Account Statement in Ledgers Contact Dashboard

The Account Statement is found in your Contact Dashboard and displays a very similar function to that of a bank statement – it allows you to keep track of your finances as it relates to each of your customers and/or vendors. The Account Statement will provide an overview of everything that has occurred as it relates to your business dealings, and it will show you the opening balance, the closing balance, and how each transaction fits into that equation.

What's Included in the Statement

The opening balance (starting balance) shows both the receivable and payable transactions from the beginning of the period. This indicates if the contact paid you, you paid them, or if the account was settled at the start of the period. If you are a customer, your sales side statement will show all raised invoices, any payments received as receipts during the period, any credit notes issued for returns or corrections, and TDS deducted on those invoices (if applicable) and will also contain the relevant date, document number and amount associated with each invoice, enabling you to trace back to the original transaction if necessary. Similarly, for suppliers, your purchases side statement will show all received purchase bills, payments made as vouchers during the period, any debit notes issued for returns or corrections of purchases, and any TDS deducted on payments. This provides a history of the payments you have made to the supplier and any amounts you still owe. The closing balance at the bottom of the statement gives you the balance with this contact at the end of the period. A positive closing balance means that the supplier has a credit balance (they owe you) and a negative closing balance means that you have a debit balance (you owe them).

Why Account Statements Matter

Account statements are essential for reconciliation. When a customer disputes their outstanding amount, you can pull up their statement and walk through each transaction together. This transparency helps resolve disagreements quickly and maintains good relationships.

For internal purposes, statements help you prioritize collection efforts. You can quickly identify which customers have the largest outstanding balances and how long those amounts have been pending. Similarly, for suppliers, you can ensure you're not missing any payment deadlines and maintain good credit standing.

Statements are also useful during audits or financial reviews. Instead of piecing together information from different reports, everything is consolidated in one document. You can export these statements for sharing with stakeholders, accountants, or the contacts themselves.

Using Statements Effectively

Generate account statements regularly, not just when there's a problem. Monthly statements sent to customers serve as gentle payment reminders and keep communication open. Review supplier statements before making payments to ensure everything matches up correctly.

The account statement turns complex transaction data into a simple, understandable summary that anyone can follow.