How to send customer statements

Why it matters

A statement reminds customers of every open invoice in one document. It catches lost invoices and unapplied payments. Many customers pay from the statement.

It also shows you early if their records differ from yours.

The steps

1. Pick a statement date. Month end is usual. Send on the first or second working day of the next month.
2. Apply all payments and credits first. An unapplied payment makes a good customer look late. Match them before you run statements.
3. Create the statement. Show the opening balance, each invoice and credit note with its date and number, each payment and the closing balance.
4. Add the ageing. Show the closing balance in current, 1 to 30, 31 to 60 and over 60 days.
5. Add payment details. Include your bank details, your payment terms and a contact for questions.
6. Skip nil balances. Do not send a statement to a customer who owes nothing, unless they asked for one.
7. Send and follow up. Email the statement. Phone anyone with a balance over 30 days.
8. Deal with differences. If a customer says they paid or never got an invoice, fix the record and resend.

Worked example

Example Plumbing Supplies Pty Ltd sends a statement to Example Builders for October.

Item	Amount
Opening balance on 1 October	A$5,500.00
Invoice INV-1101 on 8 October	A$3,300.00
Invoice INV-1118 on 22 October	A$2,200.00
Payment on 15 October	-A$5,500.00
Closing balance on 31 October	A$5,500.00

The closing balance is 5,500 + 3,300 + 2,200 - 5,500 = A$5,500. Both open invoices are inside 30-day terms, so nothing is overdue.

Common mistakes

• Sending statements before payments are applied.
• Sending a statement with no ageing.
• Leaving off the bank details.
• Not following up on the older balances.

Next step

Use the Customer statement generator first. Then see the supplier statements guide.