Bank Statement

Meaning & Definition

Bank statements provide a summarised list of all transactions which have been carried out on your bank account, including any withdrawals from the account as well as deposits into the account. For payroll and HR purposes, bank statements are generally used to confirm any type of payment made to an employee for salary, reimbursement for expenses or bonuses, etc., and can also provide evidence of any transactions made to an employee’s payroll account.

Important aspects of Bank Statement

• A tool to validate payroll transaction amounts, documentation of reimbursements and expense claims filing.
• Provides supporting documents for employee verifications during the background screening.
• Provides a basis for resolving errors in payroll.
• For preparing and storing financial documents or for auditing purposes.

Governance and Policy

There is no specific statutory requirement associated with the term.

When using bank statements for employees, it should be consistent with:

• Policy and procedures concerning payroll processing and reimbursement of travel and other expenses. 
• Employee data privacy and confidentiality, audit and financial records, and payroll records. 

Thus, organisations must obtain employee consent before accessing their bank statement.