What Is a Statement of Account?

Companies that engage in accounts payable and accounts receivable transactions will usually require a statement of account for properly recording them. These statements provide important information with which companies prove the accuracy and timeliness of business activity.

  1. Time Period

    • Account statements cover a calendar time period, usually spanning a month. A 30-day statement, however, covers the previous 30 days, some of which may fall into two calendar months -- for example, 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 send them out quarterly. Vendors may allow businesses to choose monthly or quarterly statements depending on their accounting cycle.

    Information

    • Most statements include the customer's name, address and account number; the services rendered or product sold; and time and date of purchase or service. Cost of services and late fees or interest are also included.

    Aging

    • If a company has not paid its 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 statements 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.

Related Searches

References

Resources

  • Photo Credit Mateusz Zagorski/iStock/Getty Images

You May Also Like

Related Ads

Check It Out

Make-at-Home Vs. Takeout: Pumpkin Pie