Core concepts
Statement of account
A statement of account is a summary document that lists all invoices, payments, and the outstanding balance for a customer over a period of time.
What a statement of account is
A statement of account gives a customer a running summary of their activity: the invoices issued, the payments received, any credits, and the total amount still owed. It’s typically sent on a regular cycle (often monthly) rather than for a single transaction.
Businesses use statements to remind customers of outstanding balances and to help both sides reconcile their records.
Statement vs. invoice
An invoice bills for one specific sale and requests payment for it. A statement of account doesn’t bill for new charges — it summarizes the status of multiple invoices and the overall balance over a period.
In short: send an invoice to charge for a job; send a statement to show the customer everything outstanding across all their invoices.
Example: At month-end a supplier sends a statement showing March’s three invoices ($1,200, $800, $1,500), one payment ($1,200), and a closing balance of $2,300 still due.
FAQs
Frequently asked questions
What’s the difference between a statement and an invoice?
An invoice requests payment for one specific sale; a statement of account summarizes all invoices, payments, and the outstanding balance for a customer over a period. A statement doesn’t create new charges.
How often should I send a statement of account?
Monthly is most common, though you can send them on any regular cycle or on request — especially useful for customers with multiple open invoices.
Related terms
Invoice
An invoice is a document a seller sends to a buyer that itemizes goods or services provided and requests payment by a stated due date.
Past-due invoice
A past-due invoice is an invoice that has not been paid by its due date, making the balance overdue.
Remittance advice
Remittance advice is a document a payer sends to a supplier to confirm that a payment has been made and to specify which invoices it covers.
Put it into practice
WaffleInvoice lets you create branded invoices, set payment terms, collect payments online, and automate reminders — free for unlimited invoices.
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