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Official receipt template is a document that contains financial transactions used by firms. They are used for accounting and tax purposes. It is given by a service provider or seller to a buyer. it serves as a proof of transaction done.
Difference between invoice and standard receipt:
Invoice is a document given by a seller to a buyer. It indicates the cost of goods and services that the seller had given to the buyer. It is given to ask for payment of the described explained goods or services. On the other hand, a standard receipt is issued after payment has been made as a proof of money transaction.
Format of a receipt:
There are basic receipt sections that must appear in a standard receipt;
On the top right, center, or left part of this document, write the word receipt with uppercase letters. This assists in easy identification of a receipt.
This is the second section in most standard receipts. It should be placed on the side or in the middle of the receipt. They contain the company name, address, city, email, and phone number. Also, include the company/business logo in this part. You can place it on the top or adjacent to the details.
Date and receipt number:
This is most important information on receipt. Each receipt has a unique receipt number and the date when the transaction was made. These two are used to trace a given transaction easily.
Detail of customers is another primary part of a standard receipt. It has the name of the customer, address, email, and phone number.
Item billing box:
The itemized billing box contains rows and columns. The first, second, third, and the last column include the product description, the quality part, the unit price, and the total. On the total side of the billing box, below the last row, there is the subtotal of all the items, a discount row, and then the subtotal less discount. Furthermore, additional row is added for the tax rate and the tax payable. In the end, there is the total amount payable for the goods or services provided.
Affix the signature of the seller and the buyer. These signatures indicate the acceptance of the transaction by both parties.
The essential details and conditions that are not covered in the receipt are included in this section. For example, you can include the mode of payment.
The benefits of using a receipt:
- Record keeping: Both the seller and the buyer are used it for record-keeping. It acts proof of a money transaction.
- Easy creation of a financial statement: At the end of the day, month or even end of a financial year, receipts make the work of creating financial statements easy.
- Easy preparation of tax returns: You need to have all transaction receipts in order to prepare an accurate tax return statement. During tax returns, receipts act as support items.
In conclusion, an official receipt template is issued by a service provider or seller to a buyer. It serves as evidence that transaction has done. You should include all the essential details in the receipt.