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A cash receipt template is a statement of cash that is obtained in a cash sale transaction. It is usually made when a vendor accepts cash. Other than the vendor, a customer, an investor, or a bank can also accept cash.
The cash sale receipt is basically granted when money is taken from the customer. When a credit sale transaction occurs, it is taken to adjust the outstanding accounts receivable balance generated. Usually, a copy of this document is given to the customer. A copy is issued to track the sales and/or services offered. In case, the cash payment qualifies as a tax-deductible purchase then the customer requires this receipt while listing such deductibles on their income tax returns.
How to write a cash receipt?
It is important for any seller to know how to write a cash sale receipt. It is one key process that they should know about doing a cash sale transaction. Cash sale receipts commonly vary in content and style. Let us discuss below key components that must be mentioned in cash sale receipts;
The seller’s information
At first, you should include your seller’s information in the cash sale receipt. This includes the following;
- their/company name
- street address
- phone number
- email address
- Other important information that can assist in identifying them easily
Your cash sale receipt should have a clear and informative description of the offered item/service. It is important to include this information as at the same time this receipt can be used as proof of payment and transfer of ownership. This section should include the following information;
- The date of transaction: It is the date on which the transaction was completed. It should be included in the cash sale receipt. It indicates when the transaction took place. It also comes in handy in situations where a warranty is given for the product and/or services offered.
- Product/service details: You should include a clear and definitive product/service description in the cash sale receipt. This helps in distinguishing the product and/or services.
- Payment details: The name of the buyer, the amount paid, and a description of what the payment is made for is included here.
This section includes a section showing a breakdown of the payment made like;
- The subtotal,
- Tax rate,
- Total amount due,
- Amount paid and
- The remaining balance, if any.
This information is useful to calculate income tax returns and to keep track of installment payments.
In the cash sale receipt, you should also include the mode of payment. By exchanging physical cash, not all cash sales are made for an item/service. Thus, the mode of payments helps one in keeping their finances. Cash, electronic cash transfer, and more can be the mode of payment.
The receipt should have a space where the seller affixes their signature. This acknowledges that they gave out the goods/service and payment duly made. At the bottom of the receipt, the seller or their representative should print their name and sign against their name.
Accepting Cash Payment:
Security is very important while selling or buying an item with a cash sale transaction. The buyer and the seller should meet in a clear and secure location is highly recommended. You should follow the below steps to properly accept cash payments;
- At first, make a deal
- Then, exchange of goods and cash
- After exchanging, issue the cash receipt
- Finally, send the money electronically
In conclusion, a cash receipt template should include all the necessary information about the seller and the items/services offered. You should send cash sale receipt immediately when a sale has been completed. Additionally, there is no any standard format for creating this receipt.