Current Account Statements: How to Read and Understand Your Bank Statement

Disclaimer: This blog is generic in nature & should be used for information purposes only. Ujjivan SFB does not take any responsibility for the accuracy of the information provided herein.

July 05, 2025

how-to-check-and-read-current-account-statements

Current account statements are essential financial documents that provide a detailed record of your business transactions. Understanding how to read these statements is crucial for effective financial management and accurate bookkeeping.

 

a) Anatomy of a Current Account Statement

A typical current account statement contains several key elements:

1. Account information

2. Statement period

3. Opening and closing balances

4. Transaction details

5. Summary of fees and charges

 

b) Decoding Transaction Details

The transaction section of your statement includes:

1. Date of each transaction

2. Description or narration of the transaction

3. Debit and credit amounts

4. Running balance after each transaction

 

c) Understanding Account Balance Types

Your statement may show different types of balances:

1. Available balance: Funds you can immediately access

2. Ledger balance: Total balance including pending transactions

3. Overdraft limit (if applicable)

 

d) Reconciling Your Statement

To ensure accuracy:

1. Compare your statement with your own financial records.

2. Check for any discrepancies or unfamiliar transactions.

3. Verify that all deposits and withdrawals are correctly recorded.

 

e) Analysing Your Financial Activity

Use your statement to gain insights into your business finances:

1. Track cash flow patterns.

2. Identify major income sources and expenses.

3. Monitor recurring charges and subscriptions.

 

f) Utilising Statement Information for Business Planning

Your account statement can help you:

1. Make informed budgeting decisions

2. Forecast future cash flow

3. Identify areas for cost reduction or revenue improvement

 

g) Digital Statement Features

Many banks now offer digital statements with additional features:

1. Searchable transactions

2. Categorized expenses

3. Downloadable data for accounting software integration

Final Thoughts

Mastering the art of reading your current account statement is essential for maintaining financial health and making informed business decisions. Regularly reviewing and analyzing your statements can provide valuable insights into your business's financial performance. 

 

For businesses seeking user-friendly current account services with clear, comprehensive statements, Ujjivan Small Finance Bank offers digital banking solutions that provide easy-to-understand account statements and robust financial tracking tools to support your business growth.

 

Disclaimer:

The contents herein are only for informational purposes and generic in nature. The content does not amount to an offer, invitation or solicitation of any kind to buy or sell, and are not intended to create any legal rights or obligations. This information is subject to updation, completion, amendment and verification without notice. The contents herein are also subject to other product-specific terms and conditions, as well as any applicable third-party terms and conditions, for which Ujjivan Small Finance Bank assumes no responsibility or liability.

 

Nothing contained herein is intended to constitute financial, investment, legal, tax, or any other professional advice or opinion. Please obtain professional advice before making investment or any other decisions. Any investment decisions that may be made by the you shall be at your own sole discretion, independent analysis and evaluation of the risks involved. The use of any information set out in this document is entirely at the user’s own risk.  Ujjivan Small Finance Bank Limited makes no representation or warranty, express or implied, as to the accuracy and completeness for any information herein. The Bank disclaims any and all liability for any loss or damage (direct, indirect, consequential, or otherwise) incurred by you due to use of or due to investment, product application decisions made by you on the basis of the contents herein. While the information is prepared in good faith from sources deemed reliable (including public sources), the Bank disclaims any liability with respect to accuracy of information or any error or omission or any loss or damage incurred by anyone in reliance on the contents herein, in any manner whatsoever.

 

To know more about Ujjivan Small Finance Bank Products Visit:"https://www.ujjivansfb.in"

 

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FAQs

1. How often should I review my current account statement?

It's recommended to review your statement at least monthly. However, for businesses with high transaction volumes, weekly or even daily reviews can be beneficial for catching discrepancies early.

2. What should I do if I find an error on my current account statement?

Contact your bank immediately if you notice any discrepancies. Most banks have a specific timeframe for reporting errors, usually within 30-60 days of the statement date.

3. Can I get my current account statement in a specific format for my accounting software?

Many banks offer statements in various formats like CSV or OFX, which are compatible with accounting software. Check with your bank for available options and any associated fees.

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