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.

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.