Statement of Account vs Invoice: When to Send Each

Use the right document for the question

An invoice says what was supplied and what payment is requested. A credit note records a credit against a sale or customer account. A statement gathers the existing activity so both sides can see how the balance arose. The basic invoice purpose is set out in business.gov.au's invoicing guide.

Use the statement to answer "what do we still owe?" or "where did our payment go?" It summarises the existing account. If the customer asks for a tax invoice, locate the relevant issued document. Ask your registered BAS agent about a missing or incorrect document rather than relabelling the statement.

The tax invoice requirements guide covers that separate document task. Have a registered BAS agent check GST documentation for credits or changes rather than deciding it from the statement total.

Choose a balance snapshot or an activity statement

Send a list of unpaid invoices when the customer wants to schedule payment. An activity statement is more helpful when receipts and credits explain why the amount has changed.

MYOB's official help makes this distinction: its Invoice statement lists unpaid invoices at a specified date, while Activity covers a date range and includes a running balance. Software labels vary, so inspect the preview rather than choosing by name alone. MYOB customer statements. Xero also describes statements as a way to bring several unpaid invoices together. Xero's account follow-up guide.

Use the same customer entity, currency and cut-off date throughout. A balance for one company shouldn't silently absorb transactions belonging to another company in its group.

Follow one account from opening to closing balance

Here is a fictional customer account for 1 to 12 September 2026. The $2,200 opening balance is an older invoice, INV-3188. The payment shown below has already been matched to that invoice, and the $330 credit has already been checked and applied to INV-3201.

Assumptions: Fictional account, AUD, 1 to 12 September 2026. All receipts and credits shown have already been checked and allocated. No new GST calculation.

Date and reference	Document or activity	Added to account	Deducted from account	Running balance
1 Sep: opening	Unpaid INV-3188 carried forward	$2,200	None	$2,200
3 Sep: INV-3201	New invoice; due 17 Sep	$1,650	None	$3,850
5 Sep: RCPT-71	Payment allocated to INV-3188	None	$2,200	$1,650
8 Sep: CN-41	Approved credit applied to INV-3201	None	$330	$1,320
10 Sep: INV-3202	New invoice; due 24 Sep	$880	None	$2,200
12 Sep: closing	INV-3201 $1,320 plus INV-3202 $880	None	None	$2,200

Original ASBG fictional example. Use the assumptions above when replacing these figures with your own.

The arithmetic is $2,200 + $1,650 − $2,200 − $330 + $880 = $2,200. The closing figure happens to equal the opening figure, but it represents different invoices. That is exactly why sending only a total can be confusing.

The two remaining items are $1,320 on INV-3201, due 17 September, and $880 on INV-3202, due 24 September. At the 12 September cut-off, neither is overdue. "Outstanding" means unpaid; it doesn't necessarily mean late.

The table uses total document amounts, including any GST already recorded. Don't add another GST line to the closing balance. This example is an account summary, not instructions for calculating GST or creating a credit note.

Build a statement your customer can check

Put these details above the transaction list:

• Your business and the customer's buying entity, plus the customer account reference.
• "Statement of account", the statement date, date range and currency.
• Opening balance and the period it comes from.
• A contact for questions and references to the underlying invoices and credits.

Then show each invoice, receipt and credit in date order, followed by the closing balance and unpaid invoice breakdown. In your own document, link each invoice reference to its authorised customer copy, or attach clearly named copies. The fictional references here are labels, not live customer documents.

If a customer pays several invoices in one transfer, the statement can display the receipt and explain its existing allocation. If that allocation is uncertain, resolve it in the ledger before presenting it as settled. Don't turn this summary into a second place where staff independently maintain payment records; keep your bookkeeping record as the source.

Check before sending

Compare the closing balance with the customer's ledger at the same cut-off. Check that a payment received yesterday isn't still missing, a credit hasn't been counted twice, and a paid opening invoice hasn't remained in the unpaid list.

Save the exported version you send. If new activity arrives afterwards, a fresh statement should show its own preparation date and cut-off. Otherwise you and the customer may be looking at different versions while each believes the other's arithmetic is wrong.

You can use this covering note:

Attached is your statement for [period], showing an account balance of [amount] as at [date]. It summarises the existing invoice and credit references; it is not an additional invoice. Please check it against your records. If a payment or credit is missing, send its date, amount and reference so we can investigate. The unpaid invoices and their individual due dates are listed at the end.

If your records disagree

Work through the transaction references to find what explains the difference. Ask for the missing invoice or remittance reference and compare dates. A transfer initiated after your cut-off or a credit on another account may explain the gap.

Document any verified correction in the source records, then regenerate the statement. Don't invent a credit to force agreement. If the account is correct and payment is overdue, move to unpaid invoice follow-up. You can find the wider collection and forecasting routine in cash flow and getting paid.

Next, reconcile the difference when your customer reports another balance.

Key takeaways

• An invoice bills a sale; a statement explains an existing customer account.
• Use an activity statement when payments and credits matter to the explanation.
• Reconcile the closing balance to the unpaid documents, and show their own due dates.
• Correct source records before regenerating a statement; don't bill the closing balance again.

Where to get help

• MYOB: customer statements for current statement options.
• ATO: tax invoices for tax-document requirements.
• Your bookkeeper for an unexplained account difference, or a registered BAS agent for GST documentation questions.