An account statement is an important financial document necessary for the accounting activities of the company. However, individuals may also need to get such a document. Almost every person contacts with banks one way or another – receives a debit and credit card, draws up a mortgage, opens a deposit or takes a cash loan. An account is opened for any of these products.
In order for the client to be informed about the movement of money, he or she can order a statement from the bank. The document has legal force – it confirms the presence or absence of debt, the deadlines for fulfilling obligations under the contract. An account statement can be provided when applying for a visa abroad, for litigation or to other organizations.
Why an individual may need a bank statement?
An account statement is sometimes needed in a number of life situations:
- When closing a loan agreement, it is recommended to get a bank statement with zero balance. This statement confirms the absence of debt, as well as the fact that the bank has no complaints against the client. In case of questions regarding the debt, a statement can be used in court as a defense;
- If there is debt to the bank, a statement is also required. It shows all payments made by the borrower, as well as deducted interest and penalties. When considering a credit case in court, the statement will be taken into account;
- To confirm transactions in cases where the recipient did not see the money from the payer. A statement will help confirm that the money was debited from the account, and the date of this operation;
- Embassies of various countries sometimes require a statement on the personal account of a citizen to apply for a visa to their country. As a rule, each embassy has its own recommended balance, which should be on the client’s account. A statement confirms the solvency of a person and availability of funds. Statements issued by various banks may differ as the standard form for it does not exist.
Using any banking product, whether it is a loan, deposit or debit card, it is important to control the cash flow in the account. This is especially true for legal entities and entrepreneurs engaged in commercial activities. An statement from the bank is an official financial document that confirms the amount of crediting and debiting money. Based on such a document, you can confirm the income and expenses of the company, as well as the amount of tax for any form of taxation.
Bank statement is a document that provides information about the state of the account and cash flow funds on it, issued by the organization’s bank.
Banks in the United States are only required to send a current account statement if one transaction has been completed from this account within a month. Bank customers also have the opportunity to receive electronic statements (eStatements). If the virtual order is certified by a qualified electronic signature, it is not required to specifically print such a document on paper or print out bank statements. An electronic version of the document, certified according to all the rules, is equivalent to the paper version.
The benefits of eStatements
The question remains open to this day – do I need to print out statements if the bank provides them electronically?
No law directly prohibits organizations from storing only electronic versions of statements.
Many trends speak in favor of electronic statements:
- the growing popularity of remote banks that provide documents exclusively in electronic form;
- large enterprises with several current accounts and daily non-cash transactions will be forced to spend huge bales of paper on printing statements and documents attached to them, not every company will be able to store such voluminous archives.
Organization of the entire business is gradually moving in favor of full computerization. Still, it is worth considering that documents stored on the Internet may disappear (for example, during the reorganization of a client-bank or due to problems on the server), therefore it is recommended that they be stored at least periodically on other electronic media.