As a merchant who deals with a variety of customers, you must use a cash receipt to easily track your goods or service sales. A cash receipt is also meant to help you track payments from clients by recording any complete or partial ones. Once the transaction is complete, both you and the client should have a receipt for your records.
As it is an important document, you need to keep it simple to benefit both you and your customers. For example, you can use a cash receipt template to prepare your receipts for single or multiple items. With a template, you can easily include the necessary information, including your details, the customer’s details, the goods or services provided, the payment made, and the payment date. A copy of the receipt must be provided to both the payee and the payer.
In this article, you will learn how to prepare and issue a cash receipt to a client or customer once the required business transaction has occurred.
Cash Receipt Templates
When you want to make a cash receipt, you can use MS Word or an online template. Both will give you a proper receipt to use for your business. However, using a cash receipt template will make the process easier. You can access these templates from our website today. Our templates are free to download, easy to use, and can be customized.
With a template, you will make your work easier and faster. Also, you can make several receipts using a single customized template, which means all your customers will have their receipts as soon as you receive the payment against a purchase. Another advantage of using a ready-made template is that your receipts will be consistent and professional. Use our free downloadable cash receipt templates today for your convenience!
Using a cash receipt is the best way for a business to interact with customers and guarantee that all of its financial dealings are properly recorded. This document is best used when your customer purchases your products using cash. A receipt proves that a specific item was purchased and that your client paid the required amount. Also, your customer can have proof of purchase and ownership.
When preparing this receipt, you can make a document in MS Word or use a free, downloadable template from our website. Keep it simple to benefit both you and the customer. You should include the payment date, the amount paid, your details, and your customer’s details. Using a cash receipt is an efficient way to record your business transactions.
Cash Receipt
A cash receipt is a billing document meant to prove that a good or service was provided and payment was made against it using physical currency or cash. A receipt is also useful in situations where there is no evidence of cash transactions, such as credit card payments.
As a merchant, you should have a copy of this cash receipt. It serves as a financial record for your company, proving that you were paid for the products you sold. You must also provide your customer with a copy of this document. That way, he or she will also have a financial document they can use to itemize deductions when filing their income tax returns.
When to Use a Cash Receipt?
There are instances when you should use this document for the benefit of your business and for your relationship with your customers. For example, a receipt is required after a purchase has been made from your business, especially if paid in cash. Therefore, if possible, it is best to print the document and give the customer the receipt immediately after you make the sale.
In other cases, after your customers have made a purchase, you can send them their receipts in PDF format through email. However, ensure that you prepare and send the receipts without delay, as they might require these billing documents for their financial records or for filing their tax returns.
Procedure to Accept a Cash Payment
If your customers are paying cash, you should deliver the goods or services and take the payment at the same time. This way, both you and your customers benefit from a smooth transaction. Do remember that with cash payments, there is no fee required for the transaction to be completed.
The procedure outlined below must be followed to accept cash and ensure your customers receive their ordered product(s):
Plan a deal
Start by making a deal with the prospective buyer. This is where the two of you should agree on the price and when the transaction should occur. For an immediate purchase, the transaction can happen immediately as it involves cash.
The seller provides the goods or items
After you have reached an agreement, the next step is for you to provide the necessary goods or services. You can choose to have the funds transferred before or after the product or service has been provided.
The buyer brings the cash
After that, the buyer should present the cash to you for providing the agreed-upon goods or services. Ensure that the cash given is the correct amount before finalizing the transaction.
Issue the receipt
Finally, after receiving the cash, you should prepare a receipt that contains information about the item or service and the amount of cash paid. Your customer or client would require the receipt as proof of the purchase and ownership, while you would require it as proof of payment.
Information to Include in a Cash Receipt
For your cash receipt to be complete and sufficient, you must include the information mentioned below.
Give a title to the receipt
Begin by giving your receipt a title. Make it simple and relevant to the products you sell or your business brand.
For example:
Receipt title: Makeup receipt
Identify the issuer
The receipt should include your information as the issuer. These details make it easy for anyone to identify you and your entity. Below are the details you should include in the receipt about your business.
- Company name: Mention your company’s name and ensure you write it in a complete manner. After that, you can add other supporting information.
- Street address: The address is essential, as clients might need your physical address to reach you easily.
- City, state, and zip code: Ensure the address details are complete by including the city, state, and zip code.
- Phone: At this point, add an active phone number to make it easier for people to reach out to your business.
- Email: Use an official email that people can use for communication
- Fax: If you have a fax number, you can include it in this section.
- Website: This is important for your business as people can explore and learn more about your products using the website.
For example:
Company Name: Zama Limited Company
Street Address: 23, Right Avenue
City, State, Zip code: Cain, Downtown 3333
Phone: 222 222 2222
Email: [email protected]
Fax: (222) 222 2222
Website: https://www.zamalimited.com
Date the document
Ensure that you include the date you prepared the receipt, as this document is intended to serve as proof of payment, purchase, and ownership. Ensure you fill in the date in the following order: month, day, and year. This date will show when the money was received after making a sale.
For example:
Date: 07/17/2022
Provide receipt number
Ensure that you include the receipt number for more accessible documentation and reference in the future. Also, with a receipt number, you can identify your documents once they are placed in a filing system.
For example:
Receipt No.: 2222
Payment information
The following section involves payment information.
- Name of the payer: The payer’s official name should be written in full for easier identification.
- Amount paid in words and dollars: Ensure that the amount is accurately mentioned to avoid confusion. It is essential to write it both in words and numerically. The dollar sign should be included in front of the numerical representation.
- Item purchased: This is the description of the item or service that was purchased.
- Subtotal inclusive of taxes: The final payment information is a total amount that is a breakdown of the items or services purchased and the taxes. This information is vital for the client to maintain their financial transaction records.
For example:
Name of the payer: Elizabeth Bath
Amount in words and dollars: Three thousand, five hundred dollars ($3,500)
Paid for: Facial Treatment
Subtotal inclusive of taxes: $4000
Authorized signatures of the payee
Finally, include authorized signatures to confirm that you received the required cash payment. For example, a company representative or payee can include their printed name and signature.
For example:
Name: Dominic Wentworth
(Signature)
Frequently Asked Questions
How do you write a receipt for a cash payment?
The information to provide in a receipt for a cash payment include the seller’s information, the purchase date, the receipt number, the customer’s information, the amount paid in both words and figures, and a description of the goods or services rendered. In addition, the subtotal with tax, the total amount paid, and the total amount due/remaining balance should also feature in the cash payment receipt and the seller’s signature.
What is a miscellaneous cash receipt?
A miscellaneous cash receipt is used for the receipt of money and payments that are not classified as sales in the traditional sense. For example, it includes receipts for salaries, rents, property transfers, and other payments that do not fall under the business’s accounts receivables (your customer’s balances).
Who should sign a cash receipt?
The person receiving the cash payment should sign the receipt to indicate that they received the money and that goods or services were delivered to the customer. Remember that this signature must be valid for the receipt to be legitimate proof of purchase.