A cash receipt sounds simple and straightforward. A customer pays you in cash, and you offer them a record of the transaction by using your cash receipt book. In better terms, cash receipts describe all the money that enters your business where a receipt is immediately provided, via cash till or a receipt book and will be balanced with the accounts you hold within your sales ledger.
What Kinds of Receipts Are Paid in Cash?
A sale of a product or service is not the only reason that you would offer an entry from your cash receipt book. When you are making a VAT return, offering dividends or income from an individual’s investment, completing an insurance claim or providing a receipt for rent received, are all reasons to use your receipt book.
When you are likely to issue a few receipts, regularly, you may wish to organize a cash receipt book that is customized with your organization’s information. This will save you or any employees writing your name, address and telephone number each time you issue a receipt.
For most businesses, it is time and effort resourceful to use either an online software program to manage all your accounts or to add a similar program to your favorite computer system, so that you can enter information regularly and efficiently.
By using a cloud-based app, you can gain access to your accounts wherever you are, perhaps using your cell phone or tablet computer. Updating your accounts regularly is far easier and more effective than trying to remember everything that needs entering once a month or even later in the year.
Your cash receipt entries in your accounting software will always need to specify the date and the relevant account. The customer’s name and details will need to be entered, particularly when they need to take the receipt with them as their proof of purchase, in the case of any returns required.
The detail in your cash receipt book will describe the transaction. You may need to enter a discount code, amount or reason when you are offering a benefit to the customer. The total amount received is the last and accurate piece of information that you require.