What is the Difference Between Invoice and Statement?
🆚 Go to Comparative Table 🆚The main difference between an invoice and a statement lies in their purpose and the scope of information they provide. Here are the key differences between the two:
- Purpose: An invoice is sent to request payment for a specific transaction, while a statement is sent to provide a summary of account activity and inform the customer about their outstanding balance.
- Scope: An invoice covers a single transaction, providing detailed information about the products or services purchased, their prices, and taxes. On the other hand, a statement covers multiple transactions and shows the overall account activity during a specific time period.
- Details: Invoices include more specific details about the sale, such as the item description, individual prices, and quantities. In contrast, statements provide a grand total due for each invoice and offer an itemized list and grand total.
- Timing: Invoices are sent at the completion of any sale, while statements follow regular intervals, usually monthly.
- Payment Terms: Invoices include payment terms, whereas statements display the outstanding balance and do not provide payment terms.
In summary, an invoice is a detailed, formal document that serves as a request for payment for a specific transaction, while a statement is a more comprehensive, informal document that shows the overall account activity and reminds the customer of their outstanding balance.
On this pageWhat is the Difference Between Invoice and Statement? Comparative Table: Invoice vs Statement
Comparative Table: Invoice vs Statement
Here is a table comparing the differences between an invoice and a statement:
| Feature | Invoice | Statement |
|---|---|---|
| Purpose | Request payment for a specific transaction | Provide an overview of account activity for a specific period |
| Intention | Made with the intention of getting paid | Made with the intention of keeping both parties in the loop about the total amount due |
| Development | Developed whenever projects are done, milestones are achieved, or at the end of the month | Occur in timely intervals, mostly at the end of the month |
| Content | More detailed, includes information about sales taxes, discounts, etc. | Less detailed, shows an itemized list of transactions for the statement period |
| Timing | Relates to a specific transaction | Covers multiple transactions and provides a summary of transactions within a specific period |
| Payment Terms | Includes payment terms for the specific transaction | Does not include payment terms for individual transactions |
| Invoice Number | Yes, one unique invoice number | No, includes a list of invoices with their respective numbers |
| Company Branding | Yes, usually includes company logo and branding | No, or limited branding |
Both invoices and statements are important documents for any business, as they help track transactions and maintain bookkeeping records. However, they serve different purposes and have distinct characteristics.
Read more:
- Invoice vs Bill
- Receipt vs Invoice
- Invoice vs Tax Invoice
- Balance Sheet vs Income Statement
- Income Statement vs Cash Flow Statement
- Statement of Affairs vs Balance Sheet
- Invoice vs Purchase Order
- Cash Book Balance vs Bank Statement Balance
- Balance Sheet vs Statement of Financial Position
- Proforma Invoice vs Commercial Invoice
- Balance Sheet vs Cash Flow Statement
- MSRP vs Invoice
- Financial Reporting vs Financial Statements
- Cash Flow vs Fund Flow Statement
- Cash Budget vs Projected Income Statement
- Accounts Payable vs Accounts Receivable
- Annual Report vs Financial Statements
- Accounts Receivable vs Notes Receivable
- Account Payable vs Note Payable