Receipt

What is a receipt?

A receipt is a document that confirms payment has been made. It serves as proof of the transaction for both you and your client. While an invoice requests payment, a receipt confirms payment was received. Receipts are important for record-keeping, expense tracking, and tax purposes.

What should a receipt include?

A complete receipt typically includes:

• Your business details — Name, address, contact information
• Client details — Who made the payment
• Receipt number — Unique identifier for tracking
• Date — When payment was received
• Description — What was paid for
• Amount paid — The payment amount
• Payment method — Cash, check, card, transfer, etc.
• Reference — Related invoice number if applicable

Receipt vs. invoice

An invoice is sent before payment to request money owed. A receipt is sent after payment to confirm money received. Some businesses send both; others mark the invoice as paid and use that as the receipt. Either approach works as long as there's clear documentation.

When to provide receipts

Always provide receipts when clients pay cash (no other paper trail exists), when clients request them for their records, for any transaction where proof of payment might be needed, and when required by law for certain transaction types.