A receipt is a written or digital record that confirms payment for goods or services. You've gotten thousands of them-that little slip from the coffee shop, the email after an online order, the PDF your freelancer sends after you pay their invoice. Simple concept, surprisingly important document.
What Is a Receipt Used For?
A receipt does more than prove you bought a latte. It's your backup when things go sideways:
- Proof of payment: Settles any "did they pay?" questions on the spot
- Returns and warranties: No receipt, no return-most stores won't budge without one
- Tax and expense tracking: Your accountant (or future you at tax time) will thank you
- Compliance: Some industries require documented proof of every sale
What Should a Receipt Include?
A solid receipt covers the basics without overcomplicating things:
- Business details: Name, address, and contact info (plus tax ID if required)
- Date and receipt number: When it happened and a unique reference for tracking
- Line items: What was bought, how many, and at what price
- Totals: Subtotal, tax, any discounts, and the final number
- Payment method: Cash, card, transfer-however the money moved
Receipt vs. Invoice: What's the Difference?
An invoice says "you owe me money." A receipt says "money received, we're good." Invoices come before payment; receipts come after. Some businesses use both-invoice first, receipt once it's settled.
How to Write a Receipt
- Start with the basics: Business name, date, receipt number
- List what was sold: One line per item with quantity and price
- Do the math: Subtotal + tax - discounts = total
- Note how they paid: Cash, card (last 4 digits), or transfer
- Add any policies: Return window, warranty info-whatever applies
Whether you're running a side hustle or managing a storefront, a clean receipt builds trust and keeps your records straight. Need one right now? Grab a receipt template and have it done in a few clicks-or learn how to create a receipt step by step.