An Australian Statement of Account is a periodic financial summary document issued by a supplier to a customer that consolidates all account activity during a specified period — typically one calendar month. It shows the opening balance owed at the start of the period, all invoices raised during the period, all payments received, all credit notes issued, and the resulting closing balance that the customer owes at the end of the period. It is also a clear payment prompt, reminding the customer of amounts due and overdue and providing payment instructions.

The Statement of Account is a distinct document from a tax invoice. A tax invoice is issued for each individual taxable supply and is the document that allows the customer to claim an input tax credit for GST under the A New Tax System (Goods and Services Tax) Act 1999 (Cth). The Statement of Account does not create new GST obligations — it simply summarises the debts already created by the tax invoices issued during the period. Accordingly, a Statement of Account should always note that individual tax invoices have been issued separately, as the statement alone is not sufficient documentation for the customer to claim input tax credits.

For businesses with ongoing trade credit accounts, the Statement of Account is an essential accounts receivable management tool. It reconciles the supplier's and customer's records, identifies any discrepancies (such as a payment that the customer claims to have made but the supplier has not received), highlights overdue amounts that require prompt follow-up, and provides the customer's accounts payable team with a single consolidated document for payment processing. Issuing regular, accurate statements is one of the most effective tools for maintaining healthy cash flow and reducing debtor days.

The Statement of Account also has legal significance: it is documentary evidence of the amounts owed by the customer and can be used in support of debt recovery proceedings if the customer fails to pay. A Statement of Account that is not disputed by the customer within a reasonable time supports the supplier's case that the customer accepted the balance stated.

A Statement of Account should be issued in the following circumstances.

Routine monthly account reconciliation. Businesses that supply goods or services to trade customers on credit terms — whether 7, 14, or 30 days — should issue monthly Statements of Account as part of their standard accounts receivable cycle. Monthly statements assist customers in processing payments, reconciling their accounts payable records, and identifying any invoices they may have missed or misplaced.

Following multiple transactions in a period. Where a customer has placed multiple orders and received multiple invoices during a month, a single consolidated Statement of Account is far more useful than requiring the customer to reconcile each invoice individually. The statement provides an at-a-glance view of the account's position.

Where accounts are partially paid or credits have been applied. A statement clearly shows how a payment has been applied across multiple invoices and how a credit note has reduced the balance, which can otherwise be a source of confusion and disputes.

When an account is overdue. Where a customer has failed to pay one or more invoices by their due date, issuing a Statement of Account that clearly identifies the overdue amount, the number of days overdue, and the consequences of non-payment (such as interest charges or suspension of credit) is the first step in a structured collections process. A statement followed (if necessary) by a formal letter of demand is standard practice in Australian commercial debt recovery.

At the end of a financial year or accounting period. Many businesses issue statements at 30 June (the end of the Australian financial year) and at the end of each quarter to assist customers in reconciling their accounts payable balances for BAS and tax purposes.

For new or infrequent customers. Issuing a statement after each transaction or at the conclusion of a project gives infrequent customers a clear picture of what they owe and when payment is due, without requiring them to track multiple separate invoices.

An effective Australian Statement of Account should contain the following key elements.

Statement identification. Each statement should carry a unique statement number, the statement date, and the period it covers (from and to dates in DD/MM/YYYY format). The statement number assists with filing and cross-referencing, particularly when the customer queries a specific statement.

Supplier details. The supplier's full legal name, ABN, registered address, phone number, and accounts receivable email should be clearly shown. This information allows the customer to contact the right person quickly with payment or query enquiries.

Customer account details. The customer's full legal name, address, and account number (where the supplier uses an internal account numbering system) should be shown. Many suppliers also show the customer's credit limit and current credit limit utilisation on the statement.

Opening balance. The balance owed at the start of the statement period should be clearly shown, along with its status (current or overdue). The opening balance on the current statement should match the closing balance on the previous period's statement, which provides a self-checking mechanism.

Transaction listing. All transactions during the period should be listed in date order, with the date, description (invoice number, payment reference, or credit note number), and amount for each transaction. Debits (invoices) are shown as positive amounts and credits (payments and credit notes) are shown in brackets. This gives the customer a complete record of account activity.

Subtotals. The total invoiced, total payments received, and total credits applied during the period should be summarised separately. This assists the customer in reconciling the statement against their own accounts payable records.

Closing balance. The total amount outstanding at the end of the period should be prominently shown, with a separate breakdown of the current amount (within payment terms) and any overdue amount (past the payment due date).

Aging analysis. An optional but highly recommended feature is an aging analysis showing how long outstanding amounts have been outstanding — for example, 0-30 days, 31-60 days, 61-90 days, and 90+ days. This clearly identifies which amounts are overdue and by how long.

Payment instructions. Clear and complete payment instructions — including BSB and account number for EFT, BPAY biller code and reference, or other payment methods — are essential. The customer should be able to make payment from the statement without needing to contact the supplier.

Legal and GST disclaimer. The statement should note that it is not a tax invoice, that individual tax invoices have been issued separately, that all amounts include GST at 10% where applicable, and that all amounts are in AUD.