What Are Sales Receipts?
A common part of purchasing an item or selling goods is the sales receipt. Each transaction done with a
business normally provides a receipt for the goods or services paid for. They normally contain standard pieces of information that help with your business accounting. Therefore, it’s important that the creation and tracking of sales receipts when doing business is done well.
The days of handwritten receipts are mostly over. Things have begun to go digital. Keep reading to learn everything you need to know about sales receipts, and why they’re important to your business!
Here’s What We’ll Cover:
What Is a Sales Receipt?
A sales receipt is documentation of goods or services provided by a business. The receipt itself is the most basic form of acknowledging that the goods or services were provided. They are provided to customers or clients only after the goods or services have been given to the recipient. They also require that the amount for the goods and services be paid in full before being provided.
If a client or a customer is making installments on an item or a service, business owners have the option to provide partial receipts. This allows the customer, as well as the business, to keep track of the money that is still outstanding. These receipts will normally show what the remaining balance is after a payment has been taken.
Primarily, receipts are used as proof that a business has provided something to a customer. That way, there is no confusion or contesting that the good or service has been received.
What Information is on a Sales Receipt?
Typically, all receipts look similar. They also contain standard information about the transaction that has taken place. This information is normally what’s listed below:
- Name and UPC of each product or service
- The quantity of each product or service
- The price of each product or service
- The total price of the transaction
- The sales tax collected on the transaction
- The payment method used by the customer
In addition to these, some receipts will contain more information. CRA-compliant receipts require the following information in addition to what’s listed above.
- The GST/HST registration number of the business
- The business’s name
- The date, time, and address of the sale
- Contact information for the business, such as a phone number, email address, or website URL
- Who rang up the sale, or information for the cash register it was rung up on
Furthermore, some businesses will use a customized sales receipt template for their business. If providing services that require more precise documentation, a longer sales receipt form can be printed. It can then be filled in manually. These are examples of handwritten receipts. Businesses like mechanic shops tend to use these to detail the services performed on vehicles.
Digital Sales Receipts
Receipts aren’t just provided via paper anymore. More and more businesses are offering digital sales receipts to customers and clients. You’ll find in larger chain stores that after paying with a credit card or debit card you can choose your type or receipt. The cash registers will offer a drop-down list, asking if you’d like your receipt via paper or email. Then it will allow the input of an email address.
With all of these advancements in receipts, it’s important that your business stays up to date. If you’re dealing with any form of eCommerce, knowing about online sales receipts is important.
The major difference between digital sales receipts and paper sales receipts is the amount of detail. The details on sales receipts produced digitally can be far more specific as there is no limit to the receipt itself.
The Importance of Sales Receipts
Sales receipts represent how much money your business has made over a period of time. They document sales as well as taxes paid, and are invaluable for business accounting needs. All small businesses need an effective receipt management system. This allows for effective receipt creation, which is necessary for good record keeping.
Additionally, without good sales receipts managing customer satisfaction can be impacted. Sales receipts are proof that goods or services have been rendered. If customers are provided with inaccurate receipts, it can be hard to know what they’ve actually received.
Sales receipts are an essential part of any business. They’re a way of keeping record of goods and services provided to customers, and allow you to track what your business is doing. Without them, it can be difficult to stay on top of business accounting. Effective management of sales receipts can provide insight into your business’s daily activity, as well as it’s growth over time.
If you want to learn more about sales and business accounting, head over to our resource hub. We have plenty of articles about all things small business related!