How to make a receipt

A receipt records that money changed hands. It is not the same document as an invoice.

An invoice requests payment. A receipt confirms it was made. Both parties want the second for their records, and for anyone claiming an expense it is the document that matters.

What a receipt needs

• The word "Receipt".
• The date payment was received — which may differ from the invoice date.
• Who paid, and who received.
• The amount, with tax shown separately if applicable.
• What it was for.
• How it was paid — cash, transfer, card.
• A receipt number, and the invoice number it settles.

Step-by-step

1. Enter both parties' details.
2. Enter what was paid, and for what.
3. Download and send.

Cash especially

Electronic payments leave their own record; cash does not. A written receipt is the only evidence either side has, so it matters most exactly where it is most often skipped. Give one every time, and keep a copy.

Partial payments

If a receipt covers part of an invoice, say so and state the remaining balance. A receipt that looks like settlement in full when it is not causes a genuinely awkward conversation later, and the paperwork will be on the payer's side.

A receipt is not an invoice

They are often produced by the same software and they do opposite jobs. An invoice is a request: it says money is owed, states the terms, and is issued before payment. A receipt is an acknowledgement: it says money has been received, and it can only honestly exist afterwards.

The distinction matters for records rather than for etiquette. A receipt is what a payer keeps to prove they paid, and it is the document that closes the transaction. Issuing one before the money has arrived — on the assumption a transfer will clear — creates a proof of payment for a payment that has not happened, which is a genuinely awkward thing to have written down if it then fails. The paperwork should follow the money, not anticipate it.

Numbering, and why gaps are worth avoiding

Receipts want a sequence, and it should be unbroken. The reason is not bureaucratic tidiness: a continuous sequence means that a missing number is visible, so records can be checked for completeness by anyone reading them, including you months later when trying to reconcile a period.

The practical rules follow from that. Never reuse a number, because two documents with the same reference cannot be told apart in a dispute. If one is issued in error, keep the number and record it as cancelled rather than deleting it, so the gap is explained rather than merely present. And prefix the sequence in some way if you issue receipts from more than one place or year, so that reference 47 is unambiguous about which 47 it is.

Frequently asked questions

What is the difference between an invoice and a receipt?

An invoice asks for payment; a receipt confirms payment was made. A paid invoice is not a substitute, because it does not record when or how the money arrived.

Do I need to give a receipt for a bank transfer?

The transfer is its own record, but a receipt is still useful for the payer's bookkeeping and is often expected for business expenses.

How long should receipts be kept?

Typically five to seven years depending on the country. Check your own tax authority's requirement.