What is a Billing Statement?

A billing statement is a listing of the transactions impacting an account during a specific period of time. Statements are typically sent to customers on a monthly basis, so that they can review and verify account activity. The format of a statement that relates to unpaid customer receivables usually contains a reminder to pay any unpaid amounts that have exceeded the payment terms assigned to a customer.

Advantages of a Billing Statement

A billing statement is a relatively innocuous collection technique, since recipients do not consider it to be overly intrusive. As long as it is received by a payables clerk who is interested in reviewing it, a billing statement may result in some overdue invoices being paid.

Disadvantages of a Billing Statement

When billing statements are mailed, the seller incurs the cost of printing and postage. This may not represent much of a cost-benefit tradeoff if customers are not diligent in reviewing the statements.