Templates help businesses manage all kinds of receipt information, such as rent receipts, sales receipts, blank receipts, book receipts, and cash receipts. Cash receipts help transcribe all the information of a final sales transaction into a concise document. It is ideal to issue cash receipts at the end of a sales transaction since all the information to draft the document is present.
Cash receipts, for both the buyer and seller, are evidence of a transaction: the buyer uses the document to prove a purchase, while the seller uses it to record a sale. Two copies of a single document are necessary for both parties.
The information on cash receipts commonly use comes from invoices. An invoice is a commercial document showing the provision of a product or service from the seller, and a payment request for the buyer. To meet the expectations between two businesses, an invoice serves as a medium of communication, and a warranty against fraud.
After constant transactions, multiple invoices then create a professional, punctual, and progressing partnership between businesses. It is important for the buyer and seller to keep invoices because recording them is essential to proper bookkeeping. At the end of a sales transaction, a business can transfer information from a collection of invoices, to a single, organized document such as cash receipts.
The Power Of Well-Designed Cash Receipts
For any business, accurate and organized billing information is crucial. How a business keeps, records, and transcribes their billing information affects how they file their taxes, how they track their revenues and costs (and therefore their profits), and how they maintain their relationship with other businesses.
It is critical to keep all kinds of financial documentation. Bank statements, invoices, payroll, records, or any note of a transaction between two parties are a signal of income, deduction, or credit when filing taxes.
Businesses must send honest financial information to the IRS (Internal Revenue Service). If a business does not send financial information (or sends fraudulent information) the IRS will issue an audit or an official financial examination of a business. The consequences of an audit can threaten reputations and livelihoods within a business.
Preserving financial documents not only protects a business but can also help a business with tax deductions and credits. Certain cash receipts a business can file under its taxes could save money or lower the amount of taxable income.
The IRS recommends keeping all financial documents for three years. According to the Period of Limitations, the IRS can perform an audit on a business during three years after a tax return. Since the burden of proof falls under the business during an audit, it is advisable to preserve any financial documentation related to a tax return for up to three years.
To maintain the financial health of a business, it is essential to track money coming in and going out. Cash receipts are perfect to track the revenues and costs of a business.
A business must always be vigilant towards what they buy and how much of it. It is also important to remember what product or service they are providing, and how much their customers will pay for it. Besides the monetary value of the transaction, cash receipts act as the proof of authentication when conducting a transaction.
By recording several cash receipts, a business can discern what materials are significant, which relationships are vital, and where unnecessary spending is present to cut costs and save money. Neglecting the paper trail of financial transactions is ignoring the heartbeat of a business.
Finally, how a business records and organizes their financial documents reflects how they operate. The key to a healthy business is accuracy because meeting customer or collaborator's expectations with no mistakes presents a good impression.
Trust is the foundation in every transaction, ensuring the longevity of any business. If a business withholds mutual information, or lies to its customers and collaborators, then a business represents a risk upon others. Without proper communication, there is no chance for a business to stay in the game of finance.
How To Design Your Own Cash Receipts
A business is free to design their own cash receipts, so long as the document contains all the financial information pertinent to the buyer and seller. Although a business's own form of cash receipts may be unorthodox, and confusing for other business to read, a well-planned template can reduce errors and enhance productivity.
Transparency and Time
The ideal template for cash receipts is transparent and time-sensitive. Organizing a template with easy-to-read labels will communicate important details of a sales transaction. It is considerate to the customer or collaborator to avoid any ambiguities as possible.
Furthermore, the structure of a template affects the speed of understanding the information present. A good template should not be confusing, but well-ordered so that the receiver can quickly read what needs to be read. A good template structure will save time and avoid any future complications.
Creating Standard Cash Receipts Templates
There are four main features to a cash receipts template:
- The name of the business and the customer's name.
- The transaction's date.
- A brief description of the product or service.
- The amount paid.
The template can also include other transaction information as well: the slip's serial number, information on the buyer, and the number of items purchased. Information concerning taxes and discounts may be unnecessary to include since cash receipts focus on the purchase of goods (in case of a refund) and proof of transaction (in case of legal issues).
After listing the information above, a business is ready to create a template using Microsoft Word, Excel, or any other publishing program. The following instructions are for creating a template using Microsoft Word:
Open PAGE Layout and choose "Size-More Paper Sizes." Make the paper size 6.75" by 2.75", with quarter-inch margins top, bottom, left, and right.
Creating the Receipt
Open INSERT tab and choose "Shapes." Select a rectangle shape and drag it onto the page. Right click on the rectangle shape on the page and choose "More layout options." Click on "Size" and make the rectangle 6.25" by 2.25". Select the rectangle again and go to PAGE LAYOUT-Align and align the rectangle to the "Center" and to the "Middle." Use "Shape Fill" and "Shape Outline" in the FORMAT tab to change the rectangle's style.
Go to INSERT-Text Box, and type in the labels. It is important to remember that each text box corresponds to a separate label of transaction information. When you select the text, a pop up of the text will appear, along with the ability to change the text's style and color.
Go to INSERT-Shapes and choose a straight line. To place a line, hold down the shift key and click on the desired spot on the page. To change the size and color of a line, click on "Shape Outline" under the FORMAT tab.
Once all the labels and lines are in place, go to the FORMAT tab, and click "Align" to move any shape or text to make the receipt easier to read.
To complete the receipt, go to File-Save As-PDF, and name the file. Click save to use the template for future use.
10 Of The Best Cash Receipts Templates
To save time creating a personalize template through Microsoft word, we have constructed a list of online sources that provide simple and stylish cash receipts templates that any business can use:
Offers businesses the ability to tweak the color palettes of a sample template.
Offers templates that make three duplicate copies of one receipt.
Offers a mobile application to create receipts on any smartphone.
Offers 297 blank receipt templates to download and customize for $7.00 USD.
Offers the ability to add logos and watermarks of a brand on a template.
Offers a collection of free receipt templates.
Offers templates with an extra slip attached to receipts.
Offers industry standard templates.
Offers templates best suited for filing taxes.
Offers over 100 chic templates for free.
Having the right cash receipts template will ensure a smooth system to record and file important financial information. A business should always have in mind the opportunity to save time and money. With solid bookkeeping technique, a business can focus its resources on innovation to increase profits. It is best to implement an efficient bookkeeping strategy at the beginning of a business to avoid any threats to its reputation and financial standing in the long-run. Having a poor bookkeeping technique can not only destroy a business, but harm other businesses in the fallout.
In most cases, businesses struggle because of a lack of financial literacy. Some businesses don't know which papers are important and only watch money coming in and going out. However, at Templatesinfo, a business has access to the financial knowledge required for survival, along with sample templates readily available.