When people or entities in the United States conduct deals or sales transactions and use cash as a payment method, there are several ways to confirm such payment. One of them is a Cash Payment Receipt. It is a simple piece of paper that contains general information about the deal (or sale):
The straightforward structure lets people issue such receipts in seconds. The Cash Payment Receipt is vital for both the customer and the seller.
The parties to the deal shall agree to issue a Cash Payment Receipt for at least three important reasons:
Obtaining the receipt helps the customer provide evidence of payment and the seller to prove the fact of money delivery. If the customer wants to get the money back (for example, if the purchased product has defects or for any other reason), bringing up the receipt typically facilitates the cash return process.
For entities or self-employed people, such receipts are a way to count their taxes correctly. If public authorities somehow detect that you are hiding your cash payments income and avoiding to pay taxes, you might face some serious legal consequences.
It is easy to track your income when you make all the payments with credit or debit cards. You can just check the balance on your account. But what about cash? That is another reason to issue payment receipts: with them, you can see how much money you have gotten in cash during a certain period.
Each time you issue a cash payment receipt, remember to make several copies of it. You have to keep one for yourself, give another to the customer, and have one spare.
We highly recommend you to register all the receipts you give out in a special journal. Such a journal ensures that none of the cash payment receipts is lost and that all the cash income you have gotten is registered. Thus, you will make your accountant’s life much easier when preparing the financial report.
The legal forms and receipts completion in the US can be tricky sometimes. That is why we have prepared helpful guidelines to complete a Cash Payment Receipt. Check out the steps below.
You should get the correct receipt template of the Cash Payment Receipt before completion. Our advanced form-building software will help you to generate any legal form template you need. We highly recommend using it to obtain the proper file.
On the right-hand side, you need to insert the receipt’s issuing date.
On the left-hand side, enter the full name of the person who gives you cash for services or goods.
Next up, you should fill out the full address of the entity that receives the cash (or your address, if you are the cash recipient).
After adding the address, write the total payment amount in US dollars given to you by the payer. You should write it in letters first, and then repeat the sum in numbers.
In the Cash Payment Receipt, you should explain what you have received the money for. Add the services or goods that the customer has paid for in the relevant blank space.
If the customer pays you piece by piece, you can reflect this fact in the receipt. Near the “Total Due”, insert the amount the customer owes you in total. Below, you can enter the paid sum and the sum left to pay (“Balance Due”).
You have to choose the payment method that the customer is willing to use between the three options: “Cash”, “Money Order”, or “Check”.
Here, you should write either your name or the entity’s name (it depends on the recipient).
Each receipt should have at least two copies: one for the customer and another for the cash recipient. The third copy is made additionally, if you need to prove the payment in governmental institutions (for instance, for tax matters).