Dictionary / Statement of Account
What does Statement of Account mean in accounting?
Quick definition
GeneralSummary of transactions between seller and buyer, reporting the unpaid balance at that time period. This term guides how bookkeepers record, classify, and explain related transactions in routine financial reporting.
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Examples
Month-end list of open invoices
You run an HVAC shop. Through March you invoiced a commercial-property client $1,280 on March 4 for a rooftop repair, $640 on March 18 for filters, and $2,190 on March 27 for a compressor, and those three invoices already sit on accounts receivable for $4,110. On April 1 you email that client a statement of account that lists those open items and the $4,110 unpaid balance. In QuickBooks Online or Xero, create a customer statement; nothing new posts to sales or AR. The statement is the recap, not a fourth invoice.
Pay the statement, do not bill it again
You run a coffee roastery. On June 3 a coffee-shop client ACH $2,860, matching the May 31 statement you sent: Invoice 441 for $1,640 on May 8 and Invoice 458 for $1,220 on May 22. Do not create a new $2,860 invoice titled May statement, because that would raise sales and AR a second time. In QuickBooks Online use Receive payment, or in Xero apply a payment, and allocate the $2,860 to those two invoices so checking rises, AR falls, and income does not change. The statement told them what was open; the payment clears those invoices.
Why it matters
A statement of account is a customer or vendor recap of open invoices and the unpaid balance at that date. It is not a new invoice, and it is not an income statement or balance sheet. You will send or receive one most months if you bill on credit or vendors send a month-end list. Ignore it and open items stay uncollected or unmatched; enter the total as another invoice and accounts receivable or accounts payable jumps twice, so use the statement to collect or reconcile and post only the invoices and payments that change the balance.
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What is Statement of Account in bookkeeping?
Summary of transactions between seller and buyer, reporting the unpaid balance at that time period.
When should I use Statement of Account?
Use Statement of Account when the transaction facts match its definition and you need the ledger and financial statements to reflect the correct account and period.
What is a common mistake with Statement of Account?
Statement of Account is used for statement of account entries, while Sale Value covers a related but distinct bookkeeping purpose. Review both terms before posting unusual transactions. A common mistake is applying it by label only instead of checking the underlying transaction details.