Receipts are the most common documents used in commercial activities. Whether you receive an item or make a payment, you must get a receipt as proof that the transaction was completed.
Whether it’s a Goodwill donation receipt, a sales or delivery receipt, they all have the same purpose. And they can be issued in an electronic form or on paper. Most businesses use a receipt template when they create this document to make sure it has the right form and content.
What Is a Receipt?
The receipt is the document that acknowledges that a transaction has been completed. It can mean a delivery was made, or a donation was received, a payment was made for an object or a service, or any other commercial activity.
Receipts are crucial for both parties involved in that transaction; if it’s a purchase, the seller needs to keep it for accounting reports, and the buyer needs it for warranty issues. If it’s a donation, you need to keep the receipt to get tax deductions.
No matter what it’s used for, the receipt is an essential document that should be carefully drafted and kept.
What Is the Difference Between Receipt and Invoice?
The receipt and the invoice have many elements in common; they both describe the commercial transaction, the object or service that is sold, and the price. But the two documents don’t have the same purpose and are issued at different times during the purchase process.
The invoice is issued before the payment is made; it shows exactly the items sold, the quantity, and the total price so that the client can use the invoice to make the correct payment.
On the other hand, the seller only issues the receipt after the payment was made, as proof that they have received the money.
What Are the Basic Components of a Receipt Template?
The receipt template is highly used in all types of businesses, as it’s a versatile form used to create every type of receipt a business may need. Whether it’s a sales receipt template, a receipt book template, or a donation receipt template, they are all widespread and easy to use.
Small businesses must be especially careful about keeping an accurate record of the transactions, so they appreciate a receipt template even more. Whether you get the receipt from a supermarket cashier or a landlord, the receipt template they use must have the following sections:
- Identifying information of the company or person that receives the payment.
- Identifying information of the person who makes the payment.
- The date of the payment.
- The receipt number.
- The amount of the payment.
- What the payment was made for.
- The payment method (cash, credit card, etc.).
- The signature of the person who received the payment.
We use receipts almost every day since all commercial activities need proof of completion and payment. That makes the receipt one of the most popular documents.
Even if it is a straightforward form, it’s still best to create it using a receipt template, to make sure it’s complete and that it looks professional. CocoSign has all the templates you may need, for all types of documents, including a very efficient receipt template.