Reviewed by Sep 28, 2020| Updated on
What Does Account History Mean?
Account history is the list of all operations done within an account, generally from the outset. The financial history in a bank account contains all transactions the account holder has made along with the passive entries, such as the interest paid on balances credited to the account. The account history is also called a "leader," depending on the location of the account.
More About Account History
The account history can be a vital tool for credit card companies. This is because the company can keep track of the credits used. Also, it helps figure out identity theft or fraud, particularly when transactions are not ordinary in terms of the amount spent or location of purchase. An account statement is the file where history is recorded; it is important to retain the account statements.
Most financial institutions send a monthly statement to the consumers pertaining to their savings, current, and brokerage accounts. This statement will include the account history for that month.
How is Account History Used?
A history of an account may be referred to when an individual or organisation wants a record of transactions to answer questions about suspicious transactions. This may be particularly useful if questionable activity is suspected in addition to cases of fraud.
Consider an example where an individual has accepted or transferred ill-gotten funds through his bank account; the transaction will be recorded.
Likewise, if an organisation's assets and funds do not match their expected levels, a financial roadmap may be provided by the account history. This may reveal who has accessed the account and the transaction has been instituted. In the cases of corporate fund embezzlement, account history can be a method for identifying the problem and those responsible for it.
Reviewing the history of an account will determine income trends and expenses paid over the given period. This can be used to build a budget or other financial operating plan, endorsing the expectations presented in those structures with the account history.
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