Statement of account sample letter for invoice billing

A statement of account is a billing document sent to customers to provide an itemized list of the services or products they have received, as well as the associated charges.

This document can also be referred to as a statement of account email, statement of account letter, or customer statement.

In this article, we will outline what goes into a statement of account letter, when you should send it, and how to format it correctly, as well as a helpful template for you to use.

What is a statement of account?

A statement of account, also referred to as a customer statement, is a document that summarises the goods or services a customer has received and their associated charges.

A statement of account usually includes the customer's name and account number, a list of transactions with dates, a reference to the original invoices or purchase orders, and the current balance. When the document specifies only overdue amounts, its often called an aging report.

It is important to note that a statement of account is not an invoice. An invoice is a request for payment. A statement of account is a summary of what the customer owes. Despite the similarities between the two documents, they serve different purposes.

A statement of accounts shows a summary of all transactions for a given period, and can include multiple transactions or invoices. A statement of accounts contains the following: 

• A summary of all transactions
• The customer's name and account number
• A list of transactions with dates
• A reference to the original invoices or purchase orders
• The current balance
• Past due amount, if any
• The date the statement was prepared

An invoice simply summarises the information for one particular sale transaction. For example, one service that is purchased, or one order of goods from a business. An invoice contains the following:

• A request for payment
• The name, address, and contact information of the person or company billing
• A description of the goods or services provided
• The date(s) services were performed
• The amount due for each line item
• Terms of payment (due date, discount percentage for early payment)
• Any other relevant information about the transaction including late payment fees

See our guidance on creating the perfect invoice and what to include. While an invoice requests payment for goods or services, a statement of account simply lists what the customer owes. 

Sending out a statement of account email to your customers is a great way to improve communications and keep them updated on transactions and what they owe.

Sample email to send a statement of accounts

Creating a statement of account letter is simple and only requires a few steps. To help out, we've put together a statement of account email template for you to use. This sample email to send a statement of accounts to your customer can be easily customized to fit your needs.

To: customer@email.com

Subject: Your account statement from [Your Company]

Hello [Customer Name],

Thank you for being a valued customer of [Your Company]. We appreciate your business and want to ensure that you are always up-to-date on what you owe.

Please find attached your latest statement of account for the period [Date] to [Date]. If you have any questions, please do not hesitate to contact us.

Thank you for your time, and have a great day!

Sincerely, [Your Company] [Your Name]

Why Is a statement of account important?

A statement of account is an important tool for keeping track of what a customer owes to your business. By sending regular statements, you can help prevent customers from falling behind on payments and help keep your business's cash flow healthy.

From a customer's point of view, a statement of account can be helpful in keeping track of what they owe, especially if they have multiple invoices from different businesses.

Sending out regular statements can also help build trust with customers and show that you're a professional and reliable business.

When to send a statement of accounts to customers?

How often you send a statement of account to customers will depend on your business and customer preferences. Some businesses choose to send statements monthly, while others send them quarterly or annually.

You can also tailor the frequency of statements to each customer, such as sending monthly statements to customers who have a history of late payments and quarterly statements to customers who always pay on time.

When it comes time to send out your business's statement of accounts, you should keep a few things in mind. First, make sure that all the information included is accurate and up-to-date.

Including outdated or incorrect information could frustrate customers and damage your relationship with them.

Second, be sure to include clear instructions on how customers can make a payment. If you're not clear about how or when customers should pay, they may become confused and end up making a late payment - or no payment at all.

Finally, try to make your statement of account as user-friendly as possible. Include a summary of the customer's account activity, highlight any outstanding balances, and make it easy for customers to find the information they need.

By following these tips, you can ensure that your statement of account is professional, informative, and helpful - and that your customers will appreciate receiving it.

What is a 'time bucket'?

In the context of statements of account, a time bucket is a grouped selection of invoices that show how overdue a particular amount is.

Time buckets are an important part of a statement of account because they help businesses keep track of which invoices are the most overdue and prioritize accordingly.

Including time buckets in your statement of account can be helpful for customers, too - it makes it easy for them to see how much they owe and when each invoice is due.

There are a few different ways that you can group your invoices into time buckets.

One common method is to group invoices by the number of days they're overdue: 0-30 days, 31-60 days, 61-90 days, and so on.

Another option is to group invoices by the date on which they were issued: invoices from the current month, invoices from the previous month, and so on.

Finally, you could also group invoices by the due date: all invoices due in the next week, all invoices due in the next two weeks, and so on.

Whichever method you choose, time buckets can be a helpful way to keep track of your accounts receivable - and help your customers stay on top of their payments.

What goes into a statement of account letter?

A statement of account letter typically includes:

• The name, address, and contact information of the company or individual who issued the invoice
• The date on which the invoice was issued
• A list of all items included in the invoice, along with their prices
• The total amount due
• The date by which payment is due
• Any late fees or interest that will be charged if payment is not received by the due date
• Contact information for someone at the company who can answer questions about the invoice.

If you're sending a statement of account to a customer who has already paid their bill, you can include a "Thank you for your payment" message above the signature line.

It's important to be polite but firm in a statement of account letter. You want to maintain a good relationship with your customer, but you also need to remind them that they owe you money.

Be sure to include all the relevant information so the customer can make their payment as quickly as possible.

It's worth reiterating that a statement of account is not the same as an invoice, despite the obvious similarities.

An invoice is a request for payment that includes all the necessary information about the product or service being billed.

A statement of account, on the other hand, is a summary of all transactions for a given period.

Save time by automating your account statements and letters

In the scramble to make the best use of a company's time and resources, sending regular and accurate statements of account can sometimes fall by the wayside.

But account statements are a fantastic tool for maintaining strong customer relationships, ensuring you are both on the same page about what is due, and ultimately helping you to reduce late payments and improve cash flow. 

The good news is that there are software options available to automate the process of sending out statements, freeing up valuable time and energy for other tasks.

Chaser offers a range of features to help with this, including personalisable customer statements or statements of accounts, as well as personalisable, automated payment reminder emails for both invoices that can all be sent according to your chosen schedule.  

You can set up a system that will save you time and keep your customers happy with just a few clicks.

Time is always money for any business, and using Chaser to automate your statement of account process is a sound investment.

Even better, with our fully customizable templates and the ability to include your business branding, you can add in a level of personalization that will give your business that extra edge.

Streamline your accounts receivables process with Chaser

Automated statements of account are far from the only thing Chaser can do for your business.

If you automate your accounts receivables process with Chaser, you'll also get:

Dedicated payment portals

Chaser includes personalized payment portals that make it easy for your customers to pay you.

Customers can log in and see a list of all the invoices they need to pay, and then pay them with just a few clicks.

You'll also get paid faster, as our system will automatically chase up any overdue invoices on your behalf according to the templates and schedules that you choose.

Time-saving and reporting

Chaser's reporting feature gives you instant insights into your business cash flow.

You can see which customers are paying on time, which invoices are overdue, and how much money is coming in each month.

This valuable information can help you make informed decisions about your business finances and ensure you are reaching your accounts receivables KPIs.

Automated payment reminders

Late payment of invoices is a huge problem for small businesses.

Chaser's automated payment reminders will help you get paid on time, every time.

You can customize the polite payment reminder emails to include your company branding, and set them to go out automatically at a frequency of your choice.

No more wasting time and valuable staff members chasing payments. With Chaser, you can get on with growing your business.

Built-in credit checking

Credit checking is a vital part of managing your business finances.

Chaser's built-in credit checking tool will give you peace of mind when taking on new clients, and help you avoid doing business with companies that are at risk of defaulting on payments.

You can run a credit check on any company in seconds, and make informed decisions about who you do business with.

With Chaser, you can also regularly conduct credit checks on your existing clients to monitor their financial health and identify early warning signs of payment difficulties.

Multi-channel payment reminders

As well as scheduled email reminders, Chaser can now send SMS invoice payment reminders to your clients' mobile phones.

SMS reminders are an effective way to prompt customers who may have forgotten or misplaced their invoices, and can help you get paid faster.

Payment plans

You can also set up automatic payment plans for customers who are struggling to pay their invoices in full and on time. This can let customers split larger invoices into smaller easy-to-manage installments 

It can also help to cement good customer relationships by showing that you are willing to be flexible and help those customers who are struggling to pay their bills.

Keep your customers up to date and get paid faster with Chaser

Sending out a regular statement of account email is a great way to keep your customers informed of what they owe, and can help you get paid faster. With Chaser, you can automate your statement of account emails and save yourself and your team valuable time. By automating these processes, businesses have been able to save over 15 hours per week on previously automated processes. 

Chaser is the leading debt chasing and collections software, used by thousands of businesses around the world to streamline their debtor management.

Try Chaser free for 14 days and see how we can help you get paid faster.