Statement of Account

What is a statement of account?

A statement of account summarizes all transactions between you and a customer or vendor over a period, typically a month. It shows opening balance, invoices, payments, credits, and ending balance. Statements help customers reconcile their records with yours and serve as a reminder of amounts due. Sending regular statements is a collection best practice.

Statement vs invoice

An invoice requests payment for specific goods or services delivered. A statement summarizes account activity and current balance. Invoices typically have specific due dates. Statements show overall account status. Some customers pay from invoices as received. Others prefer to pay the statement balance periodically. Understand how your customers prefer to operate.

Using statements for collections

Monthly statements remind customers of outstanding balances without the confrontational tone of a collection letter. Highlight past due amounts. Include aging showing how long balances have been outstanding. A statement showing 60-day-old invoices prompts action more effectively than hoping customers remember invoices received two months ago. Automate statement generation to ensure consistency.