Bookkeeping
Statement of account: what it is and when to send one
A statement of account lists a customer's invoices, payments and balance on one page. What goes on it, when to send it, and how it differs from an invoice.
4 Oct 2026 · 6 min read
A cafe in Melbourne buys bread from you every week. By the end of the month there are several invoices, a payment or two and a credit note for a returned tray. The owner asks a simple question: “What do I owe you?” Sending every invoice again does not answer it. A statement of account does. It is one page that lists everything and ends with a single number.
What a statement of account is
A statement of account is a summary of your dealings with one customer. It lists the invoices you sent, the payments they made and any credit notes, and it shows what is still owed. It adds nothing new: every line on it already exists as an invoice, a payment or a credit note. That is the main thing to remember. A statement reports. It does not bill.
How it differs from an invoice
| Invoice | Statement of account | |
|---|---|---|
| What it covers | One sale | Everything between you and one customer, over a period or as of today |
| What it does | Asks for payment of that sale | Shows where the account stands |
| Its number | Its own number in your series | No number of its own. It refers to the invoice numbers |
| Tax | A tax document in most countries | Not a tax document. Nobody claims tax from it |
| If something on it is wrong | Fix it with a credit note | Fix the invoice or payment behind it, then send a new statement |
So a statement never replaces an invoice. A customer who needs a document for their tax records needs the invoice itself; our checklist of what every invoice must show covers that.
Two kinds, for two jobs
An activity statement
This covers a period, usually a month. It starts with the opening balance, lists every invoice, payment and credit note in date order with a running balance, and ends with the closing balance. It is the one accountants ask for, because they can tick each line against their own books.
An outstanding statement
This lists only the invoices that are still unpaid today, each with its due date and what is left on it. It is shorter, and it is the one to send when your aim is to be paid.
What goes on it
- The words “Statement of account” at the top, so nobody takes it for an invoice;
- your business name and details, and the customer's;
- the date of the statement and the period it covers;
- the opening balance, for an activity statement;
- each invoice with its number, date and amount;
- each payment with its date, and each credit note with its number;
- any late fee charged or discount given, on its own line;
- the closing balance, or the total outstanding;
- how much is overdue, split by age: not yet due, 1 to 30 days, 31 to 60 days and so on;
- how to pay, with a request to mention the invoice number.
If you bill a customer in more than one currency, keep each currency in its own section with its own total. Adding dollars to euros gives a number that means nothing.
When to send one
- Every month, to customers who buy often. Shops, restaurants and trade customers with several invoices a month expect it, and many pay from the statement, not from each invoice.
- When several invoices are overdue. One statement is clearer and kinder than five reminders.
- When a customer says “I think I already paid that”. The statement shows which payment went against which invoice.
- At the end of the year, or when their accountant asks. They will want to confirm the balance in their books matches yours.
- After a credit note, a refund or a part payment. It shows the account after the change.
- Before a difficult talk. If you plan to stop work or change terms, both sides should start from the same numbers.
Do not send one to a customer with a single invoice that is not yet due. It adds nothing. And do not send a statement in place of an invoice the customer never received. Send the invoice.
What to write with it
- Monthly, nothing overdue: “Hello, here is your statement for October. The balance is A$1,870.00, none of it overdue. Thank you.”
- With overdue invoices: “Hello, here is your statement as of 31 October. A$1,870.00 is outstanding, of which A$770.00 is overdue. Could you let me know when the overdue amount will be paid?”
- To settle a question: “Hello, attached is a statement of everything from July to October, with each payment shown against its invoice. If any line does not match your records, tell me which one and I will check it.”
Keep the message short and let the page carry the detail. For single late invoices, our payment reminder messages are a better fit.
When the customer says it is wrong
A statement is only as good as the records behind it. If the customer's number differs from yours, the cause is nearly always one of four things:
- A payment you have not recorded. Check your bank. See how to match bank payments to invoices.
- A payment recorded against the wrong invoice. The total is right but the wrong invoice looks unpaid.
- A short payment. Fees or tax kept back. See why your client paid less.
- An invoice or credit note they never received. Send it again.
Fix the record, then send a fresh statement. Never edit the statement by hand to make it agree. If the customer is questioning an invoice itself, that is a dispute; see what to do when a customer disputes an invoice.
The short version
- A statement of account lists a customer's invoices, payments and credit notes, and shows what is owed.
- It is not an invoice: it has no number, bills nothing new and is not a tax document.
- An activity statement covers a period with opening and closing balances. An outstanding statement lists only what is unpaid.
- Send one monthly to regular customers, when several invoices are overdue, and when a balance is in question.
- Show overdue amounts by age, and say how to pay.
- If it is wrong, fix the invoice or payment behind it and send a new one.