Statement of Account

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What’s a statement of account and when do you need it?

Statement of accounts are used by suppliers with invoices that have as yet to be paid, to start the process of chasing payment informally. It is part of a standard credit control process.

You would use this template to set out your standard or contractual payment terms. Your wording should track whatever your contracted payment terms (i.e. what your terms and conditions of business) say and they should be accurate. For example, your terms and conditions might provide for payment 60 days after invoices have been sent or 30 days from the end of a month.

These statements are also useful to notify customers of the amounts that are owed, in case they have overlooked or not received any of your invoices.

It’s up to your discretion when to start sending your customers a statement of account, but it’s acceptable to do so even before the invoices are overdue, as they have no legally binding status.

This template can be used by all types of business. It can be sent to a late paying business or to a consumer.

Either way, if the amounts owed are overdue, you must try and resolve the situation as quickly and as amicably as possible. Be prompt when you’re chasing late payments and try and agree on how and when payment will be provided to you.