Billing template

What is a billing statement?

A billing statement, also known as an account statement, is a document that details various charges over a set period of time. 

This can be used to show a client how much money they have been billed. Business owners might use a billing statement template to draft this document in order to achieve a more professional look and to keep track of what has and hasn’t been paid with each customer.

How does a billing statement work?

Billing statements are an essential piece of communication, detailing payments to the business and providing the customer with the minimum monthly payment that they must pay to keep their account current.

 It also includes other important information, such as:

• The transactions that occurred during the month
• The total interest charged for the month
• Any fees added to the balance by the credit issuer
• Shows the closing statement balance, which can be paid off entirely by the borrower

A billing statement is a crucial but straightforward report that you can use to help your customers stay organized and understand what they owe you.

It’s a valuable tool for you to be able to see what you’re billing your client at a glance, as well as the payments they’ve already made to you, all condensed into a single report. 

One of the most vital aspects of being a business owner is invoice tracking and customer account management. A billing statement allows you to remind your customers about any outstanding payments and their due date and help you and the customer keep a comprehensive record of their account activity.

It’s important to remember that a billing statement isn’t the same as the statement you receive from your credit card company. What your credit card company sends is more like a combined statement and invoice in one.

You should be sending your invoices and statements separately, as they serve different functions.

Example of billing statement template

The following is what a billing statement template might look like. Download BILL’s free billing statement template and start customizing today.

Billing statement vs. invoice

Billing statements focus on summarizing financial activity over a period, while invoices are specific requests for payment for goods or services provided in a one-time transaction or project.

As a general rule, you’ll be issuing your invoices right before or after the sale or service is completed, whereas a statement can be issued regularly or on request. 

Invoices are far more detailed, itemizing the product or service, shipping fees (if applicable), and sales taxes. A statement will only list transactions and payments, as opposed to the item description.

What’s the difference between an invoice and a billing statement? 

Some key differences between a billing statement and an invoice include:

• Timing: Billing statements are usually sent periodically, such as monthly, while invoices are typically issued after a sale or completion of a service.
• Recurring vs. one-time: Billing statements are used for recurring or ongoing charges, whereas invoices are used for one-time transactions or specific projects.
• Summary vs. detail: Billing statements provide a summary of activity within a billing period, including previous balances, new charges, and payments applied. Invoices, on the other hand, provide detailed information about individual products or services rendered.
• Payment request: Invoices explicitly request payment for goods or services provided, whereas billing statements often serve as a reminder of the outstanding balance and the due date for payment.
• Date of billing cycle: This seems obvious, but your client should easily see the dates of the billing cycle. Whether you send the billing statement weekly, biweekly, or monthly, it should be immediately apparent what cycle of invoices is in front of them. This can also help you with your own record-keeping and filing. You might also find it helpful to include a statement number, not to be confused with the invoice number.
• Balance due and balance owed: Having the current or outstanding balance appear on the billing statement is crucial, particularly if the client has neglected to pay you on time. This particular field is a not-so-subtle reminder that the customer owes you money. The rolling balance at the bottom of the billing statement will tell the client that they haven’t paid you in a certain amount of days, something you can point out to them if you need to follow up on your billing statement with a phone call. 
• Invoice numbers and dates: Invoice dates help you ensure the invoices that appear on the statement fall within the selected billing cycle, while details like an invoice or statement number are primarily for your benefit. These will help you keep track of your invoices, and being able to look up an invoice number makes it easier to find in the event of a query.

Why businesses should use a billing statement template

Businesses should use a billing statement template for several reasons:

• Consistency: A billing statement template establishes a professional and reliable image for the business, as customers become familiar with the structure and design of the statements.
• Time-saving: Once the template is set up with the necessary sections and formatting, it can be easily populated with the relevant transaction details for each billing period.
• Branding: A customized billing statement template allows businesses to incorporate their branding elements such as logos, colors, fonts, and contact information. This branding reinforces the business's identity and creates a professional and cohesive image for customers. It also helps in building brand recognition and trust.
• Customer experience: A billing statement template provides a structured and easy-to-read format, making it simpler for customers to understand the charges, payments, and other financial information.

How to prepare a billing statement 

Here’s how to do a billing statement:

1. Start by entering your company's name at the top of the template. 

2. Include the customer's name, address, and contact information just below your company's details.

3/ Enter the statement date on which the billing statement is generated. This denotes the period covered by the statement.

4. Assign a unique invoice or statement number for identification purposes as well as a customer ID.

5. In the remittance box section, provide the following information: 

• Account name
• Account number
• Bank name
• Bank address
• Routing/ABA number
• Reference/Invoice number
• Amount paid

6. The account summary section will be used to note the balance due and payment due date.

7. In the account activity section, fill out the date, type, description for each expense.

8. For each line-item include any payment the customer has already made, how much the expense was and what the remaining balance is. 

9. Include any additional notes or instructions for the customer, such as contact information for inquiries or a thank-you message. Provide directions on where customers can send the payment and provide banking information to your bank if you’re providing the option of ACH payments or wire payments.

10. Review and send.

FAQ

What information does a billing statement include?

Specific layout and information included on billing statements may vary slightly between companies and industries, but most billing statement typically include the following:

• Billing period
• Statement date
• Account information
• Client’s previous balance
• Summary of charges
• Invoice number and date
• Payments received
• Balance due and balance owed
• Payment due date
• Customer service contact information

How often are billing statements sent?

The frequency of billing statements issued depends on the specific company. While there is no universal rule, most companies typically issue billing statements on a monthly basis at the end of each billing cycle.