Writing receipts is a process which many businesses will need to do, for their own and their customer’s records.Receipts vary in their content and style and there is no set standard.
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What is a receipt?
A receipt is a document which is provided by a business to its customers every time a product or service is sold. It its a buyer’s proof of purchase.
Typically it will show:
- the date and time of the purchase
- the number of items purchased and price totals
- the name and location of the business the items have been bought from
- Any VAT charged
- method of payment
- returns policy.
It is usuallysupplied at point of sale in eitherpaper or electronic format.
When do I need to issue a receipt?
It is advisable for a business to issue some form of receipt to all customers. This issupplied whenever a customer pays for goods or services offered by abusiness.A receipt could besimply signing and dating an invoice to show that it has been paid.
A receipt is also important documentation for maintaining your business records and preparingyour tax returns, so it is vitalyou keep copies of thesefiled away safely.
What information must I put on a receipt?
If you sell a product or service thereceipt you provide to your customershould containthe following:
- your company’s details includingname, address, phone number and/or email address
- the date of transaction showing date, month and year
- a list of products or services showing a brief description of theproduct andquantity sold
- the amount of the transaction withthe total amount broken down down to show thenet amount, VAT (if VAT has been added)and any discounts
- the method of payment – ie cash, credit or debit card etc.
How can I make a receipt?
There are various ways a receipt can be issued.A receipt can be issued on paper or electronically. It can be handwritten or typed.
Electronically
Many small cash register contain built-in printers for producingreceipts. They also have software that allows you to programme tax rates and codes straight into the register, so all the calculations are done automatically.
Also, digital receipts are an option – this method of supplying a receipt isbecoming increasing more popular. Once produced, the receipt isemailed straight to the customer. Pre-accounting tools such as Receipt Bankoffer this option and are free to trial. It’s a good choice if you’re looking to reduce the time you spend on admin.
Paper
If you don’t have software to produce a digital receipt, then a handwritten receipt will work just as well. A receipt book can be purchased easily from astationers and usually offers two copies per receipt (one for the customer, the other for your records). Alternatively, there are plenty ofreceipttemplates availableonline that you can download to useor you cancreateyour own template from scratch, inMicrosoftWord for example.
Do I need to keep a copy of all receipts?
It is advisable to keep records of all receipts for the same length of time as other business documents are retained(which is a minimum of six years).
If your business is registered for VAT you will need a copy of a valid VAT receipt when you come to claiming back the VAT.
Interactive tutorial: Recording income
The step-by-step guide takesyou through:
- Types of income
- Documents used when goods or services are sold
- Different payment methods
- VAT – including limits and registration.
Click on the Start button below to read more.
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