What is Account Summary?
Account Summary is a document that summarizes financial accounts for a specified period, which is often monthly, quarterly, annually or even other custom terms. Credit card bills, brokerage statements, and savings financial documents are all forms of account summaries.
Understanding Account Summary
A summary of accounts is an excellent approach to present an overview of the services and goods charged to your clients. Statements also assist owners in confirming expenditures that customers have previously paid for a billing cycle, typically one month.
Once you have regular clients with whom you must generate monthly, quarterly, or even yearly, this summary helps a lot. A summary of the account is typically issued concerning personal bills for each item purchased by the client.
Because transactions directly occur on a consistent schedule, it is easier to examine all bills sent and money received for a single client in one spot. It may also be used as a repayment recall tool because it informs the business person about the patient's ongoing spending. In that instance, the company owner can issue a credit note.
When a firm encounters contradiction in its data, the summary of the account allows owners to determine whether or not the client has paid his dues. They may discover data discrepancies in this manner. The summary can also assist the business person in determining if the customer owes the amount owed. It can also aid in detecting transactions that have been conducted twice unintentionally.
It also provides enterprises with an accurate pricing record for each product sold to clients. This allows businesses to track data related to a consumer over any span of time and assists in the detection of faults.
Practical Example
Shaun is reviewing his account summary to learn about all the activities. It includes the initial amount, a breakdown of bills sent, money accepted, and any expenses related to the account's maintenance.
In Sentences
- The account summary window displays the interest type, loan terms, loan payback recurrence, and repayments quantity.