Bank statements: Definition, functions, and how to print one

What is a bank statement?

A bank statement is a document that lists the financial transactions of a savings or current account over a certain period of time. It is an official document issued by the bank to account holders - private individuals or businesses.

An account statement usually contains information about deposits, withdrawals and the closing balance during the specified period. Account holders or third parties, such as auditors or potential creditors, use account statements to verify the account's cash inflows and outflows.

To obtain an account statement, you can have it printed out by the issuing bank. You can print out the statements at a bank branch or retrieve them online. Online account statements are usually provided in PDF format, which can be saved and used as required.

Key information in bank statements for Business

Bank statements contain several important pieces of information about the account in question. For business accounts, it is important to ensure that business-related information is included.

Below you will find the most important information in a business account statement that you should pay attention to:

1. Bank details

The bank statement must contain details of the issuing bank, e.g. the name, logo, branch address and contact number. This ensures that the statement is an official document from the issuing bank.

In addition, including the address and contact details of the branch on the statement makes it easier for account holders to answer questions or resolve problems relating to their accounts.

2. Business information

For business savings or checking accounts, the statement contains information about the company or organization. This usually consists of the company name, tax identification number (TIN) and business address or contact details.

The inclusion of business information ensures that the statement accurately reflects the company's financial situation. It can be used to prepare financial reports and for tax returns.

3. Information on the account holder

In addition to the business information, bank statements usually include details of the account holder, such as full name, address, account number and account type. This information helps to identify the account holder and reduces the risk of errors when providing information.

4. Transaction period

Bank statements will indicate the transaction period required for documentation, e.g. one month, three months or six months. This helps to verify financial activity within the required time frame.

The statement shows the start and end date of the transaction period. For example, if you request a statement for the entire month of November 2024, the transaction period will be from November 1, 2024 to November 30, 2024.

5. Account summary

A bank statement contains a summary of the account, which usually includes the opening balance, closing balance, total deposits and total withdrawals within a given period. This summary provides a brief overview of the financial status of the account without the need to review transaction details.

6. Details of the transactions

In addition to the summary, the statement lists detailed account transactions over a specific time period. Transaction details include the transaction date, the amount debited, the amount credited, the final balance and the name of the sender or recipient.

The transaction details in a bank statement help to track a company's cash flow more comprehensively. They can also be used to reconcile the company's financial records with the bank's data shown on the bank statement.

Example of a bank statement

Bank statements contain important information about the account holder's savings or checking account. For a better understanding of bank statements, here is an image taken from the OnlinePajak website showing an example of a bank statement typically issued by banks.

The functions of bank statements for businesses

Bank statements are important financial documents that offer your company various benefits. Below are some of the key benefits of bank statements for businesses:

1. Record of financial transactions

Bank statements are an official and detailed record of all financial transactions relating to your business account, including income, expenses, transfers and administration fees. They help to ensure that all payments have been received from customers and allow you to reconcile banking transactions with internal accounting.

The data in bank statements can also serve as an important source of information for analyzing the financial performance of your business to ensure that all financial activity is accurately recorded and reconciled.

2. Serve as proof of business transactions

Bank statements serve as valid proof of financial transactions made with customers, suppliers or other third parties. For example, you can use bank statements to check whether payments to suppliers have been made on time or to check the receipt of funds from business partners or customers.

In cases involving dispute resolution or audits, bank statements serve as solid legal proof of completed transactions.

3. A prerequisite for loan applications

Bank statements are often a required document when applying for loans, especially for businesses. Banks or financial institutions evaluate your company’s bank statements as part of the criteria for assessing creditworthiness.

4. Supporting financial transparency

Bank statements provide complete transparency about your company's financial activities to various stakeholders, such as business owners, management, auditors or investors. Financial transparency is crucial for maintaining trust between the company's stakeholders.

5. Supporting financial control and planning

With the help of bank statements, you can regularly monitor your company’s financial situation and take timely action in the event of problems. By analyzing the data in the bank statements, such as spending patterns and income, you can create more accurate and realistic company budgets.

This analysis helps you to make effective business decisions, whether in relation to spending plans or business investments.

How to print a bank statement?

You can print your bank statements either offline or online. Below are the steps for both methods:

1. Printing account statements offline

The most common and easiest method is to print out account statements at your bank branch. Here’s how it works:

• Visit your bank branch and bring the original passbook and your ID card (such as KTP). For company accounts, you should also bring the account holder’s ID and other documents.
• Hand over the passbook and ID card to the bank employee. Sometimes you will also be asked to show your debit card to confirm account ownership.
• The bank officer will process your application and provide you with a printed physical copy of your account statement.
• There is usually a fee for printing statements at the branch, which varies from bank to bank and usually ranges from Rp2,500 to Rp10,000.

2. Printing account statements online

You can also print out your account statements online via digital banking services such as Internet banking or mobile banking. The document is provided in a digital format (PDF).

Steps:

• Log in to your internet banking account.
• Navigate to the “Account statement" or “e-account statement” menu.
• Select the period for the account statement you wish to retrieve and download the document in PDF format.

You can also print account statements via mobile banking apps, although this feature is currently only offered by a few mobile banking apps in Indonesia.

Differences between bank statements and other bank documents

Many people assume that bank statements are the same as other banking documents, such as passbooks and account mutations. However, each of these documents has different formats and functions. Find out more about the differences between bank statements, passbooks and account movement logs below.

Differences between bank statements and passbooks

Bank statements and passbooks are two important documents that provide information about your account movements. Here are the differences between the two documents:

• Bank statements are reports detailing all transactions, while passbooks are physical books provided to customers by banks to record account transactions.
• Bank statements can be in printed or digital form (PDF), while passbooks are only available in physical form.
• Bank statements offer more detailed transaction data than passbooks, including date and times of transactions, transaction descriptions and transaction account numbers.
• Bank statements are typically used to verify transactions, credit applications and financial audits. Passbooks, on the other hand, are used as a reference for simple account data and for manual balance tracking.

Differences between account statements and account mutations

Bank statements and account mutations are two types of reports that provide information about your account transactions. Although both record transactions, there are the following differences:

• Bank statements are official reports from the bank that record all financial transactions in your account over a period of time. account mutations, on the other hand, are transaction records that customers can access directly through banking services such as ATMs, internet banking and mobile banking.
• Bank statements are official bank documents that are available in both printed and digital form and have a standardized layout. Account mutations, on the other hand, are digital summaries of transactions that do not have an official format.
• Account mutations provide simpler information than bank statements, which usually contain the date, type and amount of the transaction.
• Bank statements are typically used to verify financial document, for loan applications, audits or tax reports. In contrast, account mutations are usually used to review daily transactions and check account balances on a regular basis.

Use Aspire Business Accounts for efficient financial management

Based on the above, you now understand the importance of bank statements for corporate financing. However, bank statements only record the financial transactions you have made. To maintain quality financial records, you also need to manage your finances effectively.

No need to worry—with an Aspire's Business Account, you can now manage your finances even more efficiently as you can manage your company's cash flow, receivables and payables in a single account.

In addition, Aspire Business Accounts supports your business growth with various benefits, including:

• Multi-currency features that allow you to add free accounts in GBP, USD and EUR.
• Unlimited free local transfers in SGD, USD, EUR and GBP.
• 10 free local interbank transfers per month.

What about minimum balance and initial deposits? Aspire does not require an initial deposit or minimum balance. You can enjoy an all-in-one financial platform with transparent fees and best-in-class features for your business.

In addition to business accounts, you can also take advantage of other Aspire services, such as Payment Gateway and Corporate Cards. Want to find out more? Contact our team today!