Accounting – 3.3 Bank reconciliation | e-Consult

A bank statement typically contains the following information:

• Date of the transaction: Indicates when the transaction occurred.
• Description of the transaction: Provides details about the nature of the transaction (e.g., customer payment, supplier payment, bank charges).
• Amount of the transaction: Shows the monetary value of the transaction.
• Previous balance: The balance at the start of the period.
• Current balance: The balance at the end of the period.
• Bank charges: Details any fees charged by the bank.

This information is useful to a business for:

• Tracking cash flow: Helps understand the movement of money in and out of the business.
• Reconciling accounts: Provides data for bank reconciliation.
• Identifying spending patterns: Helps analyze where money is being spent.
• Supporting accounting records: Provides evidence of transactions for the business's accounting records.