What is a Real Estate Receipt?
A real estate receipt is a document issued by the broker acknowledging that a property has been sold and that the payment has been settled. It usually defines the real estate product that has been sold and the amount paid. Issuing a receipt is crucial in any business as it is one of the requirements of the law for businesses.
How to Make a Real Estate Receipt?
Issuing receipts is one of the most essential tasks that a realtor must do. As realtors need to deal with tons of documents, issuing receipts would make business recording easier. Also, you can prepare your tax returns beforehand. Thus, if you are a realtor who wanted to make a real estate receipt, below are some proven tips that you can follow in making one.
1. Make your Receipt Unique
One of the dilemmas that realtors face is the duplication of sales receipts. This is a big hassle not only for the realtors but also for the clients. To prevent this from happening, you need to make sure that every receipt that you will issue is unique. How? By including a unique receipt number with the issued date.
2. Brand your Document
As receipts are legal and official business documents, you need to incorporate your brand. For your document heading, you need to include your full company name, location, contact number, and email address. You can also include other information, like your company logo, social media websites, and more on your professional receipts.
3. Include a List of Products
The receipt that you will issue must define the products that the clients availed. With that, you need to include a list outlining the product name and the product definition. For the real estate industry, a list of products would be too much as most of the time a client avails a maximum of two properties in a transaction. With that, you can emphasize the product more by including detailed product descriptions on your sale receipt.
4. Deal with Numbers
Now, this is a crucial tip as it would define the purpose of your receipt—revenue. You need to deal with numbers correctly. Make sure to include in your real estate receipt factors involving in settling the bill, such as the subtotal, sales tax, and grand total. Double-check them to ensure that every number is correct and precise.
5. Define Payment Terms
To properly format your receipt, you need to define the agreed payment terms. For real estate, the most common payment terms would be cold cash or installment. Depending on the convenience of both parties, you can negotiate the payment terms.
What are the common types of receipts?
1. Purchase Invoice
2. Bank Statements
3. Expense Reports
4. Tax Assessments
5. Commercial Receipts
How long does a business should keep their receipts?
The copy of your receipts must be kept for as long as the IRS can audit your record. This is enforced by the law and every business must abide.
Is receipt a legal business document?
A receipt is an official and legal business document as it serves as a proof that sales took place. However, not all are aware that a receipt is important for various reasons.
What is the difference between a receipt and an invoice?
A receipt and an invoice have significant differences. An invoice is issued to the clients to remind them in settling a particular payment. A receipt is issued after the payment has been settled as a proof that sales took place.