A cash receipt is a document issued at the close of a sale, which lists all the items or services purchased. These are most common between customers and a business, but they can also be issued between businesses, when one business purchases goods or services from another.
How is a Cash Receipt Used?
The cash receipt specifically documents the cash received for good and services. In most cases, this means that the items or services purchased, along with taxes and other additional fees, will be listed on the cash receipt so there is no confusion between the business and the customer.
For customers, cash receipts are a documentation of how much the person or business paid for what goods or services. These documents can be used to keep track of tax deductible expenses, items for reimbursement, or general personal expenses, among others.
For businesses, a copy of the cash receipt is used to keep track of inventory and cash flow into the business. These items are used to help tally daily sales records, so the business can keep track of long-term trends for cash flow in and out of the business, as well as which items are the most popular.
Why Should I Use a Cash Receipt Template?
If you are getting started with your business, a free cash receipt template will help you keep track of customers’ items and their prices. Copies of these documents will be important for you, your customers, and the IRS, so carefully consider what type of cash receipts you need to use. Download a free template to see how well the format works for your business and get started today!