Statement of Account: What It Is, Example and Template

A statement of account is a summary you send a client showing every invoice, payment and credit on their account over a period, and the balance they still owe. Where an invoice asks for payment for one job, a statement shows the whole relationship at a glance, which makes it the quickest way to catch missed payments and settle "I thought we'd paid that" conversations.

This guide covers what to put on a statement, a worked example with an ageing summary, the difference between open-item and balance-forward statements, when to send one, and a copy-ready template.

Looking for your own bank statement? That's a different document; contact your bank. This page is about statements a business sends its customers.

What is a statement of account?

A statement of account (also called a customer statement or account statement) lists the transactions between you and one customer for a set period: invoices issued, payments received, credit notes applied, and the running balance. It ends with the total amount due and, usually, how overdue it is.

It isn't a new request for payment for new work, it isn't a receipt, and it isn't a legal requirement. It's an accounts-receivable tool. Businesses send statements because clients' accounts teams reconcile against them, and because a single page showing three overdue invoices gets paid faster than three separate reminders.

What to include on a statement of account

Your business details: name, ABN or tax ID, address and contact email.
Customer details: their business name, address and your account or customer reference.
Statement date and period: for example, "Statement as at 30 September 2026, for 1 to 30 September". Pick month-end and stick to it.
Opening balance: what was owing at the start of the period (for balance-forward statements).
Each transaction: date, type (invoice, payment, credit note), reference number, amount, and the running balance.
Closing balance: the total now owing.
Ageing summary: how much of the balance is current, and how much is 1 to 30, 31 to 60, 61 to 90 and 90+ days overdue.
How to pay: bank details, PayID or a payment link, plus the reference to use.

Statement of account example

Here's a balance-forward statement for one client for September 2026, with payment terms of 14 days:

Date	Type	Reference	Amount	Balance
1 Sep	Opening balance			$1,320.00
4 Sep	Payment received	Thank you	–$1,320.00	$0.00
8 Sep	Invoice	INV-1051	$2,200.00	$2,200.00
20 Sep	Credit note (for INV-1051)	CN-009	–$220.00	$1,980.00
22 Sep	Invoice	INV-1054	$880.00	$2,860.00
25 Sep	Payment received	INV-1051 part	–$1,000.00	$1,860.00
30 Sep	Closing balance			$1,860.00

Ageing summary as at 30 September (days past due date):

Current	1–30 days	31–60 days	61–90 days	90+ days	Total due
$880.00	$980.00	$0.00	$0.00	$0.00	$1,860.00

How the ageing works: INV-1051 ($2,200) was due on 22 September. After the $220 credit note and the $1,000 part payment, $980 is still owing and it's 8 days overdue, so it sits in the 1–30 column. INV-1054 ($880) isn't due until 6 October, so it's current. The client can see at a glance that $980 needs paying now.

Open-item vs balance-forward statements

There are two ways to lay out a statement, and most ranking guides don't mention the choice:

	Open-item statement	Balance-forward statement
What it lists	Only invoices that are still unpaid, each with its remaining balance	Everything that happened in the period, starting from last period's closing balance
How payments apply	Each payment is applied to a specific invoice	Payments reduce the running balance, usually against the oldest invoice first
Best for	Project work and trades, where each job is invoiced and paid separately	Recurring clients on retainers or regular services, such as cleaning, bookkeeping or maintenance
Downside	Doesn't show the history	Harder to see which invoice a payment was for

For most sole traders doing jobs for different clients, an open-item statement is clearer: the client sees exactly which invoices are still open. For a client you bill every week or month, balance-forward shows the full picture.

What 30, 60 and 90 days mean on a statement

The ageing summary groups the balance by how long it has been owing. There are two ways to count:

From the due date (Current, 1–30, 31–60, 61–90, 90+ days overdue). This is the most useful for chasing payment, because "current" means not yet due.
From the invoice date (0–30, 31–60, 61–90, 90+ days old). This is common in accounting reports, but a 14-day invoice can be overdue while still sitting in the 0–30 column.

Say on the statement which one you use. Anything in 61–90 or 90+ is where you'd move from reminders to a phone call or a letter of demand.

Statement of account vs invoice vs receipt vs remittance advice

Document	Who sends it	What it covers	What it's for
Invoice	You	One sale or job	Requests payment for that work
Statement of account	You	All activity over a period	Summarises what's owing across invoices
Receipt	You	One payment	Confirms you received it
Remittance advice	Your customer	One payment	Tells you which invoices it covers

In Australia, a statement isn't a substitute for a tax invoice. If you're registered for GST, your client claims GST credits from your tax invoices, so keep issuing a tax invoice for each sale and use the statement as a summary. See invoice vs receipt and what a remittance advice is.

When to send a statement of account

Monthly, a few days after month-end. This is the standard rhythm, not a rule.
When a client has more than one invoice outstanding, so they can pay them together.
When a client's accounts team asks for one; many reconcile supplier accounts from statements.
Before the end of the financial year (30 June in Australia) or the calendar year in the US, so both sides agree the balance.
When a payment doesn't match what you expected, to show exactly what's been applied.
Before you escalate: attach the statement to a final reminder or letter of demand so there's no argument about the amount.

When the client says your statement is wrong

Work through this checklist before you argue about the balance:

A payment you haven't recorded: ask for the date, amount and reference, and check your bank.
A payment applied to the wrong invoice: common with balance-forward accounts; re-apply it.
A credit note they've deducted that you haven't issued, or one you issued that they haven't applied.
Different cut-off dates: a payment made on 30 September may land on 1 October.
A disputed invoice: agree what's in dispute and keep chasing the rest. See handling a disputed or delayed invoice.

Statement of account template

Copy this, fill in your details, and send it as a PDF or in the body of an email:

STATEMENT OF ACCOUNT
[Your business name] · ABN/tax ID [number] · [email] · [phone]

To: [Customer business name], [address]
Account reference: [reference]
Statement date: [date]          Period: [start date] to [end date]

Date        Type             Reference     Amount       Balance
[date]      Opening balance                             [amount]
[date]      Invoice          [INV-...]     [amount]     [balance]
[date]      Payment          [reference]   -[amount]    [balance]
[date]      Credit note      [CN-...]      -[amount]    [balance]

Closing balance due: [amount]

Ageing (days past due):  Current [ ]  1-30 [ ]  31-60 [ ]  61-90 [ ]  90+ [ ]

How to pay: [bank details / PayID / payment link]. Please use reference [reference].
Questions about this statement: [name, email]

And a short cover email:

Subject: Statement of account for [month], [your business name]

Hi [name],

Please find your statement for [month] attached. The balance due is [amount],
of which [amount] is overdue (invoice [number], due [date]).

You can pay by [payment method] using reference [reference]. If your records
show something different, let me know and I'll check it straight away.

Thanks,
[your name]

Keep statements effortless

Statements are only as accurate as your invoice and payment records. InvoiceSonic keeps each client's invoices, part payments and receipts in one history, sends automatic reminders for anything overdue, and exports everything to CSV for your accountant. Create an invoice with the free invoice generator, or see the invoice statement template for a ready-made layout.

Frequently asked questions

What is a statement of account?
A statement of account is a summary a business sends a customer listing the invoices, payments and credits on their account over a period, and the balance still owing. It's usually sent monthly.

Is an invoice the same as a statement of account?
No. An invoice requests payment for a specific sale or job. A statement summarises all invoices, payments and credits for a customer over a period, and shows the total balance due.

Is a statement of account a receipt?
No. A receipt confirms that one payment was received. A statement shows a customer's whole account, including payments received and what's still owing.

Is a statement of account a legal requirement?
No. Statements are a standard business practice, not a legal requirement. Invoices, and tax invoices where they apply, are the documents with legal requirements.

How often should I send a statement of account?
Monthly is the norm, usually a few days after month-end. Also send one when a client has several invoices outstanding, when they ask for it, or before the end of the financial year.

What does 30, 60, 90 mean on a statement?
It's the ageing summary: how much of the balance has been owing for up to 30 days, 31 to 60 days, 61 to 90 days and over 90 days. Many statements count from the due date, so "current" means not yet due.

What is the difference between open-item and balance-forward statements?
An open-item statement lists only unpaid invoices and applies each payment to a specific invoice. A balance-forward statement starts from the previous closing balance and lists every transaction in the period with a running balance.

What should I do if a client disputes their statement?
Check for unrecorded payments, payments applied to the wrong invoice, unapplied credit notes and different cut-off dates. If one invoice is genuinely disputed, agree what's in dispute and keep collecting the rest.