Invoice vs Statement Simplified

Invoice vs Statement 

Invoice and statement are some words you’ll encounter while working, shopping, or running a business. they have their similarities for example both invoices and statements are essential when conducting a sale they are necessary tools for businesses to mark a purchase or a deal. But the similarities end there, for they have very different purposes and worth. 

What is an Invoice?

An invoice, bill, or tab is a commercial document issued by a seller to a buyer relating to a sale transaction and indicating the products, quantities, and agreed-upon prices for products or services the seller had provided the buy, it usually contains:

  • Invoice number 
  • Business name and info
  • Customer name and info 
  • Product description or what kind of service the customers availed, 
  • Subtotal due before tax and discounts
  • Tax being charged
  • Total amount due: the total after the tax and discounts availed
  • Payment information: how the customers can pay
  • Payment terms: if the customer opted to pay thru credit card, it will be stated here when’s the due date for the payment and the policy concerning late payments

What is a Statement?

Statements are traditionally informal, statement usually is a document outlining all outstanding unpaid invoices for customers. Unlike invoices, statements are typically sent or made available at certain intervals. For example, most businesses send statements at the end of each month or quarter to customers with an outstanding balance or missed payment.

They’re used primarily for informational purposes because a customer may pay an invoice while a statement is in transit. For example, if a customer receives a statement in the mail the same day they pay an invoice, rendering the statement invalid/incorrect. It’s more like a notification rather than an official document

Final Takeaway:

The difference between invoice and statement is vast. An invoice is an invaluable asset with all the information needed to keep track of the transactions/payments made and it marks a successful deal/transaction. A statement is more of a notification, a reminder that you have outstanding payments to make that you receive by the end of the month.

Now you have the basic knowledge about invoices and statements, you can learn more about invoices through Blinksale, and learn more about how you can design to make your invoices automated, look sleek, and professional.

Ready to get paid faster and grow your business?

Try for free