A receipt is more than proof of payment. It is a record for your customer, your business, and sometimes tax authorities.
A clear receipt reduces disputes, helps with bookkeeping, and makes your business look more professional. This guide explains how to create a proper receipt, what to include, and common mistakes to avoid.
What is a receipt?
A receipt confirms that payment has already been made.
It should clearly show:
- Who received the payment
- Who made the payment
- What was paid for
- How much was paid
- When the payment was completed
Unlike invoices or quotes, receipts should never ask for payment.
When you should issue a receipt
You should issue a receipt when:
- Payment has been received in full
- A customer requests proof of payment
- You need a record for accounting or tax purposes
Receipts are commonly used by:
- Small businesses
- Freelancers
- Online sellers
- Service providers
- Retail and point of sale businesses
What every professional receipt should include
Seller details
This identifies who received the payment.
Include:
- Business or store name
- Address or location
- Contact details such as email or phone
Buyer details
This identifies who made the payment.
For individuals:
- Name
- Email or contact information
For business customers (optional but recommended):
- Business name
- Business address
- Tax or GST number
Receipt number
A unique receipt number helps with:
- Record keeping
- Refunds
- Customer support
- Audits
Simple formats work well, such as:
- R-001
- RCPT-2025-12
- 10548
Date paid
Always show the date the payment was completed, not the date the receipt was created.
Using a clear date format avoids confusion for international customers.
Payment method and reference
This helps both you and the customer identify the transaction.
Examples:
- Card
- Cash
- Bank transfer
- Online payment
Optional references include:
- Transaction ID
- Order number
- Payment reference
Line items
Each receipt should list what the customer paid for.
Include:
- Description
- Quantity
- Unit price
- Line total
Clear descriptions make refunds and disputes easier to handle.
Discounts
If a discount was applied, it should be visible on the receipt.
Discounts can be:
- Percentage based
- Fixed amount
Showing discounts clearly builds trust and avoids confusion.
Taxes
Receipts often need to show tax details.
You may need to:
- Add tax on top of prices
- Include tax in prices
- Show multiple tax types such as GST or VAT
Each tax line should clearly state:
- Tax name
- Percentage rate
- Whether it is included or added on top
Total paid
The final total should clearly state the amount that was paid.
Use clear wording such as:
- Total paid
- Amount received
This confirms that no balance is outstanding.
Notes and footer
Optional but useful additions:
- Confirmation message
- Refund policy
- Record keeping reminder
Keep this section short and readable.
Common receipt mistakes to avoid
These issues cause confusion and disputes:
- Missing receipt number
- No payment date
- Unclear tax handling
- Discounts not shown
- Asking for payment on a receipt
A receipt should always confirm payment, not request it.
Creating receipts quickly and accurately
Manually formatting receipts can be slow and error-prone. A browser-based receipt generator helps keep everything consistent.
With UseKit’s receipt tool, you can:
- Add seller and buyer details
- Include business customer fields
- Add line items, discounts, and multiple taxes
- Choose currency and formatting
- Automatically calculate totals
- Export as PDF, Word, or Excel
- Save and reload receipt templates
Everything runs locally in your browser.
Use our Receipt Generator
Use our Receipt Generator:
Create a receipt now
No signup required. Nothing is uploaded or stored.
How receipts fit into your workflow
A simple flow for most businesses:
- Send a quote or estimate
- Convert it into an invoice
- Issue a receipt once payment is received
Keeping each document clear and separate helps with bookkeeping and customer trust.
Who this guide is for
This guide is useful if you:
- Accept payments from customers
- Need proof of payment records
- Work with business or individual clients
- Want clean documents without accounting software
Professional receipts protect both you and your customers.
Final thoughts
A good receipt is simple, clear, and complete.
If a customer can quickly see what they paid for, how much they paid, and when the payment was made, your receipt has done its job.