This term signifies the outstanding amount from a previous billing cycle that is carried over to the current billing statement. It represents the sum of all unpaid charges, including any applicable fees or interest, from the preceding period. For example, if a customer’s previous statement showed $100 due and no payment was made, that $100 would appear as the outstanding figure on the new statement.
This concept streamlines account management by providing a clear starting point for each new billing period. It offers transparency, allowing customers to easily track their payment history and identify any discrepancies. Historically, this method has been fundamental to accounting practices, ensuring continuity in financial record-keeping across various sectors, from retail to banking.
