An invoice is a request for payment from a supplier, while a statement is a summary of activity on an account over a given period of time. Both are important documents for businesses but serve different purposes. Let’s take a closer look at the differences between invoices and statements.
What is an Invoice?
Invoices are critical documents in the business world. These documents provide a detailed record of the goods or services that were provided, along with the cost of those goods or services. Invoices also help to establish a legal obligation on the part of the buyer to pay for the goods or services that were received. As a result, Invoices play a vital role in ensuring that businesses are paid for the work that they do. Invoices also serve as a valuable record-keeping tool, providing a clear paper trail of the transactions that have taken place between a buyer and a seller. For these reasons, it is important to understand what an Invoice is and how it can be used in business dealings.
What is a Statement?
In accounting, a statement is defined as “a formal record of financial activities or position.” A statement can be either financial or non-financial in nature. Financial statements show a company’s financial position, performance, and cash flow. Non-financial statements provide information about a company’s operations, such as sales, expenses, and employee productivity. Statement interchangeably refers to any one of these types of statements. In other words, the term “statement” can be used to refer to either a financial statement or a non-financial statement. Statement interchangeably is thus a broad term that can be used to describe any type of formal record of a company’s financial activities or position.
Difference between Invoice and Statement
An Invoice is a document that lists the products or services that have been provided to a customer, along with the corresponding prices. Invoices are typically issued when goods or services have been delivered, and they serve as a record of the purchase. Statements, on the other hand, are documents that summarize a customer’s account balance. Statements are typically issued on a monthly basis, and they provide an overview of all the transactions that have taken place over the course of the month. While invoices and statements may seem similar, they serve different purposes. Invoices are used to track sales, while statements are used to track account balances. As a result, it’s important to understand the difference between these two types of documents.
The invoice is a document that is sent to the customer, usually as a PDF attachment, which outlines what was purchased, the quantities, and the prices. The statement, on the other hand, is a summary of all activity on an account for a given period of time. This can include payments received and made, credits and debits, and any fees or interest accrued. Statements are typically mailed to customers on a monthly basis.