What is a statement of account?
A statement of account is a document that summarizes all financial transactions between a business and a customer over a given period. It shows every invoice issued, payment received, credit note applied, and the running balance, giving both parties a clear picture of where the account stands.
Statements of account are widely used in B2B relationships where customers have ongoing accounts with regular transactions. They’re especially common in the UK, where they’re a standard part of the credit control process.
Unlike an invoice, which requests payment for a single transaction, a statement of account shows the full picture. If a customer has three unpaid invoices and one partial payment, the statement ties it all together.
What should a statement of account include?
A well-structured statement of account includes:
- Header: Your company name, address, and contact details. The customer’s name and address. The statement date and period covered
- Account Summary: Opening balance, total invoiced, total payments received, total credits, and closing balance
- Transaction Detail: A line-by-line list of all transactions in date order: invoices (with reference numbers and amounts), payments received, and credit notes applied
- Ageing Summary: A breakdown of the outstanding balance by age: current, 30 days, 60 days, 90+ days overdue. This is the most important section for credit control
- Payment Terms: A reminder of the agreed payment terms (e.g. “Net 30”) and any late payment policies
- Payment Instructions: How to pay: bank details, reference to quote, accepted payment methods
Last updated: March 2026