Preparing and issuing receipts is an essential part of most businesses. As a business, you will need receipts to organize your financial records. They will help you identify the items you sold and the money you earned as payment from clients. On the other hand, customers will need it as it acts as proof of purchase or record-keeping.
That means you need to know how to prepare a receipt and the content you must include in it to complete it. With this in mind, it is best to use a template rather than handwriting a receipt on a piece of paper.
In this article, you will learn more about how to format a receipt template that benefits both you as a business owner and your customers.
Here are the different types of templates you can access for free on our website. You can use any template of your choice to create a receipt for each business situation:
A receipt is a proof of purchase document given to a customer or client by a business owner or supplier each time they sell a product or service.
It proves that the business sold a product or service and that the customer purchased the said item by paying for it. It must be provided at the point of sale.
It can either be in paper or electronic format. There are different types of receipts meant for different types of items or services. Although that is true, there are essential details that must be present in it, and they include the name and location of the business, date and time of the purchase, the number of items purchased, the price totals, taxes, and VAT, payment method and returns policy.
How long do you keep it?
On the part of the customer, it is their choice regarding how long they wish to keep their receipts. However, for a business, the IRS stipulates that you should keep your receipts for three years. If the business claims to have lost a tax year, it will need to keep the receipts of that year for seven years for reference purposes.
When to Use a Receipt?
As a business, you need to use a receipt when issuing it to a customer who just paid for a product or service they have purchased from you. This is meant for record-keeping for both you and the customer. Also, you will need to use it if you have issued an invoice to your customer and the required bill has been paid.
Apart from record keeping, you must prepare and use receipts to ensure you have proper business documentation and can easily file tax returns. Always make copies and store them in a safe place.
Receipt vs. Invoice vs. Quotation
A receipt, an invoice, and a quotation are three documents meant for different business situations but are sometimes confused with each other. To better understand these terms, a breakdown of each term’s meaning and what makes them different from a receipt are shown below:
A quotation is a document meant to provide to a customer with an estimation of what they will have to pay if they purchase a product or service. As a business, you will prepare a quotation for a client who wishes to know the cost they will incur if they proceed with a particular transition. Your customer is financially prepared for the transaction before the deal.
An invoice, on the other hand, is a very different document from a quotation. An invoice is a document prepared to provide a customer or client with a breakdown of the total amount they need to pay you for a product or service they purchased from you. This document is used to ask the client to pay their bill. It is meant to inform the client about the payment due, the payment method to be used, the deadline, and late payment fees.
In the case of the receipt, it is a document you give your customer once they have paid the required amount in full. It is meant to signify that a transaction has been completed. If a customer has only paid a partial amount, you can provide them with a type of receipt known as a cash receipt. This document will provide details of the amount paid and the expected balance.
Essentials of a Receipt
The following essential information must be present in all receipts:
Start with your business information for easier identification. This includes the business name, the complete mailing address, a working phone number, and your email address.
Proceed to include the date on which the receipt was prepared. If written accurately, this is best for proper bookkeeping.
You will need to include the receipt number for easier identification of the receipt.
Since the whole idea of a receipt is to act as proof of purchase, ensure that you include details of the amount received. The amount paid by a customer should be accurately and correctly written.
The transaction details, that is, what was purchased, must be included in it. In addition, you must include the goods or services your client purchased from you.
It must also include information about the payment method that the client used to make the payment. This may include cash, check, credit or debit card.
- Check number (if applicable): You must include the check number in it if a check was used to make a payment.
- Credit card details (if applicable): In case the client uses a credit card, ensure that it contains the credit card details, such as the card number.
Ensure you also highlight your return policy (or lack thereof) regarding the items bought. It would be best to inform the client of your business’s policies regarding returning unwanted merchandise that has already been purchased.
Signature of the seller and buyer
Finally, ensure that you include the spaces meant for signatures from both you, as the seller and the buyer (your customer or client).
How to Make a Receipt
When making a receipt, using a template is the best option. A template is a pre-built document that guides you on how to create the receipt you want. It contains essential information and can be modified to suit what you need. Since there are many different template options, you can choose a template that suits your situation, customize it and create a receipt for your customers.
With such proper recording, there are reduced chances of missing receipts, lack of receipts after a sale, and wrong details on them.
However, apart from using a template, you can also choose to create it on your own from scratch to add a more personal touch, as discussed below:
For a handwritten receipt, you will need to observe the following steps:
- Step 1: Start by buying a two-part carbonless receipt book or a receipt book with several sheets of reusable carbon paper. You can get it online or at an office supply store. With either receipt book, you will have pre-numbered booklets with receipt headings.
- Step 2: Proceed to write the receipt number and the date on the top right of the booklet.
- Step 3: The next step will include your name or company name and contact details on the top left of the booklet.
- Step 4: Make a list of the items purchased and what each item costs.
- Step 5: Write the items’ subtotal below the list you created.
- Step 6: The next step is to include taxes and other additional fees in the booklet. Then, proceed to add them to the subtotal to determine the total the customer should pay. Again, the taxes and additional charges should be listed on the left side and the costs on the right side of the receipt.
- Step 7: The final step is to include the payment method, which can be cash, check, or credit card, and the full name of your customer or client. Ensure that there is a signature from your customer in case they made a payment using a credit card. As this is the final step, ensure that you make a copy for your business records before handing the original receipt to your customer.
You can also choose to prepare a digital receipt instead of a handwritten one:
- You can use software to create a professional receipt: Get yourself either a paid or free receipt-generating software program. Choose one that suits your needs and set it up on your computer. Proceed to fill in the required details in it and allow the program to generate a receipt for your customer. With this program, you can always have a copy in your database for future reference.
- Use a POS system for highly accurate receipt management: If you are using a POS (Point of Sale) system to keep track of your expenses, sales, receipts, and for processing checks and credit cards payment, then the system can help you automatically generate a receipt for the customer at the point of sale. So pick a POS system online that suits your needs, download it to your computer, and allow it to generate automatic receipts for your customers every time a purchase is made.
Note: However, to avoid the hassle of handwriting or digitally creating receipts from scratch, it is best to use the template option. A template guarantees you accurate and consistent receipts for your customers. You can access these receipt templates for your ease from our website today. Our templates are easy to access, free to download, and can be customized to suit your brand.
A business receipt template is provided once a customer has purchased a product or service and payment has been made to the responsible company or business. This receipt is prepared and issued after the transaction is complete. Customers need to have it if they wish to request a refund or return the purchase and when they need to file their tax returns.
A blank receipt template is used by businesses that wish to create their payment receipt template. This template usually contains the main components found in a receipt template, such as the names of parties involved, the amount paid, the payment method, and the reason for payment.
Car (vehicle) receipt
A car receipt template is a proof of payment document for any issue that involves a car. This may include a car sale, rental, detailing, donation, wash, towing, an oil change, repair, parking, and even a down payment. This receipt is issued once the seller has been paid, the financing terms have been met, or a lease has been satisfied.
Cash payment receipt
A cash payment receipt template is meant to prepare a receipt for goods or services purchased using physical cash. With this receipt, there is proof of payment since the customer pays for their products using cash instead of electronically. You will need this template as it acts as the customer’s proof of purchase and payment for your business. Ensure that you remain with a copy of the receipt once you have given the original one to your customer.
A cleaning receipt template is usually issued to clients once they have paid for cleaning services such as carpet cleaning, dry cleaning, house cleaning, and window cleaning. Whether you provide residential or commercial cleaning services, ensure that you can access this template and use it to prepare a receipt for your customer. For example, a client might need the receipt for tax reports or maybe to demand a refund for poor services.
Credit card receipt
A credit card receipt template is a form that authorizes a third party to make a payment using someone else’s credit card. There should be written consent from the credit card owner, and the third party must have all the required credit card details. This form can be used for a one-time or recurring charge such as monthly rent, gym membership, etc.
A delivery receipt template is meant to acknowledge that payment was made after delivery was successful and the product reached the required destination. The products may include food, equipment, goods, animals, documents, and gifts. Your delivery person or company needs to understand that the receipt should only be provided once complete payment has been made.
A deposit receipt is meant for a payer who has made an incomplete payment to pay the remaining balance at a later time chosen by the seller. For example, with a deposit or down-payment, the seller expects the payer to complete the balance upon the agreed time and will provide this receipt to indicate that they received the deposit.
Based on the agreement between the two, the deposit can be refundable. This receipt is meant for situations such as a car (vehicle) down-payment, cat (kitten) deposit, boat deposit, dog (puppy) deposit, earnest money deposit, key deposit, photography deposit, real estate down payment, and security deposit (tenant).
A donation receipt template is a form that must be filled out by a charitable organization whenever they receive gifts valued at $250 or more. The individual who is donating this gift requires the receipt for a tax deduction. The gift can be cash, personal property, or even a vehicle. Annual donations from a single donor can also be detailed in e-receipt for easier deductions from their gross income.
Earnest money receipt
A seller of real estate prepares an earnest money deposit receipt once a purchase agreement has been entered with the buyer. After the deposit is made and the seller receives the funds, a deposit slip is given to the buyer, and an agreement is made. This receipt is provided to act as proof that the deposit was paid. In addition, it helps to guarantee that the seller will keep their word about not selling the property to anyone else and that the seller will get their property back if the purchase does not happen.
Event payment receipt
An event payment receipt is a document used as proof of purchase by guests or attendees who have purchased tickets to attend an event. This receipt is usually prepared by an event coordinator or the accounting department for events such as music/art/film festivals, seminars and conferences, product launches, conventions, banquets and balls, galas, and fairs.
Apart from just buying tickets, the receipt may contain details of other associated fees or services accessed by the attendee.
A hotel receipt template is meant to prepare a receipt for guests after they have paid their bills. It can be used by a private hotel, motel, inn, bed, and breakfast. This receipt usually includes the guest’s name, the room they stayed in, any extra amenities such as a mini-bar, food service, breakfast charges, parking fees and taxes, and the total bill to be paid by the hotel guest.
An itemized receipt template is a form that acts as proof of purchase by indicating the parties involved in a sale and an itemized list of each item that was sold. The list should include the description of the items, the number of items bought, the price per unit, the total for the items, and the tax/discount breakdown. Once the customer makes the required payment, the merchant should provide them with this receipt.
Medical bill receipt
A medical bill receipt is prepared in a medical institution such as the doctor’s office once a patient has made payment of an invoice. This receipt must contain information about the service(s) provided, the cost of each service, the medicine administered, and any other product used on the patient. This receipt is necessary for patients seeking compensation from their health insurance provider or tax records.
Paid (in-full) receipt
A paid (in-full) receipt form is a template meant to indicate that the money owed from a business transaction has been paid in full of no pending balances. This is different from a sales receipt that provides a breakdown of items sold and the total cost; this receipt template shows the payment made by a buyer. It is proof of payment that the customer should sign.
A rent receipt template is a form meant for a tenant to indicate that they have made their monthly rent, using physical cash, to their landlord. This form is only filled once the required funds have reached the landlord. The landlord should then issue the receipt to the tenant once they have filled in the required information.
A sales receipt template is meant to help you prepare receipts indicating the number of goods or services a vendor sold to the customer. It usually includes the number of items sold, the price of each product per unit, and in some States, a sales tax.
Security deposit receipt
A security deposit receipt is used by a landlord who has received payment for the security deposit from a tenant. The security deposit must be deposited in the landlord’s bank account as security for the rental building and returned to the tenant once the tenancy has ended. This receipt is required as it acts as proof of payment.
Keep in mind, if you are a landlord in the following States: Florida, Kentucky, Maryland, Massachusetts, Michigan, New Hampshire, New York, North Carolina, Maine (in the city of Portland only), Washington, and Washington D.C., you will need to prepare a security deposit receipt.
Taxi driver provides this receipt template to show the amount paid by their passengers, the distance they traveled, and the date and time when they traveled. A taxi receipt is essential in that passengers need them for tax purposes.
Frequently Asked Questions
How can I issue a receipt?
You can issue a receipt either by paper or electronically since receipts can be handwritten or typed. In the case of electronics, you can set up a built-in printer to produce receipts for you. Ensure you have software that automatically generates receipts once you have made a sale. This method of issuing receipts is faster, easier, and more popular in businesses today. This is because, once the receipt is generated, it is sent straight to the customer’s email.
In the case of paper, you can prepare a handwritten receipt in your receipt book and give it to your customer once a purchase is made. Ensure that you make two copies for yourself and the customer. Also, you can prepare a receipt using a template or in M.S. Word, fill in the required information, and print it out for the customer.
Do you need to keep all your receipts?
You need to keep a copy of all your receipts for a minimum of six years. This rule applies to all business documents, and a receipt is one of them. For VAT-registered businesses, ensure you have a copy of a valid VAT receipt.
How to scan a receipt?
You can scan a receipt using two ways, that is, either a mobile app or a physical scanner. With a mobile app such as WaveApp, Expensify, and iScanner, you can quickly scan a receipt and capture the details for record keeping. However, a physical scanner is more common and used by most businesses. With this method, you will lay down the receipt on a scanner, and the record can be saved on the computer.