What Is a Statement of Account?

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Companies that engage in accounts payable (A/P) and accounts receivable (A/R) transactions will usually require a statement of account for properly recording these financial transactions. These statements provide important information for companies to prove the accuracy and timeliness of business activity.

  1. Time Period

    • Account statements will cover a calendar time period, usually spanning a month. A 30- day statement will cover the previous 30 days and may cover days between two calendar months, such as June 15 to July 15.

    Frequency

    • While most account statements are sent to clients monthly, some companies, like utilities or garbage and sewer services, may occur quarterly. Vendors may allow businesses to choose monthly or quarterly statements depending on their accounting cycle.

    Information

    • Most statements include the following information: client name and address, account number, services rendered, and time and date when the services were completed. Cost of services and late fees or interest are also included.

    Aging

    • If a company has not paid their bill in full, an aging will be printed on the statement to remind the business of previously-owed amounts. These amounts are grouped in 30-day periods, such as current, 30 to 60 days old, and 60 to 90 days old.

    Uses

    • Companies use account statement to balance their A/P schedules and ensure that all invoices are paid correctly to each vendor. Companies may not pay individual invoices without a statement of account depending on their accounting policies.

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