Statement of account - What is a statement of account?
A statement of account, also known as an account statement or customer statement, is a document that outlines the transactions between a buyer and a seller.
It’s easy to create a statement of account with invoicing software. Find out more about creating customer statements with Debitoor - or sign up now to get started!
Account statements can serve a few different purposes. By listing every transaction between a business and a customer, a statement of account can be used to:
- Calculate an outstanding account balance
- Remind a customer to settle their account balance
- Avoid disputes with customers.
When would I send a statement of account?
Some businesses may never send account statements to their customers, even if they are used internally to get an overview of customer activity.
At the other end of the spectrum, some businesses issue account statements regularly; this is particularly common among businesses with customers who often make purchases on credit.
Many small businesses will only send a statement of account if a customer has requested one or if they want to remind a customer to settle their outstanding balance. However, account statements may still be used regularly to monitor a customer’s account.
What should I include in a statement of account?
Unlike invoices - which follow strict legal guidelines - there are few official requirements for customer statements. However, account statements should include enough information to give an accurate, up-to-date overview of a customers’ transaction history. The type of information you might expect to find on a statement of account includes:
- An overall balance. This might be positive (if the customer owes you money), negative (if you own them money), or at 0 (if all payments have been settled).
- A date range. You might create an account statement that covers a specific month, year, or quarter - or you might want to show every single transaction between you and your customer. Either way, the dates should be clear.
- Every transaction made within the specific date range, including sales (paid upfront or on credit), payments, and refunds. You should list the date and value of each transaction.
- Document numbers to support each transaction. This might include the numbers from invoices, credit notes, or payment receipts.
- Contact details for you and your customer - including company name, address, phone number, or email address.
- A currency. This is particularly important if you have customers abroad. Even if you have transactions in multiple currencies, an account statement should only be in one.
How can I create a statement of account?
The easiest way to create a statement of account is with accounting & invoicing software like Debitoor. With Debitoor, you can save the details of each of your customers. To generate a statement of account for a specific customer, just go to the ‘Contacts’ tab, find their name, and click on the ‘Statement of Account’ button. You’ll get a PDF that outlines the complete transaction history between you and your customer, including any outstanding payments.