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Cash receipt template: what it is
A receipt is the seller's written confirmation that a payment was received: who paid, how much, when, how, and what it settles. A signed record of cash handed over.
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Example: a filled cash receipt
- The title says what the document is: a receipt.
- A unique number from a continuous series, allocated when you issue it.
- Your business name and address, and tax number if registered.
- Who it is for.
- Each line: description, quantity, rate and amount.
- Tax by rate.
- Amount received.
Worked example: the numbers behind the receipt above
| Item | Qty | Rate | Amount | Tax |
|---|---|---|---|---|
| Maths tutoring, 4 one-hour sessions in September, paid in cash | 4 | $45.00 | $180.00 | $0.00 |
| Subtotal | $180.00 | $0.00 | ||
| Total | $180.00 | |||
No tax is charged on these lines, so the total equals the value of the supply.
How to fill in the cash receipt
- Enter your business as the receiver.
- Add the name of the person who paid.
- Describe what the cash was for, with the amount.
- Add the amount in words and the receiver's name in the notes, then save.
Cash receipt checklist
- Receipt number
- Date
- Received from: the payer's name
- Amount in figures and in words
- What the payment was for
- Balance remaining, if it was a part payment
- Name and signature of the person who received the cash
Handling cash safely
Issue receipts in number order and never reuse a number. Count the cash in front of the payer, bank it promptly, and reconcile receipts against deposits each week. Gaps in the numbering, or deposits that do not match the receipts, are the first thing an auditor looks for.
What to put on a receipt, field by field
| Field | What to enter |
|---|---|
| Document title | Say exactly what it is: "Receipt". The title tells the buyer and the tax authority how to treat it. |
| Number and date | A unique number in a continuous series and the issue date. LuckPanda allocates the number when you issue. |
| Your business | Name, address, and tax ID if your state or client needs it |
| Customer | Who paid: name, and address if the receipt supports a claim |
| Lines | Description, quantity, unit and rate. Each line carries its own tax rate. |
| Tax | Sales tax where you must collect it, at the rate for the delivery address. |
| Totals | Amount received, the payment method and reference, and any balance still due. |
| Terms | The invoice or period this payment settles. |
United States rules for a receipt
- Keep receipts with your records for at least three years after filing (longer for property and employment records).
Mistakes to avoid
- Not saying which invoice or period the payment settles.
- Issuing a receipt before the money has cleared.
- Leaving out the payment method and reference.
- Writing receipts by hand with no copy kept.
Receipt vs other sales documents
| Document | When | Asks for payment | Tax document | In the books |
|---|---|---|---|---|
| Quotation / estimate | Before the order | No | No | No |
| Proforma invoice | After the order, before supply | Advance only | No | No |
| Invoice / tax invoice | On supply | Yes | Yes | Yes: sale and receivable |
| Receipt | When paid | No, confirms payment | No (receipt voucher for advances in India) | Yes: payment |
| Credit note | After an invoice, to reduce it | No, reduces what is owed | Yes | Yes: reverses part of the sale |
Questions people ask
Why write the amount in words?
Words are harder to alter than figures. If the two ever disagree, the words are normally taken as correct.
Are there rules for large cash payments?
In the US, a business that receives more than $10,000 in cash in one transaction or related transactions must file IRS Form 8300 within 15 days. Some countries ban large cash receipts outright: in India, receiving ₹2 lakh or more in cash for a single transaction is prohibited.
Should both people sign?
The receiver signs to acknowledge payment. The payer's signature is optional but useful for larger sums.