What is a statement of account?

A statement of account serves as a communication tool between a business and its customers, detailing the current status of the customer's account. This report typically includes information such as outstanding balances, recent transactions, payments made, and any applicable due dates. It provides customers with a clear view of their financial obligations and helps them keep track of their account activity, ensuring transparency in financial dealings.

In contrast, a summary of a business's financial statements focuses on the overall financial performance of the company, providing a high-level overview rather than details specific to individual customer accounts. A document outlining credit policies addresses the terms and conditions under which credit is extended but does not provide account-specific information. A ledger of all transactions is a detailed record of financial transactions, but it does not present that information in a customer-oriented format like a statement of account does.