Business is the most important thing in the current world. And for doing business, we need so many documents and details for each and every decision. One can not just do business with their partners or their customers without properly maintaining a specific documentation process. There are different processes for each business. But for the customer, there is a very common way for documentations.
Invoice and receipts are most using things in the business life cycle. These two are so important for the business that you can not ignore. Today I will take a brief look at the receipt form and try to give you the most precise information about what this receipt form and why you should use it.
The best describes of the receipt form
A receipt form is proof of a payment for a particular service or product. The seller normally issues it for getting paid in cash. It represents that a customer receives the products or services from any business. Typically not all companies are given the receipt to their customers, but some businesses need to give it to their customers.
The receipt is often given to the customer who purchases on cash from a business or any online e-Commerce shop. This receipt can be either electronic or sometimes manual. Some companies also give their customers some handwritten receipts for their services. Sometimes receipts are sent to the customer’s email immediately after completing the purchase.
A receipt is payment proof, which is very important from the customer’s point of view. Because if any customer wants to change or return his product, he may need this receipt to get this exchange offer. A receipt has details about changing the product if the customer faces any issues with the product. Without the receipt, the business will not take or give any support to the customer. So it is so important to keep the receipt carefully for both customers and business owners.
Best way to write a receipt
A receipt is very easy to prepare compared to other payment options. What is your business and how do you operate your business defines your necessity of receipt. Most companies use invoices for their business, but you may also need a receipt. It is a short form of payment proof that does not require any specific numbers or customer identifications. But some details should have in your receipt which are:
- Name of your business or personal name or logo or company details like a phone number
- The date of sale or services
- Details of products and services like sales quantity
- Write out all the price of each service and products that sold
- Details of the paid amount including sales tax or any coupons or fees
You can also add the return policy or payment information into your receipt form. It is very helpful to have a clear return policy because the customer may need to change a product. Your company receipt should be more detailed about your services and systems. Now you must decide according to your business. Decide the way you will use the invoice and the receipt. Your customer and your business interest is the main thing to determine what you will use and when will you use the receipt.
Different types of receipts?
There are different types of receipts for different kinds of needs. All of them are named and functioned differently. On an accounting page, all the receipts have different names; some of them are:
- Sales receipts: for all the sales information of the company
- Purchase receipts: for all the purchases information and transactions
- Travel receipts: for all the travels expenses like daily allowance
- Hotel receipts: for all the hotel receipts like hotel expenses
- Expense receipts: for all the cost of expenses
- Salary receipts: for salary calculating
- Vat summary: for all the vat related issues
Invoice Vs Receipt
In our daily business, we mostly use invoices and receipts. Both of these are a form of transaction slips but not interchangeable with each other. Invoice is mostly used for demanding payment from a customer who already gets the product and services whereas a receipt is payment proof of a product or services.
In the business, you can not give an invoice to everyone. You can only provide an invoice when you provide a service or product to a customer who buys the product or service on credit. An invoice is a request for payment who already gets the product or services. You can give an invoice by email or mail or any other options that you prefer.
An invoice is a method where all the business and transaction details are recorded. For example, details of the products, unit prices, payment options, date of invoice, the sellers’ contact information, and buyers are all included in an invoice.
On the other hand, a receipt is the proof of payment for a particular product and service. It includes the details of the products, price, units, and payment options. It can also include the details of the return policy of that product and service.
Both invoice and receipt are common practice to use but have some little differences which are
- Invoice use for asking for payment from a customer. Generally, customers get an invoice after getting the product or services.
- A receipt is a payment proof for products or services. Usually customers get a receipt when they paid for the product and service.
In most cases, a customer who gets an invoice also can get receipts when he pays his dues. But a customer who pays on sale can only get receipts only.
Why is it important for bookkeeping?
In the accounting terms, without having a receipt of the transaction it is not recognized as a transaction. So it is very important to have a receipt for any kind of business transaction for future proof and flawless accounting and tax results.
Receipts data should be written in a chronological order to find out quickly, which helps a lot in the future for tax or any further issues. It is boring work, but it helps a lot with business growth.
Why Should You Always Ask for an Official Receipt?
It is not very uncommon to have a receipt for any purchase. Rather it is very common for all but still, you should always ask for the receipt because.
- Deduction or refund: if you have the receipt, you can officially claim any refund or deduction for your purchase. It is your official proof for purchasing any things.
- Decreases Tax Payments: this is another important reason that you should always ask for the receipts. These receipts can be used as expenses that will lower your tax payments.
- Hard evidence: this is the most crucial reason that you should ask for receipts. It gives you the evidence that you paid for products or services.
Finally, the receipt form is an important piece of documents that a customer can get from a business owner. But both buyers and sellers have equal importance to this paper because a seller can easily track his entire sells item easily and a buyer can easily claim any of this dispute after getting the product from the business owner.