Almost all businesses deal with a cash receipt. As a business owner, you keep receiving cash payments from customers. As you receive cash payments, you know the importance of recording the information on receipts in your financial books. To ensure the accuracy of your records, make the most out of these documents.
What is a cash receipt?
A cash receipt comes into play when a business or person receives cash from a customer, bank or an investor. You need to have this document when the money received from the customer offsets the generated accounts receivable balance when a sale transaction occurs.
Businesses run in various ways. Some sell products or services on credit while some need upfront cash payment upon the sale of an item or service. No matter what type of transaction occurs, you need a receipt template when a customer provides cash or a check as payment.
What to include in a cash receipt?
The customers in your business need a receipt and as a business owner, you need the receipt to keep track of everything you have sold. Using a template makes it easier to create receipts for customers who generally pay cash. An Excel receipt template is relatively simple and usually includes the following:
- The date when you received the payments
- The name of the customer who gave the payment
- The payment amount
- The purpose of the payment
- The name of the person who received the payment
If you have a business that deals with a lot of transactions, record-keeping becomes a major problem. You always have to indicate the purpose of the receipt is for and the date of the transaction. You also have to meticulously specify taxes paid and any amounts owed in your financial records.
Using the receipt properly
Now that you know what a cash receipt template is and its importance in your business, the next thing to learn is how to use these receipts properly. The following steps can guide you:
- Make a cash sale
This is the first step before you record your receipts. When making a cash sale, you need to keep the fillable cash receipt template as this is the only proof that a transaction took place. If your client paid with a check, make sure to include the number of the check. You can make your books as accurate as possible by organizing your receipts using an organized system.
- Record the transaction
Most businesses keep receipts plus a sales journal to record cash transactions in chronological order. Using your receipts, enter each of the cash transactions into the journal. Only record the sales tax collected in your sales journal.
- Create a sales entry
Recorded your cash sales in a sales journal and your credit or debit sales in your cash receipt journal. The entries may vary depending on the mode of payment of your customers like when you offer credit or if your customers use different payment methods. For example, if they opt to pay part credit and part cash.
How to fill out a money receipt?
In its simplest meaning, a money receipt is a verifying document that someone has paid cash in exchange for either services or goods. You can use this as proof of ownership of the item, an acknowledgment that someone has paid their debt to you.
Clients can use it to claim compensation for damaged goods under the specific conditions set by your business. Following are the steps to fill out a money receipt:
- Place a sheet of carbon paper between the receipts
Position the carbon paper between the original and the copy. The latter stays in your receipt book after you have torn the original receipt off to give to your customer. Make sure that you capture the receipt details clearly in the carbon copy.
You will use this for future reconciliations and for reference when you report sales, file taxation, and auditing. Fill in the name of your client who made the purchase in the proper space and add the date.
- Write down the necessary information
This is where you will write the list of goods sold or services rendered under the receipt’s item section. Make sure to indicate the number of items bought and their individual cost under the sections for quantity, and price respectively.
- Compute the grand total
Sum up all of the total costs of all services or items provided. Write the grand total in the “Total” section of the receipt. Make sure the total amount is complete.
This means that you must include the currency sign and the complete amount – even the cents. Not entering the correct total, specifically the cents or the currency sign, might render the information in your receipt incomplete.
- Confirm whether your client will make the payment in full or partial
Indicate whether the client made the payment in full or if they have only given a partial payment. In the case of the latter, subtract the partial payment amount to the total amount in the receipt. Write down the difference to indicate this as an outstanding balance.
Also, indicate the client’s chosen mode of payment – whether in cash or check. Before signing or stamping the receipt, you must first verify all of the information to ensure that they’re correct.
How to get cash back without a receipt?
As a customer, you should be very careful when handling a cash receipt. Losing this can be very difficult, especially if you’re trying to get your money back. Still, there are ways for you to do this. Consider the following tips to help you out:
- Check the policies of the store
Before you start any action, first check the store’s return policy so you have an idea of what you will deal with. Fortunately, many stores aren’t too strict when it comes to having a receipt to get your money back. If so, it might save you a lot of time when you know that you can simply walk into the store and return an item.
- Return the item as soon as possible
You can get the best results when returning an item to get your money back if you do it sooner. This is especially true for stores that have a policy about returning items within a specified period of time after purchase.