The short answer
| Invoice | Statement | |
|---|---|---|
| What it is | A demand for payment for one supply | A list of outstanding invoices and payments |
| When you send it | After each job or delivery | Usually monthly, or when chasing payment |
| What it asks for | Payment of a specific amount | Payment of the total balance |
| Does it create a debt | Yes | No — it summarises debts already created |
| VAT document | Yes, if it is a tax invoice | No |
What an invoice does
An invoice is the document that creates the debt. It says what was supplied, when, and how much is due. It carries a unique invoice number, a due date, and the details needed for the client to pay and for you to prove the sale. Once you are VAT registered, it becomes a tax document too.
What a statement does
A statement is a snapshot of the client's account. It lists the invoices still unpaid, any credit notes, and any payments received. It usually includes an ageing breakdown — 30, 60 and 90 days — so the client can see at a glance how old each part of the debt is.
- It does not replace an invoice.
- It does not create a new debt.
- It is a reminder and a reconciliation tool.
- It is most useful when a client has several open invoices.
When to send each
- Send an invoice the day the work is done or the goods are delivered.
- Send a statement at month end, or when a client has multiple unpaid invoices.
- Send another statement before you stop work for non-payment.
- Use the statement as the basis for a phone call, not a replacement for one.
A statement ageing example
| Invoice | Amount | 30 days | 60 days | 90+ days |
|---|---|---|---|---|
| INV-0012 | R3,200.00 | R3,200.00 | ||
| INV-0015 | R1,850.00 | R1,850.00 | ||
| INV-0009 | R2,100.00 | R2,100.00 | ||
| Total outstanding | R7,150.00 | R3,200.00 | R1,850.00 | R2,100.00 |
The ageing is what makes a statement powerful. A client can ignore one overdue invoice, but a table showing R2,100 over 90 days is harder to dismiss.