How to Make an IT/SW Receipt?
Word of mouth is not enough proof for the completion of transactions, and one can't deny the fact that receipts are credible proof of purchase. In fact, back in 7500 BC in Jericho, a ball of clay was given to represent the completion of a trade. From there, the significance of receipts was forged to what it is today. If you want to create a receipt for your IT/SW business, we have provided easy tips that you can refer to below.
1. Note the Essential Information
Receipts help in recording all the payment details for each transaction, but for recordkeeping, to be accurate you need all the essential information in your receipt. Determine what information per transaction is important, e.g., name of customer, number and types of items purchase, the amount for each item and total, etc.
2. Decide on a Layout
A receipt can either be in a portrait or landscape layout. You have to determine which layout is best to use to ensure you can include all the information you need in your receipt. You can test each layout to identify what is the better option for your needs.
3. Incorporate Recordkeeping Features
The primary purpose of a receipt is for accounting and recordkeeping. Hence, the importance of ensuring your receipts has recordkeeping features. Your cash receipts can have a unique receipt number, billing number, item SKU/UPC, special codes, etc. to ensure the accuracy of all your receipts and records.
4. Include Company Branding
Aside from recordkeeping, your receipt is also an excellent marketing tool. By incorporating your company branding in the payment receipt, your customers can provide reliable recommendations to other potential customers. You can include your company name, address, contact information, signs, logo, etc.
How Are Receipts Recorded?
Your accounting department should have a cash receipts journal which records each cash transaction. Using the receipts, you should log each transaction paid in cash in the said journal. It is important to remember not to include the sales tax in each transaction in the cash receipt journal; they should be recorded in the sales journal instead.
What are the Essential Parts of a Receipt?
The following are the essential parts of a receipt:
1. The item name and SKU/UPC
2. Quantity of product or service
3. Price of each product or service
4. Total price
5. Rate of sales tax and the amount of the sales tax
6. Total price including the tax amount
7. Required business registration number
8. Business name
9. Date, time, and address of the transaction
10. Contact information
11. Signature of sales personnel
What is the Importance of Receipts to Businesses?
Receipts help monitor your business's progress every accounting period, which helps in the preparation of financial statements. They also ensure that you can separate the taxable from the nontaxable income to identify your actual deductions. By the end of the tax year, you can legally claim all your returns if you have all the receipts of transactions. Also, receipts help you avoid any violations should there be an IRS audit on your returns.
What is the Best Receipt Printer?
Impact printers, also called a "dot matrix" printers, uses a ribbon to print ink physically onto the page. On the other hand, thermal printers apply heat to a thermal paper, which is then inked with heat-responsive chemicals. Thermal printers are more expensive but quieter and don't need old-fashioned ribbon paper. But for the most part, impact printers are cheaper.
Can a Receipt be Handwritten?
Yes, a receipt can either be handwritten or typed. You can also issue a receipt electronically or on paper.