How to read a bank statement

The header: whose account and which period

• Account holder and address: check the name; joint accounts list both holders.
• Account identifiers: account number, plus a routing number (US), sort code (UK), transit number (Canada), BSB (Australia) or IBAN and BIC (Europe). Statements usually print the full number; converters should mask it.
• Statement period: from and to dates. Transactions dated outside this range are a red flag, unless the bank orders by posting date.
• Statement date or issue date, and often a page count (page 1 of 4). Missing pages are a common cause of statements that do not add up.

Opening and closing balances

The opening balance (also balance brought forward, previous balance or beginning balance) equals the closing balance of the previous statement. The closing balance (balance carried forward, ending balance, new balance) is where this statement stops. Between them sits the transaction table, and the identity that ties the statement together:

opening balance + total deposits − total withdrawals = closing balance

Many statements print total deposits and total withdrawals in a summary box. If the printed totals and the sum of the table disagree, either a row is missing from the table or a row has been counted in the wrong column.

The transaction columns

Some statements use one Amount column and mark direction with a sign, parentheses, or a DR/CR suffix (125.00 DR is a debit). Others use CR after a balance to indicate the account is in credit and DR to indicate an overdraft. Converters must recognise all of these; the CSV converter lists the formats it parses.

Reading the running balance

The running balance is the most useful column for checking. For every row: previous balance + credit − debit = this row's balance. A break in the chain points to a missing or misread line at that exact spot. When several transactions share a date, some banks print the balance only on the last of them; that is normal.

Common codes and abbreviations

• ACH, BACS, SEPA, EFT: electronic transfers in the US, UK, Eurozone and Canada respectively.
• DD or Direct debit, SO or Standing order: recurring payments pulled by a payee or pushed by you.
• POS, Card purchase, Contactless: card payments; often followed by a merchant code and the last four digits of the card.
• ATM, CSH, Cash: cash withdrawals.
• INT: interest; FEE, SVC, CHG: charges; RTN, RET: returned or reversed items; TFR, XFER: transfers between accounts.
• PENDING or Memo: not yet posted; not part of the balance and usually not on the statement at all.

Credit card statements

On a card statement the balance is what you owe. Purchases, fees and interest increase it; payments and refunds reduce it. The header also carries the credit limit, available credit, minimum payment and payment due date, and a section showing how interest was calculated. When converting, keep the liability convention (charges negative, payments positive) so accounting software treats the account as a liability.