What is a statement of account?

A statement of account is a summary sent to a customer listing every invoice, credit note and payment on their account over a period, ending with the balance they currently owe.

A plain-English definition for UK small businesses, not tax advice. Where a figure changes at a Budget, check gov.uk or ask your accountant.

LAST REVIEWED 29 AUGUST 2026 · BIZZLE

What is a statement for?

An invoice asks for one payment. A statement shows the whole relationship: what has been invoiced, what has been paid, what has been credited, and what is still outstanding. It is the document that resolves the conversation that begins 'I thought we had paid that'.

It is not a demand and it is not a new invoice. Nothing on a statement should be new to the customer; every line refers to a document they already have. Its job is to reconcile their records with yours, and, quietly, to remind them of anything overdue.

Most businesses send them monthly to customers on credit terms, and on request to anyone querying a balance. Sending one automatically at month end is the least awkward form of chasing there is.

What does it look like in practice?

A joinery firm's statement to a builder it supplies on 30-day terms, covering June and early July. The running balance shows what is owed at each point; the final figure is what the builder owes today.

DateReferenceDebitCreditBalance
1 JunInvoice 1041£1,200£1,200
15 JunPayment received£1,200£0
20 JunInvoice 1052£850£850
28 JunCredit note CN12£100£750
5 JulInvoice 1060£600£1,350

How is it different from an aged debtors report?

A statement goes to one customer and is written for them. An aged debtors report stays inside the business and covers every customer, grouping what is owed by how overdue it is. The statement is the outward-facing view of one line of that report.

TERMS USED ON THIS PAGE

invoiceaged debtorsAll terms →

COMMON QUESTIONS

Questions people ask.

Should a statement of account show VAT separately?

No. A statement shows document totals, gross of VAT, because it tracks what is owed rather than what was supplied. The VAT breakdown lives on the invoices the statement refers to.

How often should I send statements?

Monthly is the norm for customers on credit terms, sent in the first few days of the month. Sending one only when an account is overdue makes it read as a demand; sending them routinely makes them read as housekeeping, which gets a better response.

Can a customer pay from a statement?

They can, and many do, but the payment should be allocated to the specific invoices it covers rather than left as a lump against the account. A payment that cannot be matched to invoices is the start of the next reconciliation problem.

What if the customer's records disagree with my statement?

Ask them for their version and compare line by line. The difference is nearly always a payment they made that you did not allocate, an invoice that never reached them, or a credit note one side forgot. The statement is the tool for finding which.

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