Statement of Account: Free Template, Example and How to Send One

A statement of account is a summary you send a customer listing every invoice, payment and credit on their account over a period, and the balance they still owe. It isn't a tax invoice and doesn't replace one; it's a reminder and a reconciliation tool. Most Australian businesses send statements monthly, a few days after month end, to customers who buy on credit, and they're one of the cheapest ways to catch an unpaid invoice before it turns into a debt problem.

What is a statement of account?

A statement of account, also called a customer statement or account statement, shows the running position between you and one customer. It lists the opening balance, each invoice you issued, each payment received and any credit notes, and finishes with the closing balance owed. It is sent to a customer you've extended credit to, typically one who receives more than one invoice a month.

A statement does three jobs at once. It reminds the customer what is due, it lets their accounts team reconcile your figures against theirs, and it shows ageing, so a 60-day-old invoice can't hide behind this month's work.

Statement vs invoice: what's the difference?

An invoice asks for payment for a specific sale; a statement summarises all the invoices and payments on an account. In Australia that distinction matters for GST, because a statement of account is not a tax invoice. Your customer can't claim GST credits from a statement, only from the tax invoices it lists.

The ATO's tax invoice rules set out what a tax invoice must show, and our guide to tax invoice requirements in Australia walks through them. Because a statement never creates a new debt, never put a new charge on it that hasn't been invoiced first.

What should a statement of account include?

A statement needs enough detail for the customer to match every line to their own records and to see at a glance what is overdue. Keep it to one page where you can.

• The heading "Statement of Account" and the statement date.
• The period covered, such as 1 to 31 October 2026.
• Your business name, ABN and contact details.
• The customer's name, address and account number if you use one.
• Opening balance brought forward from the last statement.
• Each transaction with date, reference (invoice, payment or credit note number), description, and amount.
• Closing balance, the total now owed.
• An ageing summary: how much is current, 1 to 30 days, 31 to 60 days and over 60 days overdue.
• Payment details: BSB, account number, PayID and the reference to use.
• Your payment terms, repeated so the customer sees them again.

Open-item vs balance-forward statements: which should you use?

Use an open-item statement if your customers pay invoice by invoice, which is how most Australian small businesses work. Use balance-forward if customers pay a running total each month, as many trade supply accounts do. The difference is how unpaid amounts are shown.

• Open-item statement: lists only invoices that are still unpaid, whatever their age, and drops each one once it's fully paid. It's easy for the customer to see which invoices to pay.
• Balance-forward statement: starts with the previous closing balance, then lists only this period's invoices, payments and credits. It's shorter, but the customer has to look at older statements to see what made up the opening balance.
• Activity statement: a full list of every transaction in a date range, paid or not. Useful when a customer asks for a reconciliation or you're sorting out a dispute.

Not to be confused with the ATO's "business activity statement" (BAS), which is your GST return, not something you send customers.

Statement of account example in AUD

Here's a balance-forward statement for one month, so you can see how each line flows into the closing balance. All amounts include GST.

STATEMENT OF ACCOUNT · Brightside Electrical, ABN 12 345 678 901 · Statement date 3 November 2026
Customer: Mapleton Property Group Pty Ltd · Account MPG-07 · Period 1 to 31 October 2026 · Terms: 14 days

How the ageing works: INV-0331 (due 6 November) is current. INV-0322 less its $132 credit, $2,838, was due 23 October, so it's 1 to 30 days overdue. The $1,320 left from the opening balance is from INV-0309, issued in September and due 28 September, so it's now 31 to 60 days overdue. That's the line to follow up first. The GST in this month's new charges is $4,059 ÷ 11 = $369, but the customer claims it from INV-0322 and INV-0331, not from the statement.

Statement of account template you can copy

Paste this into a document or spreadsheet and fill in the brackets. Add or remove transaction lines as needed.

How to send a statement of account

Send statements on the same day each month, by email as a PDF, addressed to whoever pays your invoices rather than whoever ordered the work. A regular rhythm trains the customer to expect it and lines up with their own month-end payment run. Most businesses send between the 1st and 5th of the month.

1. Close off the month. Record every payment received to the last day of the month. Our guide to bank reconciliation covers the check.
2. Run your aged receivables report to see which customers have balances, and send statements only to accounts with something owing or recent activity. See our explainer on the aged receivables report.
3. Check each statement against the customer's invoices and credit notes before it goes out. One wrong line gives a slow payer a reason to wait.
4. Email it with a short note: "Your October statement is attached. The balance of $5,247.00 includes $1,320.00 now over 30 days. Please let us know if anything doesn't match."
5. Follow up overdue balances a week later by phone, starting with the oldest.

If you're producing statements by hand from a spreadsheet, it's easy to miss a payment. Tools that track who owes what help here. InvoiceSonic, for example, sends automatic payment reminders at 7, 14 and 30 days after each due date, so the statement becomes a monthly summary rather than your only follow-up.

Where does a statement fit before a letter of demand?

A statement is an early, neutral reminder; a letter of demand is the formal last step. If a balance keeps appearing in the 31 to 60 day column across two statements, stop relying on statements and switch to direct follow-up: a phone call, then a final notice, then a demand.

Statements also help if a debt does escalate. A run of monthly statements shows the customer was told the balance repeatedly and never disputed it, which is useful evidence in a tribunal. Our guides to chasing overdue invoices and the letter of demand template cover the next steps.

Common statement of account mistakes

• Treating the statement as an invoice. Customers can't claim GST from it, so they still need every tax invoice.
• Adding new charges on the statement, such as late fees that were never invoiced.
• Sending it to the wrong person. Accounts payable, not the site manager.
• Leaving payments off because they arrived on the last day of the month. Reconcile first.
• No ageing. Without it, an old invoice looks the same as this week's.

This article is general information, not financial or tax advice. For guidance specific to your business, see business.gov.au and the ATO, or speak to your accountant.

Frequently asked questions