How to Make a Billing Statement Step-by-Step

A billing statement summarizes financial transactions between a business and its client over a specified period. It clearly communicates charges, payments, and the remaining balance. This document helps clients understand their spending and due dates, and assists businesses in managing accounts receivable.

Essential Information for a Billing Statement

A billing statement must contain specific data points for clarity and accuracy. It begins with identifying information for both the sender and recipient. Your business name, address, phone, and email should be displayed, along with the client’s name, address, and contact details.

The statement requires specific identifying details, including the statement date, a unique statement number, and the precise billing period. A detailed transaction summary follows. Each service or product sold during the billing period should be itemized, including the date, description, quantity or hours, unit price or rate, and the calculated line item total.

A financial summary consolidates all charges and payments. This section presents the subtotal of all items, any applicable taxes, and any discounts or credits applied. For recurring statements, any previous balance from the prior period is included, leading to the total amount due.

Clear payment terms are included. This covers the due date for payment and accepted payment methods like check, bank transfer, or credit card details. Instructions for online payment portals should also be listed. If applicable, late payment policies or interest charges should be specified, such as “Net 30” terms or a monthly interest rate. A designated space for notes or personalized messages can provide additional information.

Organizing Your Billing Statement

The arrangement of information on a billing statement impacts its readability and professionalism. Clear, descriptive headings, such as “Billing Statement” or “Account Summary,” guide the reader. This helps clients quickly locate specific information and reduces inquiries.

A logical flow of information is important, typically beginning with sender and recipient details at the top. This is followed by the itemized list of transactions, then the financial summary and payment instructions. Consistency in formatting, including fonts and text sizes, enhances the statement’s professional appearance and makes it easier to digest.

Ample white space prevents clutter and improves readability. Including your business logo and consistent branding reinforces your professional image. Highlighting the total amount due and the payment due date ensures these figures are immediately visible to the client.

Creating and Sending Your Billing Statement

Several methods exist for generating billing statements, from manual approaches to automated software solutions. For infrequent billing, manual creation using word processors or spreadsheets like Microsoft Word or Excel can be sufficient. These programs allow for basic template creation, though calculations may need to be entered manually.

Pre-designed templates, often available within word processing or spreadsheet software, can streamline the process by providing a ready-made structure for inputting details. For higher volumes or recurring billing, dedicated accounting software or invoicing tools offer greater efficiency. Programs like QuickBooks, FreshBooks, Wave, Xero, or ZipBooks automate statement generation, track payments, and manage recurring billing cycles. These systems reduce manual effort and potential errors.

Billing statements can be delivered through various channels. Emailing the statement as a PDF attachment is a common and efficient method, with a clear subject line and concise body text. For clients who prefer physical copies, statements can be printed and sent via traditional mail. Many modern accounting software solutions offer client portals or online systems. These secure portals allow clients to access their statements, review transaction history, and make payments, enhancing convenience.