What is the purpose of a bank statement?

The purpose of a bank statement is to summarize all transactions in an account for a specified period. It provides account holders with a detailed record of their deposits, withdrawals, electronic payments, and any fees charged, indicating how the balance has changed over the timeframe covered. This summary helps customers track their financial activities, monitor their spending habits, and reconcile their personal records with the bank’s records.

While a bank statement might contain some information relevant to profits and losses, particularly for businesses monitoring income and expenses through their bank accounts, it is primarily not intended to present a comprehensive view of profit and loss. Similarly, it does not serve as a direct report on asset values or specifically assess loan eligibility, as these functions involve different types of financial documents and analyses. The essential role of a bank statement is its ability to provide clarity and transparency concerning account transactions over time.