A statement of account is a summary of sales made to a customer during the month, and will include any credits issued.
The statement can show in date order a summary of all sales invoices (paid or unpaid) and all payments received, or it can show a summary of just the unpaid sales invoices over several months.
A statement is usually only issued to customer whom the seller has previously approved to have an account with them, and who have signed a sales/purchases terms of agreement.
Statement of Account Excel Template
Statement of Account PDF Template
Here are completed examples. The first layout is based on the Excel Template, and the second one is based on the PDF template.
Some of these details may be really obvious requirements but there may be one or two things you hadn't thought of.
This could be your customer's account number if you allocated them one when approving them as account holders.
Or you could use the month as a reference i.e. April.
Or just leave it blank.
Some businesses date their statements at the last day of the month i.e. April 30, this statement will show all invoices and credit notes for the month of April.
Some businesses date their statements at the first day of the month i.e. May 1, and will show all invoices and credit notes for the month of May.
There is no strict rule about how to date it. Choose your preference and stick with it.
This is the 'total due' balance taken off the statement sent out the previous month.
The sub-total is the sum of all the invoice amounts due minus credits.
Then the interest can be added on – calculated on overdue payments from the previous month.
This ends up with the final total due by the customer. Make the final total stand out in a bold or larger font.
Entering your business name and address on the remittance
makes it convenient for the customer – it means they don't have to
do it and they can simply pop it into a window envelope to be posted
in your customer's name on the right so that when you receive the remittance you know which customer it's from when you open the envelope.
Note: many customers will pay by direct banking but will post the remittance so you know exactly what they are paying, but some customers will not use it which can be a nuisance if they only pay a portion of each invoice leaving you not knowing which invoices to allocate their payment against – ring them in this instance.
Many business customers have a cut off date (such as 5th of the month) beyond which any invoices you send will not be included in their current pay run but held over for the next month's one.
be sure to process all your invoices as soon as the month has ended
and issue your statement of account right away.
Once a statement of account has been sent to the customer, do not then go back and amend an invoice unless it has been discussed with the customer so they are aware of any issues.
If you have to amend an invoice, send the customer both the amended invoice and an amended statement of account showing the new balance.
Home > Bookkeeping Basics > Statement of Account
Leave me a comment in the box below.