What is a statement of account?

A statement of account is a summary you send a customer listing the invoices, credit notes and payments on their account over a period, with the balance outstanding at the end. It isn't an invoice and doesn't replace one: it creates no new amount due, it summarises documents that already exist. It's useful at month end, before chasing overdue invoices, or when a client's records and yours don't agree. Each line quotes a document number and date, so every figure traces back to an invoice, a credit note or a payment. Example, statement for September: opening balance €0; INV-0107 €1,210; INV-0112 €600; CN-0012 −€360; payment received −€1,450; INV-0118 €450; closing balance €450. Common mistakes: sending a statement that leaves out a credit note or payment the client knows about, which undermines the whole document, and asking the client to pay “the statement” rather than naming the overdue invoices. The invoice numbers are what their accounts team pays against.