How to write a receipt
A receipt is a simple enough document. So simple, that many people overlook its importance. Whether you have sold something or performed a service for someone, it is important to write out a receipt.
Even a scribbled note on a piece of scratch paper is better than nothing. But if you’d prefer to rise above the “better than nothing” category, learn what you should include to give your receipt more credibility. In the worst case scenario, you may need to verify a transaction in court.
Follow the steps below and you’ll learn how to write a receipt.
Business or personal?
If you are in business for yourself, receipts are extremely important. You’ll need them to document your income for local, state, and national government tax purposes. If you fit this category, invest in a book of receipts. A small pad of receipts can be purchased at your local office supply store. You can probably find them as well at discount stores.
The advantage of these pads is that you can keep a carbon for your own records. Even better are the carbonless paper that eliminates the need to remember to move the carbon paper with each receipt. You will have to remember to place a stiff cardboard behind each set of receipts. Otherwise, the information from the current one will be transferred to the next duplicate receipt.
If you only make an occasional sale or seldom perform a service that you charge for, there is no need to purchase any special forms. It is only necessary to include all the relevant information to give the receipt legal standing.
Small or large amount?
If only a small amount of money is changing hands, an informal note will do. Just be sure to include enough information to identify the item or service performed and the amount of money received.
The larger the purchase, the more important the details. If you are selling electronic equipment or large appliances, include identifying serial numbers.
A larger purchase also warrants a more official-looking document. Type or use your computer to produce a better receipt. No need to produce something that looks like a store form with lines and boxes. Just use the word processing function.
As an added precaution, make a photocopy of the receipt and check. You could even attach a photograph of the item. This is so easy to do with digital cameras and camera phones. If you think the transaction has the potential of series legal implications, get the form notarized and signed by all parties involved.
What to include
Here are some of the most important things to include. This list will vary depending on the nature of the transaction.
- Date
- Description of item or service (mention what is not included)
- Serial numbers, if any
- Names and contact info of parties involved
- Type of transaction (cash, check, money order, etc.)
- Number of check or money order
- Disclaimer (no implied guarantee)
- Signature of person receiving the money
If you sell more than one item or service, be sure to itemize. List each separately and indicate the price for each. If you are in business for yourself, you may have to figure in taxes.
Vehicles
One of the larger items you may have to deal with is an automobile or truck. In this case, you will also be dealing with state laws. Check with your local department of motor vehicles. They may have special requirements involving transfer of titles, registration, etc. Most states will need to know the amount of the transaction in order to collect sales taxes. They may even provide a form specifically for this purpose.
To the list above, add anything that your state requires. This certainly will require the VIN number and year, make, and model. You may want to add a description of the condition of the vehicle. Here again, the photo would be appropriate. A disclaimer would also come in handy. You will want to note that you are selling “as is,” with no stated or implied warranty.
Software & e-receipts
If you are dealing through emails, a copy of your email may be enough to satisfy the buyer.
For those of you perfectionists who want to be sure your receipt is on the up-and-up, you can check for software online. Freeware is available that allows you to download free software as needed. This provides the ultimate in a professional-looking receipt.
You may encounter a situation that could be facilitated by an online payment method. Paypal is one that is growing in popularity and new ones are popping up all the time. Paypal is free to sign up for and easy to use. If you request a payment online, you will have the needed documentation, which can be printed out if desired.
Use these methods if you anticipate repeat business. Be sure to check any new service with the Better Business Bureau. Not all of them are reliable.
Signed, sealed, and delivered
Taking a few minutes to produce a legitimate document can avoid headaches later on. Adapt your situation to the tips given above. It takes very little effort to write a receipt. The peace of mind it provides is well worth the time.
