Monthly statements are personalized financial records that inform the recipient of their account status, with different types for different accounts. They show current balances, charges, deposits, and payments, and are used for loans, bills, and small business billing. Electronic statements and payments are becoming more popular.
A monthly statement is a general term for a personalized financial record that regularly informs the recipient of the status of their account. It is usually mailed to the recipient around the same day each month. There are as many different types of these statements as there are types of accounts.
For a checking account, a monthly statement will show the current balance in the account as of the statement date. The customer can verify that all charges against the account are accurate and that all deposits or credits that have occurred since the previous month’s statement have been applied. If the account is overdrawn, this will also appear on the statement. A savings account statement also shows the current accrued balance and any deposits or interest dividends applied on the current month’s activity. If money was withdrawn from the savings account in the previous 28-31 days, this should also be shown on the account statement.
While a bank statement lists what money has accumulated on a particular account, a monthly credit card statement lists what debt has accumulated on a particular credit card. In the case of a current balance, the monthly statement allows the customer to see the balance from the previous month and any credits applied since then. The charges are also listed, along with the current payment and due date.
Virtually any type of loan agreement incorporates a monthly statement. Mortgage payments, car payments, and other important items not paid in full at the time of purchase will use the statement to make debt payment easier. Car insurance, medical bills, and other goods and services also use this system.
Some small businesses use an informal monthly statement as a billing tool. The groundskeeper may leave a statement in your mailbox that is nothing more than a handwritten receipt for services rendered, with the balance due. For those small businesses that provide a service or product and require billing clients, bookkeeping services can be hired to handle billing. In this case, the third party prepares and mails monthly statements to customers, and may also collect on delinquent accounts depending on the agreement.
With the advent of the Internet, some people now opt for electronic monthly statements and electronic payments. This is equivalent to receiving and paying online via electronic bank transfer or credit card. Due to potential security risks, others prefer the traditional method of postal mail.
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