What Is a Customer Statement & What Does It Include?

What Is a Customer Statement?

A customer statement serves as a comprehensive financial document issued by a business to its customers. This document provides a detailed summary of all financial activity within a customer’s account over a defined period. Its purpose is to offer clear, transparent communication regarding transactions, payments, and balances between the business and its clients.

What Information is Included

Customer statements identify both the account holder and the issuing business. They include the customer’s name and address, the business’s name, contact information, and sometimes an account number. The statement also indicates its generation date and the period it covers, like a calendar month.

It presents an opening balance, reflecting the amount owed or credited from the previous period. A detailed list of all transactions within the current period is provided. This includes the date, a description of the activity (such as purchases, returns, or payments), and the amount for each entry.

The document summarizes any charges or fees applied during the period. It concludes with the closing balance, representing the total amount due or credited at the end of the period. If payment is expected, a due date is often included.

Why Customer Statements are Issued

Businesses issue customer statements to provide an overview of financial activity. They help customers understand their account status and review transactions within a specific timeframe.

Statements also remind customers of outstanding balances or upcoming payment obligations, ensuring timely remittances. They facilitate reconciliation for both the business and the customer, allowing cross-referencing of records against official documentation. This helps identify and resolve discrepancies. Statements act as an official record of transactions and account status, fostering transparency and clarity.

Customer Statements vs. Invoices

A customer statement differs from an invoice, as each serves a distinct purpose. An invoice is a request for payment for goods or services provided in a single transaction or defined set of transactions. It details items purchased, quantities, and prices, acting as a direct demand for payment for a particular sale.

In contrast, a customer statement provides an overarching summary of financial activity within an account over a period. This can include multiple invoices, payments, credits, or adjustments. A statement consolidates this information to present a total outstanding balance, serving as an informational summary rather than a direct request for payment for a single transaction.

How to Use Your Customer Statement

Upon receiving your customer statement, review it for accuracy. Compare listed transactions and balances against your personal records, such as receipts or payment confirmations. This helps identify discrepancies or unrecognized charges that may require clarification.

Locate the amount owed and any payment due date to ensure timely remittance. If you identify errors or have questions, contact the business’s customer service department. Retaining statements is also prudent for personal financial record-keeping and potential tax purposes, especially for documenting expenses or payments.