A statement of account summarises all the transactions - invoices raised, credit notes issued, payments received - between a business and a specific customer or supplier over a period, ending in the balance still owed.
What it means
It's a reconciliation tool rather than a new charge: it doesn't create any new liability, it just presents the running total of amounts already invoiced and paid, so both parties can confirm they agree on the outstanding balance.
Where it fits in
Statements are typically sent monthly to customers with outstanding balances, and a persistently overdue balance shown on a statement is often what precedes a formal letter of demand.
Key rules
- Summarises invoices, credit notes and payments over a period.
- Ends in the outstanding balance owed.
- Does not itself create a new charge or liability.
- Overdue balances shown here often precede a letter of demand.
