Receipts are a part of everyday transactions in a business. They form part of important documents needed in making financial statements and reports. Some, like the policy receipt, are used as verification in documenting company policy. Other examples, such as the deposit receipt, will show you how certain receipts are structured and what information they contain.
Feel free to scroll down and take a closer look at the samples. All are available for free download in Excel formats (.xl, .xlsx), so they are fully and easily customized as well.
An acknowledgement receipt is a document that verifies acceptance of having received a product or service receipt. This acknowledgement is signified by the recipient’s signature in an invoice, delivery receipt, or other forms. The same can be said to that of a cash receipt. It is an acknowledgement of having received an amount of money for a sale of a product or service.
In making receipts, the following basic items must be present:
All the items mentioned above make up for the basic information needed to be in a receipt. Other information may be added or be under the discretion of the vendor or at the request of the buyer. Receipts are after all a form of proof of purchase and may be used as evidence in any legal proceeding if needed.
For most, printing or handing out receipts is time consuming and just plainly a waste of precious time. However, management still requires it and employees have no choice but to abide by the company rules.
Why do they do it?
First and foremost would be for audit reasons. Internal and external auditors require original receipts in processing or conducting an audit. The receipts that are either for expense or sale are accounted for and the company’s current state of account would be known.
Receipts are also needed in the making of financial statements and reports. Balance sheets needed for financial statements need information that can be gathered from receipts for expense or sales of the company or business. Receipts truly hold importance in evaluating the current state a business is in.
In doing basic documentation for all transactions done in the company, a receipt represents valid proof of a transaction whether it be a purchase or a sale. A receipt therefore acts as a record or hard evidence of each transaction made during the course of the business.
For all business filing for annual taxes, proof of expenses must be presented to back up operational expense claims. Receipts hold evidence of such transactions or expenses. These are then deducted to the total sales and then computed for taxation.
For product returns or warranty claims, receipts have to be presented in order for such claims to be considered valid. Important information contained in a receipt validates a claim in connection to the reasons behind the claim.
Many nonprofit organizations receive donations on a regular basis. Here comes the dilemma of issuing a donation receipt. Donation receipts are important because donors use the receipts to claim deductions to their personal tax receipt.
Basically, a donation receipt should include or cover the following items:
At best, donation receipts exist to validate any donation made and to support the claims for donors in their personal tax records. Refer to the additional samples in the page for more information.
Invoice and receipts have both been used interchangeably in daily business activities. But what really is the difference between the two?
To start off, an invoice and a receipt are strangely similar because
Their primary differences include the following:
Receipt examples in PDF may provide additional information regarding receipts. Comparing them to invoice examples shown in another part of this site which also contains examples may prove helpful in identifying the key differences between the two.
