How to Write a Statement of Account

A statement summarises; an invoice charges

It is worth being clear on the distinction. An invoice is a demand for payment for a specific supply. A statement of account is a summary — it lists the invoices issued, payments received, and the balance currently owing across an account over a period. A statement does not itself create a new charge; it reflects charges already invoiced.

That difference shapes how each is used. You raise an invoice when you deliver work. You send a statement to give the client a consolidated view, most often as a reminder that one or more invoices remain unpaid. Confusing the two — treating a statement as a fresh bill — leads to double-counting and disputes.

Show invoices, payments and the balance

A useful statement lays out the account's movement clearly. The classic layout lists each transaction in date order with a running balance.

• Opening balance for the period
• Each invoice issued, with date, number and amount
• Each payment received, with date and amount
• The closing balance currently owing

The client should be able to read top to bottom and understand exactly how the balance got to where it is. A statement that just shows a total, with no movement behind it, is far less persuasive when you are nudging for payment.

Use ageing to make overdue obvious

The most powerful feature of a statement is ageing — grouping the balance by how overdue it is: current, 30 days, 60 days, 90+ days. Seeing '$3,200 in the 60-day column' lands very differently from a single undifferentiated total, and it gently signals that an account needs attention.

Ageing is also fair: it shows the client precisely which invoices are dragging, so they can act on the specific ones overdue rather than guessing. For your own purposes, the ageing columns tell you at a glance which accounts to follow up first and which are comfortably within terms.

What to include, and when to send

Your statement-of-account checklist:

• The heading 'Statement of Account' (so it is not mistaken for an invoice)
• Your business name and ABN, and the client's details
• The statement date and the period covered
• Opening balance, invoices, payments and closing balance
• An ageing summary of the amount owing
• A clear total due and your payment details

Send statements on a predictable rhythm — month-end is common — and as a first-step reminder when invoices slip. Generate one in moments with the free Statement Generator, or raise the underlying invoices with the free Invoice Generator.