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.
Create an account statement in just a few clicks with SumUp Invoices.
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
It isn’t common to use an account statement to remind a customer to pay a single overdue invoice. Instead, you should send a reminder letter.
Some businesses may never send account statements to their customers, even if they’re 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.
Unlike invoices which follow strict legal guidelines, there are no 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 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.
The easiest way to create a statement of account is with invoicing software like SumUp Invoices.
With SumUp Invoices, you can quickly save the details of each of your customers. To generate a statement of account for a specific customer, just go to the ‘Customers’ tab, find their name, and click on the ‘Account Statement’ button. You’ll get a PDF that outlines the transaction history between you and your customer, including any outstanding payments.