What is a payment receipt?
A receipt is a document confirming that money has been received. Unlike an invoice (which requests payment), a receipt is proof that payment has already been made. It's essential for:
- Tax records — both you and your customer need receipts for deductions and bookkeeping
- Dispute prevention — proves you received exactly what was paid, when
- Cash payment tracking — especially important since cash leaves no electronic trail
- Returns and refunds — customers usually need receipts for returns
What should a receipt include?
- The word "Receipt" — clearly marked at the top
- Your business name and contact info
- A unique receipt number — sequential, like REC-001
- Date payment was received
- Customer's name — who paid you
- Amount paid — both numerically and in words for legal clarity
- Payment method — cash, card, transfer, etc.
- What the payment was for — brief description
- Your signature or stamp — adds legitimacy, especially for cash receipts
Receipt vs Invoice — what's the difference?
A common confusion. Here's the simple distinction: an invoice requests payment ("you owe me $100"); a receipt confirms payment was made ("I received $100 from you"). They serve opposite purposes in the transaction lifecycle.
If you need to bill someone, use our free invoice generator instead.
Are handwritten receipts legal?
Yes, in most jurisdictions a handwritten receipt is legally valid as long as it includes all required elements (date, amount, names, payment description). However, printed receipts are far more professional and easier to read. They also reduce disputes — handwriting can be questioned, but a printed PDF can't.
Common types of receipts
- Cash receipt — for cash payments. Most important since there's no other paper trail.
- Service receipt — for services rendered (consulting, repairs, etc).
- Rent receipt — proof tenant paid rent. Required by tenancy laws in some countries.
- Deposit receipt — for partial upfront payments before work begins.
- Donation receipt — for charitable contributions, often tax-deductible.
How long should I keep receipts?
For business taxes:
- United States: 3 years for federal taxes, 7 years recommended for safety
- United Kingdom: 6 years (HMRC requirement)
- European Union: 10 years in many countries
- Morocco: 10 years per article 211 of the General Tax Code
Always store digital copies — paper fades and can be lost.