Billing Statements: Templates & All You Need

Billing statements

A ton of people use credit cards to make both smaller, routine transactions as well as larger, one-time purchases. While these transactions are shown on their monthly billing statements, not everyone is aware of how crucial it is to monitor those bills and make sure they are paying the minimum amount due each month to avoid late payment costs. With a template and all that a billing statement entails this won’t be an issue by the time you are done reading this post.


The following details can be found on the billing statements:

  • Opening balance, which shows how much you owed at the start of the month.
  • Splurges made throughout the month.
  • Withdrawals of money.
  • The interest rate applied to the unpaid amount.
  • Any fines for late payments.
  • The total sum due as of the statement’s date.
  • The needed minimum payment.
  • The minimum payment’s deadline.

The interest rate applied to the sum you carry over, as well as your credit limit and available credit, are other important details that are offered.

On the other hand, although your credit card permits you to charge up to your credit limit, it’s important to note that doing so will cost you money because credit cards have a high-interest rate. To minimize interest payments, it pays to keep your outstanding balance as low as possible. Additionally, when you receive your billing statement, be sure to pay at least the required minimum to avoid paying late fees.

What is a Billing Statement?

A “billing statement” is a monthly report that credit card firms send to cardholders that details recent purchases made, the minimum payment needed each month, and other important details. Each billing cycle’s conclusion results in the monthly issuance of billing statements. For instance, those who use credit cards can get their billing statements online or by mail.

The Functions of a Billing Statement

Billing statements are a crucial kind of communication since they tell a borrower how much money they need to pay each month in order to keep their accounts current. It also contains other crucial details, like the transactions that took place throughout the month, the total interest incurred, and any fees the creditor added to the balance. It also displays the closing statement balance, which the borrower may pay in full.

What’s in a Monthly Billing Statement?

Generally, a billing statement has numerous sections. Some of which include; the cardholder’s previous balance, payments, and credits (the amount paid toward their balance plus any merchant refunds), the total dollar amount of new purchases made during the most recent billing cycle, balance transfers, cash advances, fees, interest charges, and the new total balance.

You can basically learn how the card issuer determines interest rates on purchases.

Additionally, a billing statement informs the borrower of the minimum payment required as well as the deadline to prevent late fees. Revolving credit accounts give borrowers access to an available credit line that they can use each month to pay off and reapply. The borrower is also able to pay off their balance to maintain their account in good standing and their credit line alive by making the minimum monthly payment, which is calculated by the credit provider each month.

Furthermore, the cardholder can locate information about their account in a different section of the billing statement. Comprehensive account information, including the cardholder’s total credit limit, the amount used, and the amount available, will be displayed in this area. Moreso, it will display the available cash advance amount.

What Distinguishes a Billing Statement From an Invoice?

A billing statement is a broad account of transactions, including payments made and due, whereas your invoice, is itemized.

  • A statement can be issued on a regular basis or upon request, whereas an invoice is typically issued before or after the sale or service is completed. Although most businesses send out billing statements on a monthly basis, you can change the frequency based on the type of your business and the preferences of your customers.
  • When it comes to itemizing the product or service, shipping costs, and sales taxes, invoices are much more thorough. The item description will not be included in a statement; just transactions and payments will be recorded.
  • Last but not least, a billing statement is sent to a client to advise them of prior invoices, recorded payments, or even to alert them to non-payment, whereas an invoice is sent to a client to request payment.

Vital Information to Always Include on Your Billing Statements

Your billing statement is more than just a summary of the invoices you received over the month (or whichever date range you select). It could also act as a subliminal reminder of unpaid debt or missed payment.

You run the risk of your payment being delayed if your statement is incomplete or contains missing or incorrect information.

It should always be precise, succinct, and thorough, leaving no room for misinterpretation on your part or your client’s. The details ought to be visible to you both at a glance.

The sections may differ according to your company’s requirements, but generally speaking, you should have:

#1. Date of Billing Cycle

The billing cycle dates should be clear to your client, despite the fact that they may appear obvious. No matter how often you deliver the billing statement—weekly, bimonthly, or monthly—they should be able to tell right away what cycle of invoices is coming up. You can use this to assist with your own filing and record-keeping.

To avoid confusion with the invoice number, you might also find it useful to include a statement number.

#2. Client’s previous balance

It’s simpler for your clients to verify that the information they have matches what shows on their bill if you let them see how much they owe you before they make any payments.

#3. Invoice Numbers and Dates

While information like an invoice or statement number is mostly for your use, invoice dates assist you to make sure the invoices that appear on the statement are from the billing cycle you’ve chosen. These will assist you in maintaining a record of your invoices, and the ability to look up an invoice number makes it simpler to locate an invoice in the event of a query.

#4. Payments received

It’s likely that you’re already recording and emailing your consumer a receipt as soon as you receive their payment. The activity summary will then include these payments as part of the billing statement.

#5. Balance Both Owed and Due

It’s important for the balance to show up on the billing statement, especially if the client hasn’t paid you on time. The customer owes you money, and this specific field is a not-so-subtle reminder of that fact. If you need to follow up on your billing statement with a phone call, you can point out to the client that they haven’t paid you in a particular number of days thanks to the rolling balance at the bottom of the billing statement.

#6. Due Date for Payment

The date that you expect payment should also be included on your billing statement so that there is no chance of misunderstanding on either side.

Example of a Billing Statement

Sue makes regular purchases with her credit card and settles the balance once she has paid. She occasionally makes major purchases with her card and pays them off over a period of time. She consistently makes the minimum payment before the due date, maintaining a good credit rating as a result.

When she receives her monthly billing statement, she checks it against her records of what she purchased, the money she withdrew, and the payments she made.

Why a Billing Statement Is Beneficial

Since recipients do not find billing statements very intrusive, they are a relatively harmless collection method. A billing statement may result in the payment of some past-due invoices if it is received by a payables clerk who is interested in analyzing it.

The drawback, however, is that the expense of printing and mailing is borne by the seller when billing statements are mailed. If buyers are not careful to carefully scrutinize the representations, this may not constitute a significant cost-benefit tradeoff.

When Will You Receive Your Billing Statement?

Each monthly cycle’s end, your billing statement is mailed to the address your credit card company has on file.

In order to provide you enough time to complete your payment on time and avoid finance charges if a grace period is applicable to your debt, the law mandates that credit card billing statements be sent at least 21 days before the due date.

You’ll get an email notifying you that your bill is available to view online if you’ve signed up for paperless billing, which allows you to view your credit card statements online rather than having a paper statement mailed to you. Simple electronic versions of your paper statements are known as “paperless statements.” Log onto your online credit card account and search for a link to your statement to view your paperless statement.

Meanwhile, even if you haven’t signed up for paperless billing, many credit card issuers allow you to get billing statements online.

However, to view the paperless version of your billing statement, you’ll probably need a PDF reader. The statement you obtain from the internet matches the one you would receive in the mail exactly.

In order to get your credit card statements or email notifications connected to your statement, be sure your credit card issuer has your accurate mailing or email address.

Will You Receive a Statement if Your Card Is Closed?

Even when the account is terminated, you’ll still get monthly billing statements until the credit card debt is paid in full.

You will still be obligated to make consistent monthly payments after closing your account, and any unpaid balance may still be subject to interest and fees.

You won’t be able to add any more charges to your account, though.

Meanwhile, if your account is canceled, check your billing statement to ensure that transactions are accurate and payments have been applied properly.

What to Do if Your Billing Statement Is Incorrect

Verifying that everything is accurate is one of the most crucial reasons to carefully study your credit card account. You have the right to dispute a billing error with the credit card company within 60 days of receiving the statement, but you must act quickly.

The majority of credit card companies will settle your dispute over the phone. However, you must send a letter outlining your complaint in order to protect your rights under the Fair Credit Billing Act.

If the credit card company doesn’t fix the problem, you will have proof that you contested the billing error in that case.

Meanwhile, if you need to file a complaint with a government body, such as the Consumer Financial Protection Bureau (CFPB), or file a lawsuit against your credit card company, having proof will be helpful. It’s acceptable to initiate the procedure with a phone call and then send a letter as a follow-up.

Not All Transactions Are Listed on Your Billing Statement

Only account activity that occurred during your billing cycle is shown on your billing statement. Your billing statement won’t reflect any transactions you performed before, during, or after the beginning and conclusion of the billing period. The billing cycle dates can be seen at the top of your credit card statement.

Log in to your online account to view a list of transactions that have been posted to your account since your billing statement was created. If you need to see a transaction that happened before the billing cycle for your current credit card statement, you’ll need to hunt for a copy of the previous credit card statement.

To do this, visit the credit card company’s website and look for a sign-up link to create an online account. You can log in at any moment to examine your account information or make a payment after creating a username and password.

What Should You Do If You Don’t Get a Billing Statement?

If your account balance is less than $1 and there was no action on your account during the preceding billing cycle, you could not receive a billing statement. Also, if your credit card company doesn’t have the correct address for you on file, that could be another reason why you don’t receive a billing statement. If you just relocated, you must notify the credit card company to alter your billing address.

Finally, the credit card firm is not required to send you a statement if your account is in collections or has been charged off.

Note: If you haven't received your statement, especially if there could be a payment due, call your credit card company.

Billing Statement Template

This billing statement template can be used for regular billing, straightforward client account administration, and tracking invoices. It might be all you need, despite not having as many features as other small business billing software. It includes a column for the invoice number, a column for client payments, and a column for general amounts that can be used for all other charges, credits, debts, fees, and so on.

When a client, like a renter in one of your rental properties, makes recurring payments to you, such as monthly rent, this kind of billing statement might be helpful. Similar to our free invoice template, a billing statement may also be used as a customer-specific account receivable ledger because it lists individual transactions as well as the current amount. For further details on utilizing this template for tracking invoices, see the section below.

Billing Statement Template

Billing Statement FAQs

How do you explain a billing statement?

A billing statement is a monthly credit card statement that lists all of the transactions made on your account over the previous month. All purchases and payments are itemized on the bill. It displays the account’s current balance as well as the deadline for making payments in order to avoid finance charges.

Is a billing statement the same as an invoice?

When you receive a bill, it’s an invoice for products or services that someone else provided for you and wants you to pay. The official or technical document for a bill is an invoice. On the other hand, a statement is a current account of what customers still owe vendors.

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