Regardless of whether you have ever created a receipt before, it is crucial to comprehend how to properly make one. In this guide, we will explain how you easily can create a receipt and what it should include.
You have sold an item and received a payment, which means you need to give them a receipt. But how do you make a receipt?
Whether you are a newcomer to business or you have been in it for some time, it is likely that you will wonder what information to include in your receipts and how to make one.
Let us start with some basics 👇
What is a receipt?
When you enter a store and buy a product, you have the right to a receipt for the purchase.
A receipt is a written document serving as evidence of a purchase. It is typically issued by a retailer and is often requested by customers for their records or to provide proof of warranty.
How to make a receipt
You can create receipts in several different ways. In most cases, the seller will receive the receipt directly from the point-of-sale system, but if you do not have a cash register system, there are alternatives.
Here are some of the most common ways of making receipts:
Build your own template: Many business owners create their own receipt templates in Google Docs, Microsoft Excel or Word. This is a cost-efficient alternative which also gives you complete control over the design of the receipt. The main downside, however, is that the unique reference number has to be set manually, which might result in human error. In fact, such templates are not legal to use in some markets.
Buy a receipt book: Receipt books with pre-printed reference numbers can be useful for businesses that do not have access to a POS system. They are easy to use and come at a low cost. There are, however, several limitations to using receipt books. It can, for instance, be more time-consuming to manually issue receipts. Additionally, transactions have to be manually entered into the accounting system, which is time-consuming.
Create a cash invoice: With a billing program, one can create cash invoices in seconds. A cash invoice is a document that proves that a sale has taken place and that you have received a cash payment. The main benefit of using invoicing software is that it saves you a lot of time. Records can easily be exported to your accounting system, and the risk of human error is minimal. A limitation, however, is that invoicing software often comes at a cost. Yet, there are some free alternatives, such as Conta.Create cash invoices with Conta – it’s free!
Is cash invoice the same as sales invoice?
Although invoice software can help you to create sales invoices and cash invoices, it is important to note that they are not the same thing.
- Sales invoices are issued to request payment for goods or services that have been provided.
- Cash invoices record that a sale has been made and that the customer paid in cash at the time of purchase.
3 things you should include in a receipt
When you have chosen your preferred method of creating receipts, you have got to make sure that they include everything they should.
Receipts must include:
- The name and organisation number of the business
- What you have sold
- Where the product or service was sold/delivered
- VAT (if applicable)
- Traceable receipt number
In addition, a receipt may include other information such as the name, address and organisation number of the buyer for accounting and tax purposes.
Here is an example of a receipt template that you can create in a spreadsheet program like Microsoft Excel or Google Sheets:
[Your business name]
[Address] – [Phone Number] – [Email]
Receipt NO.: [Receipt Number]
Date: [Date of Transaction]
Customer: [Customer Name]
[Item 1] [Quantity] x [Unit Price] = [Total]
[Item 2] [Quantity] x [Unit Price] = [Total]
Subtotal: [Total Cost of Items]
VAT ([VAT Rate]): [VAT Amount]
Total: [Total Cost]
Making a receipt: Putting it all together
We have covered a lot of information on receipts and cash invoices in this guide, and we understand if you feel overwhelmed. Let us make things simple and touch on the most important takeaways:
- The best way to make receipts is using a point-of-sale system, but for companies with few cash transactions, that might not be preferable as it can take a long time to set up and costs a lot.
- Cash invoices are a great alternative to receipts from POS systems. They are easy and cheap and easy to generate and meet all the requirements of the authorities when it comes to sales documentation.
- There is a great deal of information that has to be included in receipts. With invoicing software, such as Conta, you can feel sure that all mandatory information is included. Try Conta for free.
Are you looking for an easy and affordable way to create, send and manage cash invoices? Sign up for Conta’s free invoicing software.