What Is a Statement of Account?

What a statement shows

A statement is a ledger for one customer over a stated period.

• Your details and the customer's
• The statement date and the period it covers
• The balance brought forward from the previous period
• Each invoice issued, with its number, date and amount
• Each payment received and each credit note applied
• The closing balance, and any part of it that is overdue

When to send one

Statements suit customers you bill often, because they would otherwise have to add up many invoices themselves.

• At the end of each month for regular customers
• When a customer asks which invoices are still unpaid
• Alongside a payment reminder, so the customer sees every open item in one place
• When the customer's records and yours disagree

A worked example

A customer starts the month owing 400.00. You issue INV-0051 for 1,000.00 and INV-0053 for 250.00. They pay 400.00, and you apply credit note CN-0003 for 50.00.

Closing balance: 400.00 + 1,000.00 + 250.00 - 400.00 - 50.00 = 1,200.00.

Statement or invoice?

An invoice is the request for payment for a particular sale. A statement is a summary and is not usually a substitute for the invoices themselves, so keep sending an invoice for each sale.