What is statement account

Banking

What is statement of account in Nigerian bank?

What is statement of account – Today I’ll teach you one of the basics of traditional banking, you at one point or the other may have heard about the term “Statement of account,” in financial transactions.

In this piece you’ll get to understand what it’s, who needs it and why. Going forward you can apply its usefulness in your financial dealings from time to time.

What is statement of account?

Let me start by stating that every transaction being effected on your bank account has a trail, a trail in this sense refers to sequence which such transactions are being consummated.

In the transaction trail, the date, time, and mode of transaction are being captured. The mode of transaction in this case refers to may be e-channel, ATM, withdrawal across the counter, mobile or internet transfers.

The transaction will have to appear in respect for the purpose. There are transaction references to back up the activities too, these activities may either occur in a current or savings account.

Through these transaction references individual transaction can be traced with unique identity.

To set the record straight, a statement of account can exist between a bank and its customer as well as a Small business and its customers.

That said, let’s answer the question “What is statement of account?”

A statement of account is a document that shows all transactions that took place between the bank and its customer as well as a small business and its customers for a given period of time.

If a customer/small business wants to track credit or funds received from customers, the bank statement will give a fair view of this detail in accordance with respect to date, time, customer’s name, amount paid, etc.

In the other hand, statement of account also shows every debit entry that has been passed in the same account.

Summarily, a small business/customer will require a statement of account to either verify and reconcile financial dealings that occur in the account over a period of time.

Benefits of statement of account

There are no limits to how much the statement of account would either benefit a customer as well as a small business.

  • As a small business, a statement of account in due time provides your customers with a recap of the products and services that were billed on them.
  • Account statement helps a small business to confirm payments as lodged by customers
  • Statement of account is usually a joiner to individual invoices sent to the customer for each purchase made.
  • Account statement serves as a tool to remind customers to lodge in payments, it helps the business to send payment reminder in advance.
  • Summarily, when a business faces inconsistency in records, a summary report of the statement enables the business owner to check if the customer has paid his debts.
  • Transactions that were incidentally run twice are being captured.

Items contained in a statement of account

  • Statement period – This is the date under review
  • Branch name – The bank branch
  • Internal reference
  • Account type – Either savings or current
  • Currency – Nigerian naira
  • Opening balance
  • Closing balance, etc.

Statement of account sample

Kindly find and study the below sample of an account statement.

Sample of statement of account

What is invoice?

An invoice is a document given to a buyer/customer by a business owner/seller to collect payment. This include the cost of product purchased or services rendered.

Invoice should contain names of the seller and client, description and price of goods or services.

Conclusion

A statement of account provides real time details on activities that took place in your bank account, these include inflow, outgoing fund as well as help you to reconcile possible differences that may have occurred on the cause of carrying out your transactions.

4 comments on “What is statement of account in Nigerian bank?

Raphael Orji

Interbank tramnsfer from GTB to Ecobank how much doeit cost?

Raphael Orji

How much does interbank transfer cost From GTB to Ecobank?

[…] Utility bill (keep a shot of any of your NEPA bill, waste management receipts, bank statement, etc) […]

[…] bank statement of account is required to prove your ability to pay back the […]

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