In any business, documentation is necessary to establish internal control and provide proof that your business has gone through the transaction. Cash receipts play an important role in any business. It enables the owners to keep a record of transactions with date, payment, reason of the payment, and an individual who paid it.
A free cash receipt template will let you cover several receipts like general receipts, commodity receipts, or an itemized sale. It is provided just after the purchase of any item. These receipts can also be issued by one business to another or during a stock market transaction.
What Is a Cash Receipt?
A cash receipt is a document that gives proof of a successful transaction and delivery service. It involves the details of the cash received and paid during the whole transaction process. The original form of the payment receipt is given to the customer, while the other one is kept by the seller for accounting purposes.
The receipt of payment has all vital transaction details like the list of the items that a customer has bought, purchasing date, payable amount, other additional taxes, etc. A receipt can also be obtained from vendors, fellow businesses, and other providers.
Such receipts are important because they are used as evidence in most customer claims. Suppose a customer would like to return or exchange some items, then he should show the receipt sample for validity. It provides a spot to track the information of an individual who has made the payment, the total amount, and the reason for paying.
When Should You Issue a Cash Receipt?
In any business matter, cash receipts are important to provide documentation in order to protect both parties from any issues. It lists out all the purchased items so that if the customer wants to return any of them, the receipt will play an essential role.
Cash receipts forms are expected to be issued to every customer after a successful transaction. They are kind of business records that will be helpful for the tax returns. That is why it is suggested that there should be two copies of cash receipts for future references.
The general cash receipts are issued when a purchase is made by the customer. Similarly, you need to issue a rental receipt when each rent payment is paid. If it is not issued, then the tenant should request it to avoid any future misunderstandings.
What Does a Cash Receipt Contain?
Here are some important elements that the cash receipt form should contain.
- Seller Information: At the topmost section of the receipt, indicate the seller's name, company's name, store address and office, and contact.
- Time and Date of Issuance: It is necessary to add the time and date of the issuance of the receipt. It would be helpful when the customer wants to make any request regarding the purchase.
- Receipt Number: It is an important element in any cash receipt. If a customer asks for any exchange, you can check the eligibility by matching it with the store's copy.
- List of Purchased Items: A basic cash receipt always lists out all the purchased items with equivalent prices. Along with that, it shows the quantity of the items bought per product.
- Subtotal: You need to mention the subtotal by multiplying the unit price by its quantity.
- Additional Charges: For the total payable amount, there should be some additional charges. It includes taxes, discounts, or service charges.
- Payment Details: It will include the payment details with the mode of payment used by the customer.
A cash receipt is helpful when you want to keep track of all the customer's information, which will be beneficial for the business. You can use a receipt template to track the purchaser's name with the payment information. It is necessary if the customer wants to make any refund or make an exchange for their purchase.