Every Australian business that trades on credit eventually needs a clear picture of what a customer still owes. A statement of account delivers that picture in one tidy document. It lists every invoice issued, payment received, credit granted and adjustment made for a customer during a chosen period then presents the running balance so both parties can see exactly where they stand. In this guide you will learn what a statement of account is, how to read one, how to prepare one from scratch or with accounting software and how to download a free template formatted for Australian dollars and GST. A worked example shows the running balance in action and the article closes with a plain-English FAQ reviewed against current Australian laws and record-keeping guidance.
What is a statement of account
A statement of account sometimes called a customer statement or account statement is a periodic summary that reconciles every transaction between a supplier and a customer. Unlike a single invoice that requests payment for one sale a statement of account usually covers a month or another agreed period and can include many invoices and payments. The opening balance carries forward any amount still owing from earlier periods then new charges and credits flow through to a closing balance. When the closing balance is positive the customer owes the supplier; when it is negative the account is in credit.
Businesses send statements of account for several practical reasons. The document encourages prompt payment because it groups all outstanding invoices and highlights the total due. It helps both parties reconcile their books and spot errors before they snowball into disputes. It also satisfies the record-keeping obligation in section 286 of the Corporations Act 2001 which requires companies to keep records that explain transactions and financial position. While not every Australian business must send a statement its routine use supports healthy cash flow, transparent credit management and smoother debtor follow-up.
Parts of a statement of account
Every field on the statement carries a purpose that aids identification, reconciliation and payment processing. The table below shows a typical layout used across Australian industries. You can copy the headings into a spreadsheet or adapt them in your accounting software.
| Field | Purpose |
|---|---|
| Business name and contact details | Shows who issued the statement so the customer can confirm authenticity |
| Australian Business Number (ABN) | Identifies the supplier for GST and tax record purposes |
| Customer name and account reference | Identifies the party charged and links the statement to internal records |
| Statement date | Indicates when the document was generated |
| Statement period | Defines the range of transactions shown, for example one calendar month |
| Opening balance | Carries forward any amount owed or credited before the period began |
| Transaction date | Records when each invoice, payment or credit took place |
| Reference number | Links the line to a specific invoice, receipt, credit note or payment |
| Description | Provides plain wording that explains the transaction |
| Debit amount | Adds to the balance, usually for invoices or fees |
| Credit amount | Deducts from the balance, usually for payments or credit notes |
| Running balance | Shows the account position after each line is applied |
| Closing balance | States the total still payable or the credit available at the end of the period |
| Due date | Alerts the customer to the payment deadline for the closing balance |
| Payment instructions | Explains how to pay and which reference to quote |
Including every field above is best practice because it minimises follow-up questions and potential disputes. If your statement also functions as a remittance request, make sure bank details or card payment links are obvious and double checked for accuracy.
Worked example of a statement of account
The fictional flooring supplier Timber Trend Pty Ltd sends the following monthly statement to its customer Coastal Renovations for July 2026. All figures include GST where relevant.
| Date | Reference | Description | Debit | Credit | Balance |
|---|---|---|---|---|---|
| 1 Jul 2026 | Opening balance | 0.00 | |||
| 3 Jul 2026 | INV-8841 | Engineered oak planks 50 m2 | 4,400.00 | 4,400.00 | |
| 10 Jul 2026 | PAY-523 | Payment received EFT | 2,200.00 | 2,200.00 | |
| 15 Jul 2026 | INV-8897 | T-bar trims and skirting | 660.00 | 2,860.00 | |
| 22 Jul 2026 | CN-107 | Credit note for damaged planks | 330.00 | 2,530.00 | |
| 31 Jul 2026 | Closing balance | 2,530.00 |
The opening balance is zero because nothing was owing at the start of the month. Two invoices added debits, one payment reduced the balance and one credit note further reduced it. The closing balance of two thousand five hundred and thirty dollars is due on the date stated in the payment terms, usually fifteen or thirty days after the statement date.
How to read a statement of account
A customer who receives the statement should start by confirming the business name, ABN and customer account reference to ensure the document applies to their organisation. Next they verify the statement period so they know which transactions should be present. The opening balance then gets cross-checked against the previous month’s closing balance or the customer’s own ledger. Each invoice reference and amount is matched with the original tax invoice on file while each payment or credit is compared with bank statements or remittance advices already sent. After working through the list the reader confirms that the calculated closing balance matches the customer’s own books. Any variance suggests a missing invoice, a payment that was not allocated or an incorrect amount in either party’s records. Identifying discrepancies early avoids the frustration of blame shifting once an invoice falls overdue.
Statement of account compared with other documents
A statement can feel similar to several other accounting documents yet each serves a different function. The first comparison many readers make is between a statement and an invoice. The table below highlights the main distinctions.
| Feature | Statement of account | Invoice |
|---|---|---|
| Main purpose | Summarises multiple transactions and shows the overall balance | Requests payment for a single sale or job |
| Coverage | Often monthly or another set period | One invoice relates to one sale event |
| Shows payments already made | Yes because it carries a running balance | No, only the charge for the single transaction |
| Satisfies GST tax invoice rules | No because it is a summary | Yes if it meets the Australian Taxation Office criteria |
| When issued | Regular schedule or on request | At the time goods or services are supplied |
Other documents also appear in the payments workflow. A receipt confirms a payment has cleared and is generally provided immediately after funds arrive. A bill is simply another word for an invoice though some industries treat a bill from the purchaser’s perspective. A remittance advice is sent by the customer to the supplier to explain which invoices a lump payment covers. The statement of account sits apart because it collects all this information in a single dashboard for each customer.
When should an Australian business send a statement of account
Monthly issue remains the most common rhythm, especially for trade customers on account terms of thirty days. Businesses often send an interim statement when an overdue balance continues beyond the first reminder. Another common trigger arises when a customer queries the balance or claims to have already paid an invoice. Providing a full statement promotes transparency and quick error correction. Some firms also send a statement at the end of the financial year so customers have a clear reconciliation ready for their own accounting close.
How to create a statement of account
You can prepare a statement manually in a spreadsheet or generate one through accounting software like Xero, MYOB or QuickBooks Online. Select the customer, choose the statement period then let the system pull all approved invoices, recorded payments and credit notes into the layout. Review every line for accuracy before you press send. If you prefer to work in Excel or Google Sheets start by entering your business details and ABN at the top then fill out the table headings shown earlier. Enter the opening balance in the balance column on the first data row. For each subsequent row type the date, reference and description then place the amount in either the debit or credit column. The running balance formula adds debits and subtracts credits from the cell above. At the final row set a bold subtotal so it stands out. Convert the sheet to PDF for emailing so figures cannot be accidentally changed by the recipient.
Whether you use software or spreadsheets always cross-check the closing balance against your accounts receivable ledger. Reconcile bank deposits to payment lines, confirm GST treatment on each invoice and ensure credit notes match authorised returns or discounts. Accuracy here protects you from Australian Consumer Law penalties for misleading statements and from payment delays caused by customer distrust.
Download the free statement of account template
A link to download an editable Excel and Google Sheets template appears at the top and bottom of this article for convenience. The template contains the full transaction table, automated running balance formulas and a section for payment instructions written in Australian English. You may also export the sheet to a printable PDF if you still post paper statements. Update the header with your logo and ABN, adjust the GST wording to suit your tax-inclusive or exclusive pricing model then test the formulas with sample data before first use.
GST and Australian record keeping considerations
A statement of account does not replace the individual tax invoices required under GST law however it does help both parties reconcile those invoices. If your invoices show GST inclusive amounts you can leave the statement figures in GST inclusive form without breaking them out again. Some businesses prefer to add an extra column that splits the amount into GST and GST exclusive portions. Either approach is acceptable provided the method matches the underlying invoices and the treatment is consistent across all customers. Keep every original invoice, receipt and credit note for at least five years as required under the Taxation Administration Act and retain electronic backups in accordance with the Privacy Act when those records include personal information.
Sample email to send a statement of account
Below is wording you can paste into your email client before attaching the PDF. Replace the bracketed text with live details.
Subject Statement of account for [Customer] covering [Period]
Hello [First name]
Please find attached your statement showing all invoices, payments and credits recorded from [Start date] to [End date]. The current balance is [Amount] and payment falls due on [Due date] according to our agreed terms.
If you need copies of any individual tax invoice or believe a transaction is missing please let me know so we can resolve it promptly.
Thank you for your business and support.
Kind regards [Your name] [Position] [Business name] [Phone]
Pre dispatch checklist
Before clicking send run through the following mental checklist. Confirm the correct customer received the right statement period. Reconcile the opening balance to the last closing balance. Verify every invoice, payment and credit note matches your ledger. Check the GST treatment and that the closing balance equals the ledger total. Proofread customer details, due date and bank information. Finally export or print the statement to a read-only format such as PDF so no one can alter the figures after issue.
Frequently asked questions
What is a statement of account
A statement of account is a summary document that lists invoices, payments, credits and adjustments exchanged between a business and a customer for a given period then displays the balance outstanding.
Is a statement of account the same as an invoice
No. An invoice requests payment for one sale whereas a statement summarises all activity over time and shows the total still owing.
Is a statement of account a tax invoice
Usually not. A statement may recap tax invoices but it does not by itself satisfy the Australian Taxation Office requirements for claiming GST credits.
Does every business need to send statements of account
While no universal legal rule forces all businesses to send statements many choose to because it improves cash flow, reduces reconciliation errors and supports professional credit management.
Can a statement of account include GST
Yes. You may show GST inclusive totals or break out GST amounts provided the figures align with the original invoices and your method stays consistent.
How often should a statement be sent
Common schedules are monthly, fortnightly or on demand. The right frequency depends on transaction volume, credit terms and the customer relationship.
Can a statement show a credit balance
Yes. If payments or credits exceed charges the statement will display a negative or credit figure which can be refunded or applied to future invoices.
What is the difference between a customer statement and a supplier statement
A customer statement shows what your customer owes you. A supplier statement shows what you owe a supplier. The format is similar but the viewpoint changes.
Should overdue invoices appear on the statement
Yes. Outstanding invoices remain on every subsequent statement until paid. Clearly marking them with an overdue note helps prioritise collection.
Can a sole trader use this template
Absolutely. A sole trader can adapt the template in Excel or Google Sheets as long as the information remains accurate and original invoices and payment records are also kept.
The guidance in this article reflects Australian regulations and best practice as at the time of writing. Always confirm current requirements with your accountant or the Australian Taxation Office when circumstances change. With the example, template and advice above you are ready to issue clear professional statements of account that support timely payment and sound record keeping.
