Step-by-Step Guide: Creating Custom Receipt Templates

As a business owner, you’re most likely familiar with payment receipts since you issue them each time you complete a transaction involving cash with a client. However, if you have a brand new business, you will want to set up a receipt template that you can customize to each customer’s order. If you’re not sure what goes on them or where to get free receipt templates, we’re going to outline all of the important considerations you want to include below.

Defining a Payment Receipt

What is a receipt? In short, your receipt is a form of written acknowledgement that you transferred something of value to your customer and they paid for it. Vendors usually give their customers receipts at the end of a transaction, but it’s not uncommon to issue receipts in business-to-business dealings and during stock market transactions.

For example, a business can purchase inventory from a supplier. The supplier will give the business an itemized payment receipt that shows the items, quantities, and how much the business paid out. For customers, you issue them a receipt when they pay for your goods or services, and you can use a receipt template to make a branded one.

In addition to helping prove ownership of goods, receipts also work for other purposes. As a business, you may require a customer to show you a receipt if the customer wants to return or exchange an item. Other businesses need a receipt if the customer files a warranty claim. Payment receipts are important during tax time too because the IRS will require any business to prove certain expenses, and you can do this through saving receipts. You should generate receipts for the following instances:

• Invoices
• Petty cash slips for any small cash payment
• Gross receipts like deposit information for credit or cash sales, cash register tapes, invoices, receipt books, and forms 1099-MISC
• Cash register tape receipts
• Credit card statements and receipts
• Receipts from any raw material purchases. They should show the amount paid while confirming that they were all necessary purchases for your business. They could include cancelled checks or other documentation that identify who paid, the payment amount, and proof of electronic funds transfers or payments.

What Is a Receipt Template?

A free receipt template is a blank form that is very user-friendly and enables businesses to create receipts when they need them. This template will document the date the customer paid, the amount, reason for payment, and who paid your business. You want to give a copy of this receipt to whoever paid.

You can use a cash receipt template to create receipts for different needs. For example, you could have sales receipts for your business, general receipts for any type of sale, rent receipts, or an itemized one. You could use it for services or products, and you give it to whoever pays as a record of their purchase. It’s an essential part of record keeping for your business.

If you get a free receipt template, you can recycle it over and over while customizing it to include a lot of information about the payment or purchase. You should provide a receipt right after you make a sale and both parties should keep a copy for their records. A missing or lost receipt can cause a lot of problems down the line for both parties if an issue with the products or services come up.

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Free Receipt Template Components

Once you have your free receipt template, you have to know what to add to it. Generally speaking, most receipts have the same core items, no matter what you give a person a receipt for. Each time there is a cash transaction, a receipt should exchange hands too. The biggest components you want to include are:

1. Amount Paid – Did the customer pay the full or a partial amount? List it clearly at the bottom of the receipt, and keep the balance there too if there is one left.
2. Business Information – Make sure to include the business’s information like the name and address. If it’s a custom receipt, logos, phone numbers and email addresses are also common.
3. Customer Information – You want to have at least the name and address of the person who made the payment. It may be a good idea to have a telephone number too in case you need to clarify something. For big businesses, this may be someone in the billing department.
4. Date – Have the date the person gave you the payment listed clearly.
5. Initials or Signature – There should be a line on the receipt for the person to initial or sign after they make a payment.
6. Payment Method – Most receipt templates allow you to customize different payment methods like cash, credit cards, debit cards, etc. Include the payment method.
7. Payment Reason – Why did the person make a payment? Was it for specific goods or services? Each item should be on the receipt.
8. Receipt Number – For filing purposes, each receipt should have a unique identifier on it. It could start like Receipt #001 for the first one and Receipt #002 for the second, and so on. This will help you pull it up later if you need it.

Why Keep Payment Receipts

When you run a business, properly storing receipts and organizing your files can streamline your operations. This is especially true for accounting and tax purposes. Keeping all of your receipts can also:

• Deductible Expense Tracking – Keeping receipts that outline each transaction a business makes will ensure you have proof to claim any and all deductions on your taxes.
• Financial Statement Preparation – You’ll need to refer to your cash receipt templates and records to prepare your financial statements like balance sheets or profit and loss statements.
• Monitor Progress – Records can help you see how your business is doing. It’ll show which items you’re selling, whether or not the business keeps improving, and what changes you should make.
• Organization – You could end up working with several vendors and have dozens of sources of expenditures and income. Receipts help you separate out nontaxable and taxable income. They’ll also help you identify your deductions.
• Tax Return Preparation – Good payment receipts will help you create a short snapshot of your year in taxes. You need to keep and organize them to get the best return you legally can.
• Tax Return Support – To back up your tax return in the event of an audit, you need proof of each deduction and write off you had. Having these documents can help you avoid fines.

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What types of receipts to keep

So, what payment receipts should you keep? Unfortunately, it’s always better to adopt the better safe than sorry method when it comes to your business’s finances, and this means that you want to keep all of the receipts that pertain to the business. You may want to consult with your accountant, but here are a few you absolutely have to keep:

1. Advertising

You advertise for your business, and you should keep receipts for each type of advertising you do. This could include printing business cards, web hosting, setting up billboards, or running ads in magazines. Whatever you do, make sure you have a cash receipt template for it.

2. Assets

Your assets are the property you use and own in your business. They usually include things you keep and use over the years like computers, furniture, machinery, or vehicles. You’ll have to deal with asset depreciation on your taxes too, and receipts can help support this. Keep records when you spend money on your assets in the form of cash receipts. If you upgrade the computers, get a receipt. Also, keep records of when you sell off one of your assets.

3. Car and Truck Expenses

If you can deduct car and truck expenses, you’ll want to keep receipts for any maintenance you perform or fuel you buy. You may also be able to deduct wear and tear if you keep track of mileage, but you should talk to an accountant about it.

4. Education

Maybe you have to get more education in your business like an accounting or business degree. Did you take a class to learn a new system? If so, keep your bank records and receipts to show that you paid for your education.

5. Entertainment

Did you take a customer out to lunch? If so, these are deductible expenses on your taxes. You want to keep payment receipts, but you also want to show proof that this meal and other entertainment-related activities are directly business-related.

6. Inventory

You’ll buy inventory to sell to your customers or you’ll buy raw materials to create things to sell. If you do, get a receipt template that shows the amount paid, payee, and proof you paid for the items. If you can’t get a receipt, make sure to keep the invoice and cancelled check as proof. A cancelled check is proof that the person cashed your check to pay for the inventory.

7. Networking

Do you have to go to a tradeshow or conference for your business? If so, keep the bill or receipt just like you would with education expenses. Keep your bank records as proof of purchase too because you can deduct these costs come tax time.

8. Office Supplies

Any and all office supplies you purchase like staples, paper, pens, paper clips, and more are tax deductible. So, each time you purchase new office supplies, get a payment receipt to show on your taxes. Even smaller purchases can quickly add up over the year.

9. Other Expenses

A lot of your payment receipts will end up under the other expenses category. As a general rule, if you plan on writing something off on your taxes, you’ll need thorough documentation that you purchased the items. Each business is different, but it could include anything from your internet and phone bills to a portion of your rent or light bill.

10. Professional Services or Contractors

Did you pay a lawyer to draft a new contract for you throughout the year or ask a graphic designer to create a receipt template for your business? When you pay the bill, keep both the invoice and receipt as proof and deduct them.

11. Travel

During the year, you may get on a plane to visit a client’s location or stay in a hotel for a few days during a conference. Keep all of the bills and receipts for your travel expenses to help you deduct part or all of your trip expenses. The receipt is usually enough proof, but keeping the bill is good practice too. For example, say you have a home office and you want to deduct a part of your mortgage. To do this, you’ll want to show how much the costs went to just your office each year.

How to Pick the Best Free Receipt Template

Now that you know why it’s so important to keep receipts and what to put on the receipt itself, how do you pick the best free receipt template? Do you want a PDF or Excel file? Do you want to be able to customize it with your business logo and information each time, or would you rather it auto-fill?

Ideally, you’ll get a software suite that can help you create the best payment receipts possible for your business, like Billdu. Billdu offers a host of features that can streamline your business’s entire finances, including:

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– Receipt Scanner

Trying to keep track of paper receipts can be a nightmare, especially if you have a busy business with multiple transactions each day. To save you from the hassle, a receipt scanner will digitize everything and you can store them right in your dashboard. This allows you to recall receipts as soon as you need them, send them to your accountant come tax time, and have all of your receipts in one centralized location when you need them. No matter if your business is large or small, this is a great way to stay organized.

– Accountant Connection

When you set up your cash receipt templates, you want to be able to quickly and easily share all of them with your business’s accounting team. Ideally, you’ll be able to do so without worrying about losing any, having to print them and send them in manually, or worry about duplicating them. Billdu offers a fast way to share all of your payment receipts directly with your accountant. This can streamline your finances, keep you organized, and reduce the risk of missing out on deductions.

– User-Friendly

Any receipt template you use should be very user-friendly while allowing you to easily customize it to suit your business. You should be able to add your logo, business information, client information, and anything related to the transaction without having to move through multiple screens. Billdu has a very intuitive and user-friendly dashboard that is easy to navigate, and you’ll find pleasant, smooth, and informative invoice and receipt templates that you can tailor to each transaction.

– Multiple Payment Methods

You don’t want to box yourself in with just a few payment methods when it comes to your products or services. Although you can have cash receipt templates, you should have templates that display other ways to pay like credit cards, debit cards, or check. Mobile wallets are also very popular for large and small businesses. The types of payments you accept can make your business more approachable for customers, and this can boost your sales.

– Different Currencies and Languages

Are you a business that only plans on having customers that speak one language and use one type of currency? Chances are, probably not. It’s in your business’s best interest to offer a host of languages and currencies on your templates. Doing so will open your business up to more clients to increase your sales, and Billdu’s templates will automatically convert the totals into 16 different languages with their matching currencies. In turn, you can easily deal with clients all over the world.

How to Create Receipts Using Billdu Receipt Template

Creating receipts in Billdu is super easy.

Step 1: When you receive payment for an invoice, add the payment first with on click.

Step 2: Then, select Create Receipt from the menu.

Step 3: Voila, your receipt is ready! This is not even a step, is it? So it’s literally two click to add a payment and generate a receipt for it in Billdu.

Billdu’s Free Trial

Billdu offers a free trial that gives you plenty of time to experiment with our software and see how it can improve your business. It works well for large and small businesses, and you can easily create custom receipts with your business’s logo and information. We also allow you to save and auto-fill in your customer’s information to make the billing process smoother.

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