What is a cash receipt, and how do you create one?

When customers pay in cash, you need a special receipt to show that a cash transaction has taken place. Learn how to make a cash receipt to track your business transactions accurately.

Cash is king. Well, it used to be, but some customers still like to pay in cash, even in this modern card-driven age. If a customer does pay in cash, it requires a special type of receipt to acknowledge that a specific amount of cash has been received. Here’s how to make a receipt for a cash payment.

Definition of a cash receipt.

A cash receipt is a document that shows evidence of a cash transaction. It should show the specific amount transferred between the parties and an itemized list of goods and services provided. The transaction should also be mentioned as being processed in cash and not through a credit card, bank transfer, or any other digital means.

Other than stating that the transaction was processed in cash, there’s really no other difference between a cash receipt and any other receipt.

How to use a receipt for cash payment.

What makes a cash receipt different from a credit card receipt, for example, is that you should print three receipts during a cash transaction. The first receipt should go to the customer, the second receipt copy should be filed in your records, and the third copy (which is unique to cash transactions) should accompany the deposit when you take the cash to the bank.

Obviously, digital transactions don’t need the third receipt to accompany the deposit because they’re deposited directly into the bank. Only cash payments need the extra step.

When to use a cash receipt.

As the name suggests, cash receipts are typically used whenever a cash transaction occurs. If a customer pays you for goods or services using cash, you should have a cash receipt ready. However, that’s not the only time you might need one.

You can also use cash receipts when someone pays using a check. Checks essentially work the same as cash in a transaction.

Another time you might want to use a cash receipt is when a customer makes a purchase using store credit. Since there is no digital credit or debit transaction, a cash receipt would be the best way to record store credit purchases.

What information should be on a cash payment receipt?

The easiest way to prepare for a cash transaction is to create a cash receipt template. Basically, create a receipt for a cash payment but leave it blank. Then, you can quickly fill in the information when a customer makes a cash purchase.

Here are some of the most important pieces of information to include in your cash receipt template:

• Receipt number.
• Your business name and contact information.
• Date of the transaction.
• The words “cash receipt.”
• Description and quantity of items sold.
• Price of each item.
• Sales tax.
• Subtotal at the bottom.
• Any sales terms and conditions that might apply, like a warranty or return policy.

Remember, a receipt isn’t an invoice. The difference between invoices and receipts is that invoices request money, while receipts show that the payment has been processed. You should only use a cash receipt after the customer has paid for the products or services — in cash, of course.

Download a cash receipt template PDF.

If you’re not confident about creating your own template from scratch, you can download a premade cash receipt template online. That will give you a well-formatted baseline on which to build. You can then customize the information to suit your unique business needs.

Frequently asked questions.

Is a cash receipt required?

Yes, cash receipts are a legal document that shows an official transaction between two parties. Just make sure they contain all the information you would need just in case a dispute arises.

Do checks count as a cash transaction?

Yes, checks work the same as cash in a transaction. The only difference is that you should record the check number on the receipt.

How do I digitize my cash receipts?

Download a mobile free scanner app to digitize your cash receipts simply by taking a picture of them with your phone.

Content as a Service v2 - acrobat-hub - Tuesday, October 24, 2023 at 10:18