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.
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:
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.
The following is what a billing statement template might look like. Download BILL’s free billing statement template and start customizing today.
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.
Some key differences between a billing statement and an invoice include:
Businesses should use a billing statement template for several reasons:
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:
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.
Specific layout and information included on billing statements may vary slightly between companies and industries, but most billing statement typically include the following:
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.