What is an Itemized Statement?
An itemized statement is a detailed record of certain activity that has occurred in an account for a given period of time.
How Does an Itemized Statement Work?
Monthly bank statements for common checking accounts often are itemized statements. They show each deposit and withdrawal in the account during a given month. Nearly every kind of account has an associated itemized statement, including things such as cable bills, student loans, savings accounts, water bills, car loans, and invoices.
Most itemized statements are electronic records, and the activity is in chronological order.
Why Does an Itemized Statement Matter?
Itemized statements are important for understanding account activity, balancing an account, or reconciling activity. They are also important for credit accounts, such as credit cards, because they help identify unusual and possibly fraudulent transactions. The IRS and law enforcement authorities may even look at itemized statements to identify tax evasion or improper activity.