Statements and invoices are familiar concepts to every company owner, no matter how little. Perhaps you issue them to customers or are responsible for their receipt and distribution. So, when it comes to statement vs invoice, how can you tell the difference between a statement and an invoice?

Invoices and statements serve the same purpose and are used by companies of all sizes. In addition, you likely often deal with bills and statements in either your role as an issuer or a receiver.

Invoices and statements are standard financial papers that record monetary transactions like purchases and payments. Therefore, the information on statements and invoices is functional and serves as evidence of financial dealings.

Invoices and statements must be sent to clients and partners regularly. Find out the difference between a statement and an invoice and the ins and outs of electronic billing statements.

Moon, The process of making invoices and having them signed and sent out is streamlined by Invoice. Knowing which one to send and when makes receiving payments much more straightforward.

Learn the difference between statement vs invoice and their purposes and commonalities in the business world. The two documents have similarities but serve different purposes and goals.

What is a Statement?

Statement Example
A customer’s or client’s statement is a snapshot in time that reflects the financial status of their account at that moment. It is published at regular intervals, often once a month. In most cases, the purpose of a statement is to explain some aspect of a transaction or to bring attention to a future payment.

Some details on a statement include the previous balance, invoice payments or amounts paid during the billing period, and transactions during the statement period — including the date, invoice number, and invoice total. In addition to the interest rate, payment due date, and accepted payment methods, a company offering credit terms may provide further information.

When generating customer or client statements, you can include the outstanding balance or all transactions for that period. Some clients want to examine every purchase made within the statement cycle, so they can verify the numbers on their receipts against what you have on file.

When is It Issued?

There are three possible situations in which the statement is made:

  • When government auditors need access to your books,
  • In accordance with established time frames
  • As soon as a consumer requests it

Let’s go further into these potential outcomes.

When government auditors need access to your books,

  • Every company hopes this never happens since it is so exceptional. However, the Internal Revenue Service may request a specific bank account statement from you.
  • There are three situations when this occurs most often.
  • That’s why they thought the deals were shady.
  • Your profile has been flagged.
  • Audits should be performed at random.

In accordance with established time frames

Statements are often prepared periodically when there is a long-term trading relationship between a buyer and a seller. These periodic statements are generated at predetermined times and contain all transactions (refunds and payments) between the previous statement period and the current statement date.

The statement period is the time allotted for the production of statements. This billing cycle typically occurs once each month.

However, depending on the kind and frequency of the transactions involved, it might take as little as one day or as long as a week.

As soon as a consumer requests it

At the customer’s request, a statement may be produced at a particular time for a specified time.

Anytime consumers want to review their transactions and see how much money is in their account, they may request a statement.

What Does a Statement Look Like?

Client A gets a statement from your firm detailing the services and goods purchased over the last 30 days and any payments, credits, and outstanding amounts. The invoice shipment is evidence that your firm has received and acknowledged the purchases mentioned above and is entitled to payment.

Examples of a typical statement are:

  • Client’s Name
  • Funds Flow
  • Details of Assets
  • Profits
  • Spending
  • Term of report

Of course, it’s much simpler to say than to execute. There are probably a lot of small-business owners, remarkably fresh-faced novices, who will find this to be over their heads. They are more likely to make errors.

What is an Invoice?

Invoice Example

Sellers often provide invoices to their customers to collect money owed on a purchase. It aims to impose a financial duty on the purchaser. Invoices may be either periodic (performed following a predetermined schedule) or one-time (drafted in response to a single transaction).

Typical invoice specifics are often as follows:

  • Information about the company, including the name and logo (phone number, address, website)
  • Client Identifying Details and Name
  • The Invoice Number
  • Invoice Date Payment Due Date and payment terms (if applicable)
  • Acceptable Forms of Payment (cash, check, credit card, debit, etc.)
  • Detailing the price, amount, and short description of all provided items and services.
  • Sum payable plus applicable taxes and service charges

For every company that issues product or service invoices, invoices are an essential aspect of the accounting process. Whether you are the billing party or the party being billed, this is true. When an invoice is received, it represents both a financial obligation and a cost to the receiving company.

Invoice serves as a paper trail of money owed to your company. The phrase “accounts receivable” is used in accounting to describe sales for which payment has not yet been received. As a result, your company’s financial health and cash flow may suffer if payments are late or invoices go unpaid. Because of this, you’ll need a reliable invoicing system to keep tabs on which bills have been paid and which have not.

When is It Issued?

At the close of business, an invoice is often sent to the client, which is a leap in logic and is not always true.

Since a sales invoice is a payment request, it is sent anytime payment is required.

Issue Invoices at the Right Time!

Sending invoices at the right time increases the chances of getting paid faster. So, design an invoice and start shooting!

Send an Invoice Now!

This is now conditional on each company’s specifics and client contracts.

At the time of agreement closure, all parties will agree on a time frame for invoicing that will be binding in all circumstances.

While a business owner waits until the conclusion of the transaction to send an invoice, certain firms, particularly those providing services like consultants, contractors, and freelancers, may send bills to clients before the service period begins.

What Does an Invoice Look Like?

A typical invoice includes all the information you need to validate the invoice, from the customer’s name to their contact information.

That means it has had, from the get-go:

  • Title: Invoice
  • Date of Invoicing
  • Invoice Number
  • Amount Due
  • Your Business Details
  • Client’s Business Details
  • Components Items in the line
  • Taxes and VAT Applicable
  • Total Sum
  • Payment Duration
  • Mode of Payment
  • The legalese for Conditions & Terms

Do you think that’s too much information to retain?

To ease this burden, we have provided a blank invoice form that can be downloaded, completed in minutes, and sent to the customer’s account.

Statement Vs Invoice: Key Differences

Please note several key differences that will help you identify between an invoice and a statement.

Parameter Invoice Statement
Purpose of the document Invoicing is sending a formal request for customer payments for goods or services rendered by one party to another. For example, companies will send unpaid invoices to customers as a formal request for payment for goods or services that have not yet been delivered. An account statement records financial activities for a specific time frame. Expenses or outstanding amounts may be included. For example, a statement may contain an invoice for payment, but it is not a bill.
The contents of the document Services and goods rendered at a given period are often detailed on invoices. A plumber, for instance, may issue a bill for the time and materials required to fix a toilet. It’s essentially an invoice for his services. All business dealings conducted with a corporation within a certain period will be detailed in a statement. Your current financial position with that company may be ascertained from the data provided. For instance, the items you purchased in the last month may be easily tallied with the help of your statement. Statements are used in business to verify the accuracy of invoices and cash collections.
Frequency of the document Invoices are sent out when a customer has an outstanding balance for a service or item. To provide one concrete example, you may get an oil change for your automobile. After the job is done, you will get an invoice detailing the quantity of oil applied, the hours of work, and the overall cost. After making your payment, you get in your car and leave. You may expect to get your monthly statement at regular intervals. For example, credit card statements are sent regularly, but quarterly investment statements are more common.
Presentation of the document The information on an invoice is quite particular to a single transaction or service rendered. The level of specificity is adjusted based on the accounting requirements of the business. In most cases, an invoice will only take up one page. Instead of focusing on a particular event, a statement gives context for the whole era. Every transaction, whether paid or not, is detailed here. Listings of service providers, costs, and due dates are the most common format for these documents. If there are several transactions, a statement might span many pages.

Similarities Between a Statement and an Invoice

There are certain commonalities between the statements and the bills, notwithstanding their differences.

Realizing these parallels can help you think more clearly and grasp the idea deeper.

Do you want to know the answer?

Here we go.

How are they Similar?

  • They both are Legally binding documents
  • Sellers send statements and invoices
  • Due balance


So, that was all about statement vs invoice. Most small firms just starting with accounting often mix invoices and statements because of their similarities. When a client receives an invoice, it implies that the service provider has finished their part and is now seeking payment.

However, the customer’s entire transactional activity may be seen in the statement, which will be made public regularly.

We’ve tried to make it easy to tell the two papers apart by defining each in its own section of the blog and drawing detailed comparisons between statement and invoice.

Start using Moon Invoice, the industry-leading invoicing software, if you want to create polished invoices and accelerate your payments. Invoices may be made with a personal touch and at no cost using this programme. So launch your risk-free trial now and immediately get its rewards.


Jayanti Katariya
Jayanti Katariya About the author

Jayanti Katariya is the founder & CEO of Moon Invoice, with over a decade of experience in developing SaaS products and the fintech industry. He holds a degree in engineering. Since 2011, Jayanti's expertise has helped thousands of businesses, from small startups to large enterprises, streamline invoicing, estimation, and accounting operations. His vision is to deliver top-tier financial solutions globally, ensuring efficient financial management for all business owners.