How to use the statement of account generator
- Enter the statement date and the opening balance, which is what the customer owed at the start of the period. Use a minus sign if they had a credit.
- Add each event in order: the date, the type (invoice, other charge, payment or credit note), a reference and the amount without a sign.
- Fill in your business and the customer. The type decides whether an amount adds to or subtracts from the balance.
- Read the amount due in the box above the preview, then press Download PDF or Print. Copy summary puts a short text on your clipboard.
A simple month
A customer owed $100.00 at the start of the month. You issued invoice INV-101 for $50.00, so the balance rose to $150.00. They then paid $30.00 by check, which brought the balance down to $120.00.
The statement shows an opening balance of $100.00, charges of $50.00, payments and credits of $30.00 and an amount due of $120.00. If a credit note for $75.00 is entered next, the balance drops to $45.00. A balance that falls below zero is shown in parentheses and labeled a credit balance in the customer's favor.
What a statement of account shows
A statement lists everything that changed a customer's balance over a period and ends with the amount owed. Unlike an invoice, which bills one sale, a statement summarizes the relationship: the balance brought forward, each new charge, each payment and credit, and what remains. It is often sent monthly so the customer can check their records and spot a missing payment.
Charges and payments are entered in the order they happened, and the running balance after each entry is shown. To issue the charges themselves, use the invoice generator, and to record a reduction, the credit note generator.
How the balance is worked out
The closing balance is the opening balance plus invoices and other charges minus payments and credit notes. Amounts are held in whole cents, so the running balance never drifts. Each amount is entered without a sign, and its type decides the direction, which prevents the common mistake of entering a payment as a positive number.
Late fees, interest and due dates are not calculated. If you apply a late fee, add it as an other charge. Aging buckets such as current and 30 days past due are also not shown. To keep a list of bills to pay, see the bill payment tracker.
Privacy
The statement is created in your browser and nothing is uploaded. If you choose to remember your entries, they are kept in this browser only.
Assumptions and limits
- All amounts are in dollars and cents and are added exactly in whole cents.
- Entries are listed in the order you enter them. The tool does not sort by date.
- Interest, late fees and aging are not calculated.
- Sample names, dates and amounts are examples to replace.
Frequently asked questions
What is the difference between a statement and an invoice?
An invoice bills for one sale or period of work. A statement shows the whole account: the opening balance, every charge, payment and credit, and what is owed now.
How often should I send a statement?
Many businesses send one each month to customers with activity or an open balance. Pick a rhythm that suits your customers and your records.
What does a balance in parentheses mean?
It means the customer has a credit, so you owe them rather than the other way round. The statement labels it a credit balance in the customer's favor.
How do I add a late fee?
Add an entry of type other charge with a reference such as late fee and the amount you decided on. The tool does not calculate fees for you.