Recording sales for your business is essential.
Whether providing professional services, selling products, collecting rent, or accepting donations, you need a reliable and secure way to document and record the payment received.
Without a receipt, the buyer and seller cannot establish or prove that an exchange of money occurred. Documenting your payments safeguards your business and minimizes any legal liabilities that may arise from not maintaining proper records.
What is a receipt?
A payment receipt is a document that confirms the transfer of money in a transaction. It also provides proof of a transaction that happened between a buyer and a seller.
A receipt is also known as a receipt for payment. Receipts can be provided on paper or as an online document. Businesses issue receipts for the following reasons:
- To confirm the customer’s ownership over the item that is sold
- To provide proof of partial or full payment in lieu of the products or services sold
- To give proof of sales for accounting, insurance, and tax purposes
- To minimize legal liability by confirming the transfer of ownership of the item
- To determine the delivery date of the service or product
What is the difference between an invoice and a receipt?
While an invoice and a receipt sound similar, they are significantly different in their nature and purpose.
An invoice is a commercial document that lists the goods or services sold to a customer for a specific transaction. The invoice is also known as a request for payment.
When any business sells its goods or services, it creates and sends invoices to its customers to track sales and request due payments. A sample invoice mentions the outstanding amount and the due date by which it must be paid.
A receipt is issued to customers as proof of their payment to a business.
Customers who make payments for goods and services retain receipts as proof of their payment. A typical receipt contains the date and amount of payment made.
How to write a receipt
Receipts do not have a set standard. Every business has its receipt template, which tend to vary in their content and writing style. Wondering how to write a receipt for your business? We have you covered.
There are various ways to issue a receipt to your clients. For example, for invoice tracking, many professional businesses use receipt templates, while others issue traditional handwritten or typed receipts.
- Paper receipts: If you prefer not to use receipt software, consider using a pre-printed receipt book from your local stationery outlet. Alternatively, there are many invoice receipt templates available online. Print out two copies of every receipt. While one copy can be kept for your business records, the other can be given to the client.
- Electronic receipts: For businesses with a global clientele, electronic or online receipts are a sustainable and convenient option. Companies can save admin time, send receipts to customers online, and automate the entire receipt management process.
Regardless of the method used to write a receipt, most receipts have some common elements, such as:
- Name of the business and contact information, including address, phone number, and email address
- A unique transaction reference number
- Date, month, and year of payment
- The total amount paid by the customer, broken down into applicable taxes, discounts, and net amount received by the business
- Method of payment such as cash, credit card, or other online payment apps
- Any outstanding amount if left to be paid by the customer
Most businesses use receipts daily, weekly, or monthly to record their transactions.
Whether receipts are used for inventory management, accounting purposes, reimbursements, or tax calculations, using premade receipt templates makes sense.
Besides saving tons of time, using standardized receipt templates helps reduce manual errors. Businesses can choose from different receipt templates to suit their needs and purpose.
- Payment receipt: Issued by a company to record sales transactions
- Delivery receipt: Given by a company to the customer, confirming delivery of the item sold
- Donation receipt: Issued by charities or non-profit organizations to acknowledge the money received for their cause by donors
- Rent receipt: Rent receipts are given by the landlord to their tenants when they make payment for their accommodation
- Petty cash receipt: Businesses use petty cash receipts to track smaller amounts of cash spent on miscellaneous expenses
- Professional receipt: Freelancers, service agencies, and small business owners send professional receipts to their clients for the specific services rendered to them
Wrike has a dedicated invoice tracking template to help you store, monitor, and manage your invoices. That way, you can keep track of all client information and vendor payments in one place.
Cashflow is the lifeblood of every business. To safeguard your business against avoidable legal liability, potential tax issues, or accounting errors, keeping accurate and timely records of all payments and receipts is essential.
When organizations reliably record business income and expenses, they can standardize project processes, eliminate cash leakage, and focus on maximizing ROI.
Stay on top of your expense management by registering deductible business expenses and getting your tax returns in order.
Get a free Wrike trial to streamline business operations, centralize receipts and invoice management, and grow your business successfully.