Statement of Account: What It Is and How to Use It

What is a statement of account?

Here’s the short version: a statement of account is a running summary of all the financial transactions between you and a client.

Think of it as a polite way to say, "Here’s what you’ve been invoiced, here’s what you’ve paid, and – spoiler alert – here’s what you still owe."

It’s not an invoice. An invoice is a one-time thing. A statement of account is the big picture – a rolling record of invoices, payments, credits, and balances. It’s like a playlist of everything that’s happened financially between two parties.

Most businesses send them out at the end of each month. But you can also send one when a client casually forgets to pay and you want to nudge them – nicely.

Why bother with a statement of account?

Good question. Here’s what they help with:

🔍 Clarity: Everyone knows where things stand. No surprises.
🔔 Reminders: Without sounding aggressive, it says, “Hey, this invoice is still hanging around.”
🗂️ Records: Handy during tax season. Or when auditors come knocking.
✅ Proof: If there’s ever a disagreement, it helps show who paid what (and when).

If you work with multiple clients across borders – hello, Luxembourg – you want clear records. Currency switches, VAT issues, different billing cycles… It adds up. This helps.

What’s in a typical statement of account?

You don’t need to overcomplicate it. A standard statement of account usually includes:

Client details (name, address, email – basically what’s on your invoice)
Date of the statement
Period covered (like Jan 1 to Jan 31)
List of transactions: invoice references, dates, payments, credits
Amounts owed and paid
Current balance (this is the number that matters)

Here’s a simple layout:

Date	Reference	Description	Debit (€)/ Credit (€)	Balance (€)
01/05/2024	INV-2201	Web design fee	+2,000.00	2,000.00
05/05/2024	PMT-1357	Payment received	-1,000.00	1,000.00
10/05/2024	INV-2205	Hosting renewal	+500.00	1,500.00
15/05/2024	CRN-2207	Credit note	-100.00	1,400.00

When should you send a statement of account?

You’ve got options. Monthly is standard, especially if you bill regularly. But:

You can send it any time a client asks
You can use it as a gentle reminder
You can send one when wrapping up a project, just to confirm the books are closed

It’s also good form to send a statement before chasing unpaid invoices. It keeps the tone friendly and professional.

How to create a statement of account without losing your mind

Open your accounting software.
Export the client’s transactions.
Check everything. Typos love invoices.
Format it clearly. Totals, dates, references.
Email it or share via your client portal.

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A couple of examples of how statements of account are used

Example 1: A training company with multiple monthly clients

Let’s say you run a training company and provide courses to corporate teams. You invoice Company A every month for three different courses – leadership, soft skills, and compliance. Each course is priced differently, and the company prefers to pay quarterly.

Here’s how your statement of account might look at the end of March:

Date	Reference	Description	Debit (€)/ Credit (€)	Balance (€)
05/01/2024	INV-401	January Training Sessions	+1,500.00	1,500.00
05/02/2024	INV-402	February Training Sessions	+1,500.00	3,000.00
05/03/2024	INV-403	March Training Sessions	+1,500.00	4,500.00
25/03/2024	PMT-6001	Quarterly payment received	-4,500.00	0.00

You send this along with a friendly email: “Just a summary of Q1 – thanks for staying on top of payments!” Everyone stays aligned, and no one has to chase anyone.

Example 2: A furniture wholesaler managing different customer payment terms

Suppose you run a small wholesale furniture business and have customers who pay on different terms – some net 30, some net 60. One customer places several orders in a month but only pays once every two months.

Your statement of account will help both of you keep track:

Date	Reference	Description	Debit (€)/ Credit (€)	Balance (€)
03/01/2024	INV-710	An order for office desks	+3,200.00	3,200.00
10/01/2024	INV-711	Conference chairs order	+2,800.00	6,000.00
05/02/2024	PMT-901	Partial payment received	-3,000.00	3,000.00
14/02/2024	INV-712	Lounge furniture set	+1,500.00	4,500.00

You include a note: “Your net 60 terms cover up to March 15. Here’s where we stand as of today.” You’ve just saved yourself from an awkward back-and-forth.

Conclusion

A statement of account may sound like yet another accounting document, but it’s actually one of the most useful ones. It keeps your client relationships smooth, your records clean, and your cash flow in check. Whether you run a freelance business, manage corporate training, or ship furniture across Luxembourg, having a clear summary of who owes what (and when) is just good business.

If you’re still managing this manually or using spreadsheets to build statements from scratch, please stop. Tools exist. They’ll save you time, reduce errors, and help you get paid faster. And if you need help automating the tedious tasks, our accounting service is here to assist you.

Start sending statements that get read – and paid.

FAQ

What is a statement of account in simple terms?

Imagine your business relationship as a conversation. A statement of account is the written summary of what’s been said – what you charged, what they paid, and what’s still open. It’s like a summary email for your money. It helps keep both sides on the same page, especially when you're juggling multiple transactions.

How is it different from an invoice?

An invoice is a request for a single payment. A statement of account, on the other hand, is more like your billing history – it tracks multiple invoices, payments, and credits over time. It tells the full story, not just one chapter. So if you're working with a client long-term, a statement helps you both keep track.

Do I really need to send one every month?

Not necessarily. But if you're dealing with clients on a rolling basis or providing recurring services, sending a monthly statement of account makes your life (and theirs) easier. It's also a good way to catch any errors or missed payments before they turn into bigger problems.

Can it be used as a payment reminder?

Absolutely. A statement is a great way to remind clients of outstanding balances without being too direct. It shows the full picture rather than targeting a single overdue invoice. And in most cases, it gets better results than sending a “Just following up…” email.

Can a statement of account be used as a payment reminder?

Yes, many businesses use statements of account as polite and professional reminders, especially when clients have overdue balances. It's a non-confrontational way to prompt payment while maintaining clear communication.

Where can I find a statement of account sample?

You can refer to the example provided above in this article. Many accounting platforms also offer downloadable templates, and our own accounting service includes automated statement generation tools.

Understanding the Statement of Account