How to Write a Receipt: What to Include, With Examples

How to write a receipt: the short answer

To write a receipt, put a unique receipt number and the date paid at the top, then name who paid and who received the money. Describe what the payment was for, state the amount actually received, the payment method and any reference, show any balance still owed, and sign it as the person who received the money.

That is the whole job for most receipts. The rest of this guide covers the parts people get wrong: the difference between the amount due and the amount received, how to receipt a deposit without making it look like the job is paid for, how to number receipts so your records hold together, and how long to keep them.

What to include on a receipt

A receipt exists to prove that a specific payment happened. Anyone reading it later, whether your customer, your accountant or a tax inspector, should be able to answer six questions from the page alone: who paid, who was paid, when, how much, how, and for what.

The IRS gives a useful test from the buyer’s side. It says the documents supporting a business expense should show “the payee, the amount paid, proof of payment, the date incurred”, and a description of what was bought (https://www.irs.gov/businesses/small-businesses-self-employed/what-kind-of-records-should-i-keep). A receipt that answers those points is one your customer can actually use.

Not every receipt needs every row. A card sale in a shop rarely names the customer, and a receipt from a sole trader with no tax registration has no tax number to show. But the three rows people most often leave out, the reference, the balance remaining and the signature, are the ones that settle disputes, so include them whenever they apply.

Amount due versus amount received

An invoice is built around the amount due. A receipt is built around the amount received, and the two are not always the same. A customer may pay half now, pay a little over, or hand you a £50 note for a £35 job. The receipt records what you kept, not what was handed over and not what the invoice said.

When they differ, show both: the total of the sale, the amount received in this payment, and the balance that remains. If you want the fuller picture of how a receipt differs from an invoice and a quote, the invoice vs receipt vs quote guide lays out every sales document side by side.

How to make a receipt, step by step

Say a pottery studio in the US runs a Saturday glaze workshop. A customer books three places at $42.50 each and buys two bags of clay at $18.00 each. The studio charges sales tax at an assumed 8% (your own rate depends on the state and locality) and the customer pays by card at the counter. Here is how the receipt is built.

• Choose the title. This is a straightforward sale paid in full, so “Receipt” is enough. Use “Payment Receipt” when you are confirming payment of an earlier invoice.
• Give it the next number in your receipt series, say RCT-0118, and the date paid, 12 September 2026.
• Add your details as the business that received the money: name, address, email or phone, and a tax registration number if you have one.
• Add the payer under “Received from”. For a walk-in customer a name is optional; for anyone who may claim the cost as a business expense, include it.
• List the lines: 3 × Glaze workshop place at $42.50 = $127.50, and 2 × Clay bag at $18.00 = $36.00.
• Work out the totals: subtotal $163.50, sales tax at 8% $13.08, total $176.58.
• Record the payment: amount received $176.58, method Card, and the last four digits and authorisation code from the terminal slip as the reference.
• Mark it paid in full, sign it as the person who took the payment, and hand over or send the copy. Keep your own copy under the same number.

The sales tax figure is $163.50 × 0.08 = $13.08 exactly, so no rounding is needed here. When the multiplication produces a third decimal, round to the cent at the tax line and make sure the total is built from the rounded figures, so the page adds up for anyone checking it by hand. The sales tax calculator is handy for checking a rate before you write the figure down.

Receipt examples for cash, card, transfer and cheque

The fields stay the same whatever the payment method. What changes is the reference you record and the small print you add. The examples below are hypothetical and cover the methods most small businesses take.

Cash receipt example

A mobile dog groomer finishes a full groom priced at $85.00. The owner hands over a $100 bill and the groomer gives $15.00 change. The receipt shows amount received $85.00, method Cash, and no reference, because cash leaves no bank trail. That missing trail is exactly why the receipt matters more for cash than for any other method.

Write the amount received as $85.00, not $100.00. The change is not income and never was. If you want to note the tender, a line in the notes such as “Tendered $100.00, change $15.00” is fine, but the headline amount must be the money you kept. Sign the receipt and keep the copy: for a cash sale, your copy of the receipt is often the only record of the income that you have.

Card receipt example

A plumber in England, registered for VAT, fixes a leaking valve for £180.00 plus VAT at 20%, which is £36.00, making £216.00. The customer pays by card on a portable terminal. The terminal slip proves the card was charged, but it does not say what the charge was for. The plumber’s receipt adds the description, the VAT and the job address, and records the terminal’s authorisation code as the reference.

Because the charge is £250 or less including VAT, this receipt can also do the work of a simplified VAT invoice if it shows the plumber’s name, address and VAT registration number, the time of supply, a description, and for each rate the total including VAT and the rate charged. That is HMRC’s list for supplies of £250 or less in VAT Notice 700/21, section 4.5 (https://www.gov.uk/guidance/record-keeping-for-vat-notice-70021). Above that figure a full VAT invoice is needed; the VAT calculator will split any gross figure into net and VAT.

Bank transfer receipt example

A freelance translator in Germany sends invoice INV-0087 for €1,450.00. Ten days later the client’s transfer arrives with the reference “INV-0087”. The translator issues Payment Receipt RCT-0031, date paid equal to the date the money landed in the account (not the date the client says they sent it), method Bank transfer, reference INV-0087 plus the bank’s transaction ID, amount received €1,450.00, paid in full.

Many businesses do not issue a separate receipt for transfers; they mark the invoice as paid and send it back. That works too, and it is what the PAID stamp in the invoice generator is for. A separate receipt is better when the client asks for one, when the payment covers several invoices, or when it is a part payment.

Cheque receipt example

A piano tuner is handed a cheque for $640.00, cheque number 1047, for tuning two instruments at a school. The receipt records method Cheque, the cheque number and the name of the bank it is drawn on, amount received $640.00, and a note: “Received subject to the cheque clearing.”

That note matters. A cheque is a promise that can bounce. If it does, your receipt should not read as unconditional proof that the school owes nothing. Some businesses wait for the cheque to clear before issuing the receipt at all, which is the cleaner option when the customer does not need it on the spot.

Mobile payments and mixed payments

For a mobile wallet or payment app, record the app’s transaction ID as the reference; the payer’s phone number or handle is usually unnecessary and is personal data you do not need to print. For a split payment, list each part. Say a customer settles a $350.00 bill with $200.00 in cash and $150.00 on a card: one receipt, two payment lines, and a total received of $350.00.

How to write a part-payment or deposit receipt

Part payments are where receipts earn their keep. When a job is paid in instalments, each receipt has to show how much was paid this time, how much has been paid in total, and how much is still owed. Miss the last figure and a deposit receipt can later be waved around as if it settled the job.

Say a carpenter agrees to build fitted shelving for $3,960.00: $1,260.00 of timber and fittings and 36 hours of labour at $75.00 an hour ($2,700.00). No sales tax applies in this example to keep the arithmetic clear. The agreement asks for a 25% deposit to book the dates, a stage payment of $1,500.00 once the carcasses are installed, and the balance on completion.

Check the arithmetic the way a customer would: $990.00 + $1,500.00 + $1,470.00 = $3,960.00, and each balance is the job total minus everything received so far. The deposit is $3,960.00 × 25% = $990.00, leaving $2,970.00. After the stage payment, $2,970.00 − $1,500.00 = $1,470.00, which is exactly what the final receipt collects.

Wording that keeps a deposit receipt honest

• Say what the payment is: “Deposit of $990.00 towards fitted shelving, total price $3,960.00.” The word “towards” does a lot of work.
• Show the balance remaining in figures, not just “balance due on completion”.
• Reference the document that set the price, such as the accepted quote or estimate number, so the total cannot drift later.
• Do not put a PAID stamp on a part-payment receipt. A stamp says the account is settled, and it is not.
• If the deposit is refundable or non-refundable, say so in the terms, and make sure that matches what the customer agreed to before paying.

How big the deposit should be, how to word it on the quote, and how it flows into the final invoice are covered in the guide to quote deposits and validity. If you invoice in stages rather than simply taking payments against one quote, the payment terms guide explains stage payments and deposits on the invoice side.

When the customer pays too much

Say a customer owes $480.00 and transfers $500.00 by mistake. The receipt records the amount received, $500.00, against a total of $480.00, and shows a credit of $20.00 in the customer’s favour. Then either refund the $20.00 (and keep a record of the refund) or note that it will be deducted from the next invoice. What you should not do is write a receipt for $480.00 when $500.00 reached your account, because your bank statement and your receipts will no longer agree.

How to number receipts

Every receipt needs a number that no other receipt shares. The number is how you find the payment later, how a customer refers to it, and how an accountant checks that none are missing. A gap or a duplicate in the sequence is the first thing that makes someone reviewing your records look harder.

Keep receipts in their own series, separate from invoices. An invoice records that money is owed and a receipt records that money came in; mixing them in one series makes both harder to audit, and one invoice may end up with several receipts against it, as in the carpenter example. The link between the two belongs in the reference field, not in the numbering.

The receipt maker keeps receipts in their own RCT-0001 series, separate from the invoice generator’s numbers, and suggests the next number for you. The invoice-side equivalent, and how to start an invoice sequence, is covered in how to write an invoice.

Tax invoice vs receipt: when a receipt is not enough

A receipt proves that money was paid. It does not automatically prove how much tax was charged in a form a tax authority will accept for a reclaim. Businesses registered for VAT or GST that buy from you may need a tax invoice, and a bare receipt showing only a total may not qualify.

In the UK, for example, HMRC says there is no requirement to issue a VAT invoice for retail supplies to unregistered customers, and a retailer may assume no VAT invoice is needed unless the customer asks for one (VAT Notice 700/21, section 4.4). For supplies of £250 or less including VAT, a simplified invoice is allowed, which is why a well-built receipt can double as one, as in the plumber example. Other countries set their own thresholds and content rules, so check with your tax authority before relying on a receipt as a tax invoice.

The phrase “tax receipt” also has a second meaning in the US: the acknowledgment a charity gives a donor. The IRS requires a written acknowledgment to substantiate a charitable contribution of $250 or more, showing the organisation’s name, the amount of a cash gift or a description (but not the value) of a non-cash gift, and whether any goods or services were given in return, with a description and good-faith estimate of their value if so (https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contributions-written-acknowledgments). If you run a charity, that page and Publication 1771 are the ones to read.

For the full comparison of tax invoices, pro formas, receipts and credit notes, and when each one is the right document, see invoice vs receipt vs quote. For how sales tax, VAT and GST registration works in the first place, the GST and sales tax compliance guide is the place to start.

Rent receipts and when a receipt is a right

In some places, a receipt is not just good practice but something the payer can insist on. California’s Civil Code section 1499 says: “A debtor has a right to require from his creditor a written receipt for any property delivered in performance of his obligation” (https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV&sectionNum=1499). In plain terms, a customer paying a debt there can ask for a written receipt.

Rent has its own rules in some jurisdictions. New York’s Real Property Law section 235-e requires a landlord paid in cash, or by any instrument other than the tenant’s personal cheque, to give a written receipt showing the date, the amount, the premises and the period paid for, and the signature and title of the person receiving it, and to keep a record of cash rent receipts for at least three years (https://www.nysenate.gov/legislation/laws/RPP/235-E). Those four items are also a good default anywhere.

Rent receipts raise questions of their own, such as partial rent, late rent, security deposits and how tenants use receipts as proof, and the rent receipt guide covers them in full. The receipt maker has a Rent Receipt title and custom fields for details such as the rent period.

Digital receipts vs paper receipts

A receipt does not have to be on paper. A PDF sent by email or message is a receipt just as much as a page torn from a carbon book. What matters is that it contains the right details, that it cannot be quietly changed afterwards, and that you can find it again when you need it.

Tax authorities generally accept electronic records on the same terms as paper. The IRS says “All requirements that apply to hard copy books and records also apply to electronic records” (https://www.irs.gov/businesses/small-businesses-self-employed/what-kind-of-records-should-i-keep). HMRC’s VAT record-keeping notice says that if a scanned image is retained and contains all the detail required for VAT purposes, the business does not need to keep the original invoice, unless it is required for another purpose (VAT Notice 700/21, section 6).

A practical approach for many small businesses is both: a paper receipt book for cash taken away from a computer, scanned or photographed at the end of each week, and digital receipts for everything else. Whatever you choose, file your copies by receipt number and back them up somewhere other than the device that created them.

The receipt maker builds the PDF on your device and saves a history of receipts and customers in your browser’s storage. That storage belongs to one browser on one device, so use its JSON backup export regularly, and keep the PDFs themselves in your own filing system. The tool does not email receipts for you; you download the PDF and send it however you normally would.

How long to keep receipts

Keep receipts, both the copies you issue and the ones you receive, for as long as your tax authority can ask to see them. That period depends on the country, the tax and the type of business. The table shows the general rules from four official sources; each has exceptions, so read the source for your situation.

A worked date makes the UK sole trader rule concrete. A receipt dated 10 March 2026 falls in the tax year that ran from 6 April 2025 to 5 April 2026, whose online return deadline is 31 January 2027 (https://www.gov.uk/self-assessment-tax-returns/deadlines). Five years after that deadline is 31 January 2032, so that receipt should be kept until at least then. GOV.UK adds that if a return is sent more than four years after the deadline, records must be kept for 15 months after sending it.

In the US, those periods follow the period of limitations: the time in which you can amend a return or the IRS can assess additional tax. The IRS also warns not to discard records that are no longer needed for tax until you check whether you must keep them longer for other purposes, for example because an insurer or lender requires it. Receipts for business assets, warranties and anything that might end up in a dispute are worth keeping for as long as that asset or risk exists.

Common receipt mistakes and how to avoid them

• Writing the amount tendered instead of the amount received. A $100 bill for an $85 job is an $85 receipt.
• Stamping a deposit “Paid”. Only the receipt that brings the balance to zero should say paid in full.
• No balance remaining on a part payment. Without it, a deposit receipt reads like full settlement.
• Using the invoice date as the date paid. The receipt date is the day the money arrived, which may be weeks later.
• No reference. A receipt that cannot be matched to an invoice or a bank line is hard to use for anyone, including you.
• Reusing or deleting numbers. Void the wrong receipt and issue a new one; keep both.
• Vague descriptions such as “Services” or “Goods”. Say what was supplied, when, and where if it matters.
• Calling it a tax invoice when you are not registered for tax, or showing tax you did not charge.
• Issuing an unconditional receipt for a cheque that has not cleared.
• Keeping no copy. Your copy is your record of income, especially for cash.
• Printing more personal data than needed, such as full card numbers. The last four digits and an authorisation code are enough.

Sources

• IRS, what expense and income records should show, and electronic records: https://www.irs.gov/businesses/small-businesses-self-employed/what-kind-of-records-should-i-keep
• IRS, periods of limitations for keeping records: https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records
• IRS, written acknowledgments for charitable contributions of $250 or more: https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contributions-written-acknowledgments
• HMRC VAT Notice 700/21, retention (2.4), retail supplies (4.4), simplified invoices up to £250 (4.5), scanned records (6): https://www.gov.uk/guidance/record-keeping-for-vat-notice-70021
• GOV.UK, how long self-employed people must keep records: https://www.gov.uk/self-employed-records/how-long-to-keep-your-records
• GOV.UK, how long limited companies must keep records: https://www.gov.uk/running-a-limited-company/company-and-accounting-records
• GOV.UK, Self Assessment tax year and deadlines: https://www.gov.uk/self-assessment-tax-returns/deadlines
• Canada Revenue Agency, how long to keep records: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/keeping-records/where-keep-your-records-long-request-permission-destroy-them-early.html
• California Civil Code section 1499, right to a written receipt: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV&sectionNum=1499
• New York Real Property Law section 235-e, rent receipts: https://www.nysenate.gov/legislation/laws/RPP/235-E

Where to go next

If the payment you are receipting settles an invoice, how to write an invoice covers the document that comes first, and invoice vs receipt vs quote shows how every sales document fits together. If the money has not arrived yet, chasing overdue invoices covers reminders and late fees.

Taking deposits regularly? Read quote deposits and validity before you set the next one. Landlords and tenants should head to the rent receipt guide.

Common questions