In general, a receipt is a document detailing a payment transaction. Receipts can feature details including the goods or services paid for, applied taxes, gratuity, and anything else the seller needs the purchaser to know for legal reasons. These documents finalize, officially, the sale of products or services, and serves as a buyer’s proof of payment.
Most people are familiar with receipts from stores or restaurants, which outline specifically what the purchaser paid for, along with taxes, applied discounts, and, in some restaurants, the tip. Receipts specifically show that the item or service has been paid for, and how much, making receipts different from invoices, which outline the goods or services that have yet to be paid for. For example, the bill presented at a restaurant after the meal is technically an invoice; once the diner pays for the meal, the waiter brings back the receipt, which often has a merchant copy and a customer copy.
Business receipts and sales receipts are often interchangeable; however, in many cases, business receipts are sent between businesses that pay each other for goods or services, much like an invoice. Unlike invoices, receipts are not a request for payment, but a record of payment – therefore, a business receipt is a record of payment for goods or services. This could be in addition to an invoice, to note when the invoice was paid and how much money was exchanged for what products.
How to Use a Business Receipt
If a purchased item is faulty or defective, the business that paid for the product may use the receipt to return the product to the manufacturer or vendor. For example, if an office supply store receives a shipment of copy paper that does not retain ink, then the store can use their business receipt to demand a refund or some other recourse from their supplier. Since the receipt is proof that money has already changed hands for the goods or services, business can use these documents to prove when they need refunds and why with their suppliers or manufacturers.
Accounting departments for businesses also use business receipts as part of the balance sheets for the business as a whole. Whether the business issues quarterly or annual reports, business receipts keep track of how much money is spent on operations for the business.
Online receipts are becoming more common as merchants move stores into the digital realm. These documents should be stored by the merchant in a database so they can track the customer’s payment, receipt of the good or service, and any complaints, refunds, discounts, or extra charges. A copy of the receipt should be emailed to the customer, either in the body of the email or as a separate text document. For individuals, this can take the form of an emailed receipt; many businesses, however, still use faxes or mailed invoices and receipts for redundancy.
Why Should I Use a Business Receipt Template?
If you have just started a business, a business receipt template can help you keep track of information that vendors, suppliers, or manufacturers need from you after you have paid for their goods, or vice versa. Using a template can also maintain a professional appearance because the information has a clear layout that is repeated every time you create a business receipt. Download our free business receipt templates today to get started!