Statement of Account Format

Statement of account format

Generate it from your accounting software or FundRaksha Book, which keeps customer ledgers and ageing automatically from your invoices. Add the confirmation line at the bottom; it costs nothing and sometimes comes back signed.

STATEMENT OF ACCOUNT

From: [YOUR COMPANY NAME], [ADDRESS], GSTIN [YOUR GSTIN]
To:   [CUSTOMER NAME], [CUSTOMER ADDRESS], GSTIN [CUSTOMER GSTIN]
Customer code: [CODE]
Period: [FROM DATE] to [TO DATE]          Statement date: [DATE]
Agreed credit period: [CREDIT DAYS] days

Date        | Document        | Ref. No.       | Due date    | Debit (Rs.) | Credit (Rs.) | Balance (Rs.)
[FROM DATE] | Opening balance |                |             |             |              | [AMOUNT]
[DATE]      | Tax invoice     | [INVOICE NO.]  | [DUE DATE]  | [AMOUNT]    |              | [AMOUNT]
[DATE]      | Tax invoice     | [INVOICE NO.]  | [DUE DATE]  | [AMOUNT]    |              | [AMOUNT]
[DATE]      | Payment (NEFT)  | [UTR NO.]      |             |             | [AMOUNT]     | [AMOUNT]
[DATE]      | TDS             | [SECTION]      |             |             | [AMOUNT]     | [AMOUNT]
[DATE]      | Credit note     | [CN NO.]       |             |             | [AMOUNT]     | [AMOUNT]
[DATE]      | Debit note      | [DN NO.]       | [DUE DATE]  | [AMOUNT]    |              | [AMOUNT]
[TO DATE]   | Closing balance |                |             |             |              | [AMOUNT]

AGEING OF CLOSING BALANCE (by days past due date)
Not yet due  | 1-30 days  | 31-60 days | 61-90 days | Over 90 days | Total
Rs. [AMOUNT] | Rs. [AMOUNT]| Rs. [AMOUNT]| Rs. [AMOUNT]| Rs. [AMOUNT] | Rs. [AMOUNT]

Amount overdue as on [DATE]: Rs. [OVERDUE AMOUNT]. Please arrange payment by [DATE].
Bank details: [ACCOUNT NAME], [BANK], A/c [ACCOUNT NO.], IFSC [IFSC]

If any entry does not agree with your books, please let us know within [7] days with details. Otherwise kindly confirm the balance below and return a copy.

For [YOUR COMPANY NAME]
[NAME], Accounts | [PHONE] | [EMAIL]

------------------------------------------------------------
We confirm the closing balance of Rs. [AMOUNT] payable by us as on [TO DATE].
For [CUSTOMER NAME]   Signature: ____________   Name / designation: ____________   Date: ______   Seal:

How to fill it

1. Start from the last confirmed or agreed balance, so the opening figure is not in question.
2. Show every invoice with its number, date and due date (invoice date plus credit days).
3. Show receipts with UTR or cheque number, TDS separately, and every credit and debit note.
4. Calculate the ageing from the due date, not the invoice date, so the customer sees what is actually overdue.
5. State the overdue amount and a specific payment date. A statement with no request rarely produces payment.
6. Send it monthly on a fixed date, by email to accounts with a copy to the purchase contact.

Common mistakes

• Sending statements only when payment is already months late, so the first one reads like a complaint.
• Ageing by invoice date: a 30-day-credit invoice looks 'overdue' on day one and the customer stops reading.
• Not showing unapplied payments or on-account receipts, which creates disputes that delay everything.
• Assuming that a statement the customer did not object to is an acknowledgement. It is not, unless they sign or confirm it.

How statements of account support recovery

Regular statements do three jobs. First, they collect: many late payments are simply invoices the customer misplaced. Second, they surface disputes early, while documents are fresh. Third, a statement the customer signs or confirms by email becomes a written acknowledgement under Section 18 of the Limitation Act, restarting the 3-year period. Without that, limitation for goods sold usually runs from each invoice's due date. For a genuinely mutual, open and current account with reciprocal demands, Article 1 of the Limitation Act runs time from the close of the year in which the last item is entered; courts have held that an ordinary supplier-buyer account is usually not 'mutual' in this sense, so do not rely on it. See the statement of account and ageing report entries.

Pair monthly statements with FundRaksha Collect, which sends reminders automatically and charges a 1% success fee. For balances in the over-90-days column, a free consultation with FundRaksha will tell you whether it is time for a legal notice.