash flow, A quick service for its payments and commitments, here lies the task of disclosure, which can help you manage the organization's finances better In this article we will clarify what the account statement is and highlight its importance, read on.
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What is the account statement?
The account statement is a periodic summary of the account activity with the start and expiration date, the most common is to verify the account statements, which typically provide monthly statements of account, and brokerage account statements, which are submitted monthly or quarterly. Monthly credit card bills are also account statements.
The account statement is issued by the seller to the customer, where it lists all financial transactions between the two companies within a specified period of time (usually, monthly), the statement may reflect a zero balance, if not, it serves as a reminder to the customer that the money is due.
Understanding Your Account Statements
The account statement refers to almost any official account summary, wherever the account is held, for example, account statements can be created for almost any type of account representing current transactions where money is exchanged frequently, this can include online payment accounts such as PayPal, credit card accounts, brokerage accounts, and savings accounts.
Usually, utility companies, as well as telephone and TV subscription providers, are established. Account statement for its customers detailing their usage and any increases during the payment cycle and usually also lists the debts paid, the money received or the credits received by the account holder and the fees associated with maintaining the account, For example, certain types of savings accounts may incur regular maintenance fees unless a certain minimum balance is maintained in the account. Cable TV subscriptions may also include state taxes and other surcharges included in the provision of regular service.
Why is the account statement important?
The account statement is important when verifying the consistency of records in the client's account which the company can use to verify that the customer has already paid all the amounts owed to the company, If there are any lost payments, the business owner can send a payment reminder to the customer, In case of double fees or double payments taken in the system the employer can review and verify all payments to ensure the accuracy of registered transactions.
Account statements can also serve several different purposes, by listing each transaction between the company and the customer, the account statement can be used for:
- Account balance due
- Remind the customer to settle his account balance
- Avoid disputes with customers
Is the account statement invoiced?
There are clear differences between the statement of account and the invoice. The following are the most important of these differences:
Account Statement:
The account statement is not an invoice, it is a seller's report sent to the customer, usually in PDF format delivered via email.
The statement of account records the financial transactions between the two companies within a specified period of time, usually a period of one month, the statement lists all the amounts and payments of the invoice, also includes refunds from the seller as well, and the statement of account may show an amount that is still due by the customer.
Invoice:
The invoice is a different document, as it is also issued by the seller, but it is an invoice for only one transaction, where each invoice is included for the period of time that is documented, regardless of whether it is paid or not, as an item in the statement of account, and in this way, both the seller and the customer can find out whether the payment is missing or whether the customer's account is updated.
Account Statement Form
The account statement is used as a collection tool to remind customers of the amounts owed to the source, the statement is usually a printed document, but it can also be sent electronically, the account statement form usually includes the following information:
- Invoice number, date and total amount of each invoice issued to the customer within the time period.
- Credit number, credit date and total amount of each miscellaneous credit issued to the customer during the time period.
- The date of payment and the total amount of each payment received by the seller within the time period.
- Net balance remaining for all transactions included. This is the total amount owed to the seller.
- The payment coupon at the bottom of the page can be ripped up and used as a transfer to the seller.
Red flags on account statements
Anomalies in the account statement may be a sign that the account has been compromised credit card, stolen debits or identity thieves who have access to account information, Account holders may be able to object to these inappropriate charges and file a claim that they did not make the purchase themselves However, checking your account statements as soon as they are received remains a good financial habit that can capture these red flags before they turn into a financial disaster.
Benefits of Electronic Statements
The Internet provides many financial institutions with convenience and security in their financial transactions, through online banking services and electronic account statements for their members. The e-statement offers a range of benefits compared to the traditional paper account disclosure, perhaps the most prominent of which are:
- All information used through the e-statement is protected and cannot be seen by anyone except the account holder.
- The e-statement provides time for the company and the customer, as it can be easily issued, as it can be obtained on any day of the week, without the need to wait for it to be obtained from the mail.
- The use of e-statement contributes to reducing chaos, by reducing the use of paper statements, and is therefore environmentally friendly.
- You can access the statement directly through online banking, which means you don't have to search paper files just to review your payment or deposit history.
Conclusion:
Account disclosure is a necessary statement in financial transactions, where it provides important information, Including the seller's fees and the list of services provided, The money owed by the client, and the deposits provided to the account, thus the account statement acts as a useful tool for vendors to remind customers of outstanding payments And this is important because timely payments by customers can improve the seller's cash flow, It allows the company to spend money on the resources it needs to sustain the business.
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References
1. < < Where can I request an account statement? > >, ubs
2. < < What's the difference between a bank statement and an account statement? > >, help
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