Knowing how to write a statement of account is worth ten minutes because it is the cheapest collection tool there is. It is not a demand. It is a reconciliation, and most of the payments it produces come from customers who simply lost an invoice.
What it shows
Everything on a customer’s account over a period: what you invoiced, what they paid, and what is still outstanding.
Nothing on a statement is new. Every line refers to a document that already exists, which is why it cannot be used to claim tax. The customer needs the original invoices for that.
When to send
Monthly, at the same point each month, so the customer’s accounts team learns to expect it. The first working day is common, covering the month just ended.
Send it in addition to invoices, never instead of them. A customer who receives only statements has nothing to approve.
What goes on it
- Your details and the customer’s account name.
- A statement date and the period it covers.
- Each transaction: date, reference, description, amount.
- The balance outstanding.
- Your payment details.
The reference column is the important one. Every line should point at a document number the customer can look up.
A worked example
STATEMENT OF ACCOUNT No. STM-0044
Account: Acme Trading Co Date: 1 September 2026
Period: August 2026
Date Reference Description Amount
04 Aug INV-2026-0038 August retainer 19,800
18 Aug REC-0184 Payment received (19,800)
22 Aug INV-2026-0042 Sprint work 458,400
25 Aug CN-0007 Credit, 3 units (4,950)
Balance outstanding 453,450Four lines and a balance. The customer can tie each one to a document on their side.
Open item or full
Two ways to present it, and they suit different customers. An open item statement lists only what is unpaid. A full statement shows opening balance, everything in the period, and the closing balance.
The choice matters more than it sounds, and it is covered in open item or balance forward.
Ageing
If you have anything overdue, show how overdue. A simple split at the foot works:
Current 458,400
30 days 19,800
60 days 0
90 days+ 12,400A customer who can see something has been outstanding for three months usually deals with it. Many genuinely did not know.
What not to do
Do not put new charges on a statement. If something has not been invoiced, invoice it. A charge appearing first on a statement has nothing behind it that a customer’s system can process.
Do not use it as a threat. The tone that works is neutral: here is your account, here is the balance, here are the payment details. Escalation, if needed, is a separate conversation.
Do not send one to a customer who owes nothing. A statement showing a zero balance is fine occasionally as a courtesy, and irritating monthly.
Payment details
Put them on the statement even though they are on every invoice. Many payments against statements come from customers paying a balance rather than a specific invoice, and you want the reference format stated: usually your account name or the statement number.
Numbering
Its own sequence, STM-0001 upward. Statements are not sales and should not sit in the invoice sequence. See numbering your documents.
Next
For a reusable layout, see a statement of account template. For chasing what the statement reveals, see getting paid on time. Or open the statement generator.