How to make a receipt
A receipt is the mirror image of an invoice: it records money that has already been received. Enter your business as Received by and the payer under Received from. Set the payment date, choose the method (cash, card, bank transfer, check, PayPal and so on) and add a reference such as the check number or the last four digits of the card. The Received by (person) field is for the name of whoever accepted the payment – useful when several people handle money.
List what the payment was for. One line (“Deposit for kitchen refit – 30%”) is fine for a deposit; itemize if the customer paid for several things. The receipt shows the total as Amount paid and carries a PAID stamp, so it cannot be mistaken for an invoice. Download the PDF and hand or email it to the customer; keep a copy for your own books.
What a receipt should include (US and UK)
Neither the US nor the UK prescribes a receipt format for most private sales, but a receipt that will hold up as proof of payment contains: the seller’s name and contact details, the payer’s name, a receipt number, the date of payment, a description of the goods or services, the amount paid, the payment method, and any tax included in the amount. If you are a UK VAT-registered business and the customer asks for a VAT receipt, it must show your VAT number and the VAT amount – that is the same information as a VAT invoice, so use the invoice generator with the PAID stamp instead.
Receipts are tax records. The IRS generally expects businesses to keep supporting documents for at least three years; HMRC expects self-employed records to be kept for five years after the 31 January filing deadline and company records for six years. A dated PDF in a folder meets both.
Common mistakes
- Receipt without a method of payment. A receipt that does not say “cash” or “check #…” is weak evidence in a dispute.
- Deposit receipts that don’t say “deposit”. State what portion this covers and what remains due.
- Issuing a receipt before the money clears. For checks and pending transfers, wait, or write “subject to clearance”.
- Skipping the receipt number. Numbered receipts make reconciliation trivial; the generator numbers them for you.
Frequently asked questions
What is the difference between a receipt and an invoice?
An invoice asks for payment and shows the amount due. A receipt confirms a payment that has already been made and shows the amount paid, the date and the method. This tool makes receipts; for money still owed use the invoice generator.
Can I make a receipt for a partial payment or deposit?
Yes. Describe the line as a deposit or part payment (for example “Deposit – 50% of quote #EST-0012”) and mention the remaining balance in the notes.
Does the receipt include tax?
Only if you set a tax rate. Enter the rate and the receipt shows tax as a separate line; the Amount paid is the total including tax.
Can I sign the receipt?
The PDF has a “Received by” name. If you need a handwritten signature, print the PDF or open it in a PDF app on your phone and sign it there.
Is a receipt from this tool legally valid?
A receipt is valid when it truthfully records a payment; the format does not matter. The PDF includes everything normally expected – number, date, parties, amount, method – which is what auditors and courts look for.