Preparing and Sending a Customer Account Statement

Set the statement date - typically the last working day of the month or the day you are running the process.

Retrieve all open invoices for the customer: references, amounts, issue dates, due dates, and current payment status.

Identify any payments or credit notes on the account not yet allocated to a specific invoice. Resolve these before sending the statement.

Note any invoices currently in dispute and handle them separately. Do not include disputed amounts in the standard statement without a clear notation.

Compile each open invoice with reference, dates, amount, payments received, and outstanding balance. Include a total due and an aging summary (current, 1-30, 31-60, 60+ days overdue).

Verify the statement is going to the person who processes payments - frequently a different person from the order contact.

Send with a subject line referencing the account name and total outstanding. Include payment details and an invitation to query any item.

Log the send date. If no response and any invoice is more than 14 days overdue, follow up by phone within 3 business days.

Customers claim they never received an invoice and refuse to pay until a copy is resent, delaying settlement on accounts that have been open for 30 to 60 days or longer.

Statements are sent to the person who placed the order rather than the accounts payable contact, meaning they never reach the team that processes payments.

Unapplied payments or credit notes create a misleading outstanding balance on the statement, prompting disputes rather than payment.

How often should I send customer account statements?

Monthly is standard for most project-based businesses. Accounts with consistently overdue balances or customers on large credit limits benefit from statements at the end of each month regardless of whether balances are current. For accounts that are never overdue, quarterly statements are acceptable - though monthly is still preferable for cash flow visibility.

What should I do if a customer disputes an item on the statement?

Handle the disputed item directly and separately - do not let a single disputed invoice block payment on all other open invoices on the account. Acknowledge the dispute in writing, investigate, and send a corrected statement or credit note once resolved. Ask the customer to pay all undisputed items while the dispute is being handled.