Business receipts

A business receipt serves as a record of a transaction between an individual and a business or two businesses. It’s given to the payer after they’ve completed the transaction, which includes making payment for the goods or service. It’s different from an invoice - a business document that requests payment. If the customer has an issue with the product or service, they must present their receipt in order to exchange it or get a refund. With that being said, refund policies are subject to the regulations of the company. It’s also used for tax purposes to verify purchases. 

Business receipt template

Business receipts

The importance of receipts

All businesses operating in the United States are required to store receipts of transactions (both purchases and sales) as part of the record-keeping transaction. The majority of receipts in this day and age are stored electronically as part of the payment processing tool used (even in physical stores). At the end of the quarter or year, this will form the basis of the tax payments the business makes. At the same time, a receipt should be given to the customer after payment but that can be emailed to them as well. 

According to the IRS, receipts must be kept for a minimum of three years. If the business claims a loss on their tax returns then they must keep those receipts for a minimum of seven years. Again, this is straightforward these days because receipts are stored electronically within your own database or the database of your payment processor tool. Pulling receipts for a certain period is as simple as establishing search criteria. 

Drafting a business receipt 

A receipt has a few elements that need to be present before it can be considered valid. First, is the information of the payee which will be in the header. Secondly, is the transaction number which is also known as the receipt number. 

The third area that will be filled is a breakdown of what was purchased, how many, and the individual price. For example, if someone buys four speakers, you’ll fill in the quantify field with a 4, the description of the item (in this case the make and model of the speaker), the price per one speaker, and the total cost. 

The fourth area includes the subtotal, the tax percentage, the applicable tax amount, the total amount due, and the amount paid. In the fifth area, you’ll include the details of the customer. In the sixth area, you’ll add the payment method they used. 

Finally, the business and the customer will sign the document.

Download our free business receipt in an instant to create a legally binding document.

Download our free business receipt in an instant to create a legally binding document.

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