Cash Receipt Forms: What Are They?

Cash receipt forms are important business documents used in the transfer of something with value. This form is commonly used in purchasing products and services. A cash receipt form is a blank form in which a merchant can fill it out with the needed information. It usually contains the merchant’s details used in the transaction such as complete name or business name, location, date of purchase, and contact information. Additionally, the cash receipt form also contains information on who the product or service is sold to, their address, mode of payment, and contain information. As the most important part of the form, a list of the purchased items is presented in the receipt’s body.

There were approximately 1800 and 1700 tax crimes investigated in 2018 and 2019 respectively according to an article posted by IRS on their official website. These crimes include tax evasion and tax frauds, which have a fine of up to $250,000 for individuals while $500,000 for corporations.

Based on an article by Chron, invoices and receipts are different. An invoice is a request for payment, while receipts are proof of purchase. Moreover, invoices commonly provide a list of goods or services provided by the seller along with the corresponding prices, credits, discount, taxes, and total due while receipts are a record that proves the existence of a transaction.

Meanwhile,  Turbo Tas suggested keeping the receipts of the following expenses if you want to lower taxable income and increase your potential for a tax refund: medical, childcare, unreimbursed work-related, self-employment, and other expenses.

Elements of Cash Receipt Forms

What does the word ‘receipt’ remind you of? Some think about the groceries they bought a few days back, while to some it reminds them of the monthly bills they have to pay. Because there are various transactions in which a receipt is used, it should be specifically made to be fitting. As there are different types of receipts, elements also vary. The list below is the common elements of a cash receipt form.

Title: To differentiate a receipt from an invoice or other similar forms, it needs to be properly labeled. The title of the cash receipt is usually placed at the top. It is written in bold fonts, so it is easily recognizable.Details: Details include the information of a merchant and a customer used during the transaction. These are complete name, business location/address, contact information, sale receipt number, and the date of purchase.Purchased Items: A table is present in the body of the receipt that lists the purchased items. This describes the product/service, unit price, and subtotal. Just below this table is the applicable tax, discount, and final total. Mode of Payment: It is important to indicate what mode of payment a customer used during the transaction in compliance with the Fair and Accurate Credit Transactions Act or FACTA.

How Do You Create a Cash Receipt Form?

Making a payment receipt is easier than you think. Use a template. to make it convenient. To begin, browse through our website and unveil a collection of ready-made business stencils. Continue reading below for more tips in creating a useful cash receipt form.

1. Choose a Template

Make sure to choose a template that is suitable for the transaction in which the receipt will be used. The advantage of using a template is that you are no longer required to start from scratch. It comes with a suggested content that you can modify using an editing tool.

2. Access an Editing Tool

Before accessing an editing tool, ensure it is compatible with your template. You will know whether you can work with an editing tool or not by checking on the template’s source website. Compatible editing tools are featured on the website.

3. Format Your Receipt Form

Open the editing tool and start editing the receipt template. Make sure it contains relevant elements and the information needed to complete a sales transaction. If you are having trouble with this one, try to refer online and look for sample receipts.

4. Do the Last Edit

Your cash receipt form is incomplete if you do not edit it. Although you can use the form right after you are finished with formatting, reviewing will ensure accuracy. Receipts are crucial business formats, so do not be complacent in creating one.

FAQs

How is a receipt different from an invoice?

According to Chron, invoices and receipts are different. An invoice is a request for payment, while receipts are proof of purchase. Moreover, invoices commonly provide a list of goods or services provided by the seller along with the corresponding prices, credits, discount, taxes, and total due. In short, the amount in an invoice is unpaid. On the other hand, a receipt is a record that proves the existence of a transaction. When a receipt is issued, it means that something of value and payment has been made to finalize a sale.

Why receipts are important?

Properly storing receipts and other business records is essential to your business. It monitors your business progress by helping you see how your business is doing. That is why Turbo Tas suggested keeping the receipts of the following expenses if you want to lower taxable income and increase your potential for a tax refund: medical, childcare, unreimbursed work-related, self-employment, and other expenses.

What are the different types of receipts?

  • Official Receipt
  • Business Receipt
  • Monthly Rent Receipt
  • Day Care Receipt
  • Medical Receipt
  • School Fee Receipt
  • Sale Receipt
  • Vehicle Receipt
  • Service Receipt
  • Payment Receipt

Receipts are not just evidence of the existence of a transaction. It is also the foundation of efficient record-keeping and a smooth taxation process. That is why it is easily considered an essential business form. For more templates of any kind, visit our website now!