Banks constitute a very important part of the financial system in any country. They play a major role in the movement of cash and funds and across the economy they are instrumental in balancing the mobilization of funds, control credit rates and rates for deposits. Banks provide various services.
They have customized solutions for corporations, as well as defined solutions for retail customers. Through various ways like counters, kiosks and websites, the banks across the world are rendering services to their customers. In this world of cutthroat competition, different banks have different solutions to be offered to their customers.
The bank statement is an important document to manage your finances. Every month your bank should send you a statement. The statement can be either a hard copy delivered to your address, or they will use the email address that was given to the bank while you were opening the account. It is always better to choose email as you will always have a soft copy for your records, and that can also be saved as a hard copy if you print it out.
This statement typically looks like a multiple column statement. It will have a period mentioned with the summary of the balances, deposits and withdrawals. In financial terms, they are typically the debit and credit which you would have gone through over a period of time.
The statement would have legends which will also help a first timer to understand the statement. In case you face any challenges you can contact the customer care set up by the bank or your financial advisor.
You are always advised to keep these statements handy as these will help you to relate to all the debits and credits that you would have incurred over a period of time. There can be discrepancies any time between your bank statement and cash book and the statement that you have maintained. These discrepancies are to be kept noted to avoid any issues that may arise in the future.
The balancing act of debits and credits is very important, too. The bank will follow the normal debit and credit process to balance the bank statement. You, as a customer, or the business owner of any firm, should keep the following basic logic in mind.
Check for the balance according to your bank statement on a certain date. Once you have ascertained the same, you have to make certain adjustments. All the deposits which are in transit are to be added. These are the deposits which have already been received and records have that been updated.
The bank is yet to update the records. After you get the sum, you will deduct all due checks. These are the outstanding checks which you have recorded in your financial statements. The bank is yet to clear the same.
From the above ascertained amount, you will accordingly deduct or add up the errors which the bank might have committed.
The above processes are very much technical which are generally performed at corporate levels or by an accountant or bookkeeper. You can also appoint a financial consultant to help you in this regard. Personall, you should keep a check whenever you receive the statement on your email. You will scan through all the pages to detect any anomalies. When found, they should be immediately reported with the bank and followed up till closure.