How the running balance works
The statement starts from the opening balance. Each invoice or debit note is a debit and increases what the customer owes; each payment or credit note is a credit and reduces it. The balance column shows the position after every line, and the last figure is the balance due. If customers have paid more than they owe, the statement shows a credit balance in their favour instead.
- Debit column: invoices and debit notes
- Credit column: payments received and credit notes
- Balance column: running total after each line
- Bottom line: balance due or credit balance
When to send a statement
Most businesses send statements once a month, at the end of the month or in the first days of the next. A statement is also useful before chasing a late payment, because it shows the customer exactly which invoices are still open. The printed note asks the customer to check the statement against their records and report any difference within 14 days; change it in the notes if your terms say otherwise.
Statement of account and invoice
An invoice asks for payment for one sale. A statement summarises many invoices and payments and is not a tax document, so it does not replace a tax invoice where the law requires one. For a single unpaid invoice, the payment reminder letter on this site is usually the better first step.