How to Write a Receipt (With Examples & Free Template)

To write a receipt, put the word "Receipt" and a unique number at the top, then record your business name, the payment date, who paid, what they paid for, the amount, how they paid and any balance still owing. Give the customer the original and keep a copy for your records.

Below: receipt books, itemized receipts, a worked example, and the US and Australian record-keeping rules.

What a receipt must include

A receipt needs enough detail for anyone to see who was paid, by whom, when, how much and for what. Leave any of those out and the receipt stops being useful as proof of payment. Include these 10 items:

1. The word "Receipt" at the top, so nobody mistakes it for a bill.
2. A unique receipt number, in sequence (for example, 0147, 0148, 0149).
3. Your business name and contact details, plus your ABN if you're in Australia.
4. The date the payment was received, not the date you sent the invoice.
5. The customer's name (the person or business that paid).
6. A description of what was paid for, such as the goods, the service, or the job.
7. The amount paid and the currency.
8. Any tax included, such as sales tax in the US or GST in Australia.
9. The payment method: cash, check, card, bank transfer, or a payment app. Never write a full card or bank account number.
10. The balance remaining, plus the related invoice number if there is one.

How to write a receipt by hand

To write a receipt by hand, fill in each of the 10 items above in pen, check the math, initial it, and hand the customer their copy. Do it at the moment you're paid, not later from memory. Here's the order that works:

1. Write "Receipt", the next number in your sequence and today's date.
2. Add your business name and the customer's name.
3. List what they paid for. One line per item if there's more than one.
4. Write the subtotal, any tax, and the total paid.
5. Note the payment method and the remaining balance (usually $0.00).
6. Initial or sign it so it's clear who accepted the money.
7. Give the customer the receipt and keep your copy.

Plain paper gives you no copy, so photograph each receipt before handing it over, or use a receipt book.

How to fill out a receipt book

To fill out a receipt book, write on the top page of the next numbered set, press firmly so the carbon or carbonless (NCR) copy underneath picks up every detail, then tear out the top page for the customer and leave the duplicate in the book. The duplicate is your business record.

A few rules keep a receipt book trustworthy:

• Use the pre-printed numbers in order. Don't skip pages or start a second book before the first is finished.
• Never tear out a duplicate. The gap in the number sequence is the first thing a bookkeeper or auditor will ask about.
• Void mistakes instead of removing them. Write "VOID" across both copies, leave them in the book and start the next number.
• Store finished books. They're part of your records. The IRS lists receipt books among the documents that support gross receipts.

What is an itemized receipt?

An itemized receipt lists every item or service separately, with its quantity, unit price and line total, then shows the subtotal, tax and total. A basic receipt only shows one total amount. Itemizing is what turns "$237.59, paid" into proof of exactly what was bought.

You need one when:

• A client or employer reimburses expenses. They usually need to see what each dollar went to. IRS Publication 463 says a hotel receipt is enough to support business travel expenses if it shows the hotel, the dates and separate amounts for charges such as lodging, meals and phone calls.
• You claim a business expense. Your receipt has to show the purchase was for business. Line items make that obvious.
• The goods carry a warranty or might be returned. A receipt naming the exact item and model links the purchase to the product.

Example receipt

Here's a filled-in itemized receipt for a small electrical job. The 6% sales tax on materials is an example rate only. Sales tax rules vary by state.

Receipt vs invoice

An invoice asks for payment. A receipt confirms that payment arrived. You send the invoice first, and you issue the receipt only after the money is in your account.

A paid invoice can double as a receipt if it's marked paid and shows the payment date, amount, method and balance. For deposits and part-payments, issue one receipt per payment against the same invoice number. Our guide to invoice vs receipt covers the differences side by side, and there's a longer explainer on when to use an invoice or a receipt.

Receipts in Australia: when you need a tax invoice

If you're registered for GST and a customer asks for a tax invoice, you must give them one within 28 days, unless the sale is $82.50 (including GST) or less. A plain receipt doesn't satisfy that request unless it also has the details a tax invoice needs.

For sales under $1,000, the ATO says a tax invoice must clearly show seven things:

1. That it's intended to be a tax invoice.
2. The seller's identity.
3. The seller's ABN.
4. The date it was issued.
5. A brief description of what was sold, including quantity (if applicable) and price.
6. The GST amount, or a statement that the total price includes GST.
7. How far each item is a taxable sale.

For sales of $1,000 or more, it must also show the buyer's identity or ABN.

Receipts in the US: what the IRS expects

The IRS doesn't require any particular receipt format or record-keeping system. It asks for records that clearly show your income and expenses, backed by supporting documents.

According to the IRS page on what records to keep, documents that support your income include cash register tapes, deposit records, receipt books, invoices and Forms 1099-MISC. For purchases and expenses, your documents should identify the payee, the amount, proof of payment, the date and a description showing it was for business. Your receipt becomes that document for your customer, and your copy supports your income.

How long to keep receipts

In Australia, keep most business records for 5 years. In the US, the general rule is 3 years after you file the return the records support. Both have exceptions that run longer.

• Australia: the ATO's 5 years start from when you prepared or obtained the record, or completed the transaction, whichever is later. Some records, like those for depreciating assets, need to be kept longer.
• US: the IRS's record retention periods rise to 6 years if you under-report income by more than 25%, 7 years for a bad debt or worthless securities claim, and at least 4 years for employment tax records. If you don't file a return at all, keep records indefinitely.

Digital receipts

A digital receipt is just as valid as paper, provided it holds the same information and can't be quietly changed. Emailed PDFs, app-generated receipts and photos of paper receipts all count when they're clear and complete.

The ATO accepts digital images of paper records if they're true and clear copies, and once saved you generally don't need the paper. The IRS says electronic records must meet the same principles as paper ones. Practical tips:

• Send receipts as a PDF so the layout looks the same on every device.
• Photograph card-terminal receipts early. The print can fade.

How to make a receipt online for free

The fastest way to make a receipt online is to use a template that has every field built in, fill in the payment details and download a PDF. With InvoiceSonic's free receipt generator, you enter the details and get a clean, numbered receipt without drawing up a layout yourself. Prefer to start from a blank layout? Use the free receipt template.

If clients pay you through Venmo or Zelle, you still need your own receipt showing what the payment was for. Our Venmo invoice template and Zelle invoice template let you bill for the job, then record the payment and send a receipt once the money arrives.

Frequently asked questions

Is a handwritten receipt legally valid?
Yes, as long as it shows who was paid, who paid, the date, the amount and what it was for. The IRS lists receipt books among income records, and the ATO accepts paper records. Keep your duplicate.

Do I need to sign a receipt?
A signature isn't one of the details the IRS or the ATO lists for a record or tax invoice. Initialing a handwritten receipt is still good practice, because it shows who accepted the money, which matters when more than one person takes payments.

What is the difference between a receipt and an itemized receipt?
A basic receipt shows a single total. An itemized receipt lists each item or service with its quantity, price and line total, then the tax and total. Use an itemized receipt whenever the customer may claim the expense or get reimbursed for it.

What do I do if I make a mistake in a receipt book?
Write "VOID" across the original and the duplicate, leave both in the book and use the next numbered receipt. Don't tear the page out. A missing number in the sequence looks like an unrecorded payment.

Is a receipt the same as a tax invoice in Australia?
Not automatically. A receipt only counts as a tax invoice if it has all the details the ATO requires, including your ABN, the GST amount and a statement that it's intended to be a tax invoice.

Can I email a receipt instead of printing it?
Yes. An emailed PDF works for both the customer's records and yours, and it's easier to search than paper. Keep one numbering sequence across paper and digital receipts.