![]() ![]() Why are receipts important in a business? ![]() It can be as simple as jotting details on a piece of paper or generated using readily available templates. All these are examples of receipts that serve as proof of payment made or completed transactions.ĭepending on what you sell and what kind of business you run, the receipt can also be treated as an invoice or vice versa. Also when you swipe a credit or debit card to make a payment, you get a receipt from the card machine. So after your purchase or having food, you pay the amount and in return, you may receive a piece of paper with a stamp ‘Paid’. Have you ever visited any supermarket, restaurant, or grocery shop? Of course, you did. Itemized list of products sold or services offered.It is a legal document only to convey to the customers and serves as proof of payment made against a particular sale or service offered.Įvery receipt you issue should include the following details: Details included on receiptsĪ receipt is less detailed than an invoice, so it is much simpler to create. So retailers, eCommerce stores, merchants issue receipts as well as sales receipts. Usually, businesses where the goods are sold and payments are done straight away, require sales receipts. The receipt can be either in printed form or digital form. Sales receipt serves as proof of payment and also acts as proof of ownership in most cases. It is issued when the sale is completed and after the payment is made. Since most small business owners, entrepreneurs, and freelancers, fight their own battles, they need to be clear while documenting finances.įor more clarity and understanding, let’s explore both the legal documents in detail: What is a receipt?Ī receipt is basically a document issued by a seller/vendor to their customer, stating that they have received the payment. However, deep down they are issued for different purposes and have a significance of their own due to which invoices and receipts make essential parts of your company’s financial records. Both are documents to record sales transactions. Invoice and receipt It can be a colossal risk if you don’t understand the meaning, differences, and similarities between these two legal document terms.įor a layperson, it may be just a term that can be used interchangeably but it makes a vast difference from the business point of view. ![]()
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