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Statement of account

A summary of everything a client owes across all their open invoices.

Part of the invoicing glossary, plain definitions of the words on an invoice, a quote and a job.

In one line

A summary of everything a client owes across all their open invoices.

Also called a statement of account or a customer statement.

What it means in practice

A statement is not an invoice. It lists the invoices, their dates, what has been paid and what is outstanding, which is the fastest way to restart a conversation with a client who has several bills open.

Send one monthly to any client with more than a couple of live invoices. It often surfaces the one invoice that never reached their system.

Example. Four invoices, two paid, $4,300 outstanding, oldest 46 days.

Where it shows up on the paperwork

A list rather than a demand: each open invoice with its date, amount, anything paid, and the total outstanding. It carries no new charges of its own.

What goes wrong

  • Sending a statement instead of chasing a specific invoice, which is easy for the client to file and forget.
  • Including invoices the client has already paid, which invites a reply about the statement rather than the money.
  • Sending statements to clients with one open invoice, where a reminder would be clearer.

The tools for this

Related terms

  • Accounts receivableThe money your clients owe you on invoices you have sent but not yet been paid for.
  • Aging reportA list of unpaid invoices sorted by how long they have been outstanding.
  • Remittance adviceThe note a client sends saying which invoices a payment covers.

All 57 terms

Common questions

What is the difference between a statement and an invoice?

An invoice bills for specific work and creates the debt. A statement summarises what is already owed across invoices and creates nothing new.

How often should I send statements?

Monthly, to clients with more than a couple of live invoices. It often surfaces the one invoice that never reached their system.