SOA Full Form in Banking is Statement Of Account. You can think of an account statement as a record of all business dealings between your company and a specific client during a specified time frame.
Statements of accounts are commonly used by banks or businesses to inform clients of the amounts due for sales made on credit within a given time period. This manual explains what a customer’s statement of accounts should include and how it should be filed.
Importance of SOA
Statement of accounts (SOA) is indeed a useful tool for summarizing the billed goods and services to a customer. Statements aid business owners in verifying consumer payments received within a given statement period (often one month).
When you have customer base for which you need to generate bills on a month, fortnightly, or annual basis, the statement will come in helpful.
In most cases, a customer will receive a statement of account in addition to invoices for each purchase. Due to the recurring nature of the payments, all invoices and payments for a given customer may be viewed in one centralized location.
Since it helps business owners anticipate their customers’ recurrent costs, it can also be utilized as a payment reminder system. If this is the case, the company owner can send out advance payment reminders.
SOA also stands for Statement Of Advice.