What is Statement of Account?
A statement of account is a document summarising all invoices, payments, and credits between a supplier and customer over a period, showing the outstanding balance.
A statement of account (sometimes called a customer statement) is a summary document listing all transactions between your business and a specific client over a given period. Unlike an invoice, it is not a request for payment for a particular job - it's an overview of the entire relationship.
- **What a statement of account includes:**
- Opening balance: at the start of the period
- All **invoices** issued during the period
- All **payments** received
- Any **credit notes** applied
- The **closing balance** (amount currently outstanding)
- **Why send statements of account:**
- Prompt payment: - a polite reminder of what is owed without chasing individual invoices
- Reconciliation: - helps your client's accounts team match their records to yours
- Dispute resolution: - highlights discrepancies early before they become bad debts
- Professional image: - demonstrates organised and transparent bookkeeping
When to send them: Most businesses send statements monthly, typically at the end of each calendar month. Some send them weekly for high-volume accounts or quarterly for low-activity clients.
Statements vs invoices: An invoice requests payment for a specific transaction. A statement summarises all outstanding transactions. Statements do not replace invoices - your client still needs individual invoices for their records and VAT.
Examples
A supplier sends a monthly statement showing three unpaid invoices totalling £4,200
A design agency uses statements to remind clients of overdue balances without chasing each invoice separately
A client queries a statement because a payment was not recorded, leading to a quick reconciliation
Related Terms
Accounts Receivable
Accounts receivable (AR) is the money owed to a business by its customers for goods or services delivered but not yet paid for.
Invoice
An invoice is a commercial document issued by a seller to a buyer, listing the products or services provided and requesting payment.
Aged Debtor Report
An aged debtor report (aged receivables report) categorises outstanding invoices by how long they have been overdue, helping businesses prioritise collections.
Credit Note
A credit note is a document issued by a seller to reduce the amount a buyer owes, typically for returned goods, overcharges, or discounts.
Put This Into Practice
Create professional invoices with Experi. Our software handles statement of account and more - so you can focus on your business.