Statement vs. invoice — What’s the difference?

When you use statements and invoices correctly you can not only make your business more efficient, you can also make collecting customer payments faster and easier.

Businesses need to send statements and invoices to customers, and sometimes even to third-parties. Discover the difference between a statement and an invoice, plus learn how to digitally send them. Certain apps and invoicing software make it simple to create, sign, and share statements and invoices. When you understand which one to send and when, collecting payments becomes just that much easier.

What’s a statement?

A statement is a document outlining all outstanding unpaid invoices (or bills) for a certain customer. Unlike invoices, statements are typically sent or made available at certain intervals. For example, many businesses send statements at the end of each month or quarter to individuals who have an outstanding balance.

Statements are traditionally informal. 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, the statement is inaccurate. Learn how to easily create a statement template.

A billing statement is generally more comprehensive than an invoice, totaling the overall transactions that have happened at any given time. In this context, a billing statement covers many different transactions. An invoice only covers a single session of purchases.

What’s an invoice?

An invoice is a formal document outlining amounts owed, details about a transaction, costs per hour or unit, and more. Essentially, invoices are sent to customers or other businesses in order to receive payment.

Invoices also typically outline payment requirements. For example, a business may indicate that payment is due 30 days from the date services were rendered or a product was delivered.

Invoices cover a single round of purchases, tabulating total costs and line items. They can be used as reference tools to show ownership.

Comparing an invoice and a statement.

Understanding the differences between a statement vs. invoice can help create more efficient business processes. There are several key differences to be aware of:

• Use case. Invoices give buyers itemized run-downs of what they’ve bought and when. Buyers can also pay on invoices. Statements, however, are used to tabulate account transactions and outstanding totals.
• Timing. Invoices are generally sent at the time of purchase. Statements are sent routinely as a part of a company’s billing process.
• Reference. Accountants generally handle statements and invoices differently. Invoices need to be noted in accounts payable. Statements do not need to be notated.

With e-signature software like Acrobat Sign, digital invoices let customers review, sign, and pay electronically on nearly every device and from anywhere — making it easier to keep detailed records and collect payments promptly.

You can freely send your documents in confidence, keeping your PDFs protected and your documents secure. Create invoices with ease, automating administrative work and limiting your paperwork process.

Discover everything you can do with Acrobat Sign to level up your business today.