Receipt Generator

What a receipt is, and how it differs from an invoice

A receipt is proof that a payment has been received. You issue it after the customer has paid, as an acknowledgement that the money has arrived and the obligation is settled. An invoice does the opposite job: it is a request for payment that you send before the customer pays. In short, an invoice asks for money and a receipt confirms it was received. Many businesses send an invoice first and then issue a matching receipt once the payment clears.

What to include on a receipt

• A unique receipt number for your records
• The date the payment was received
• The name of the person or business that paid (the payer)
• The amount received and the currency
• The payment method - cash, card, bank transfer, or PayPal
• What the payment was for, or the invoice number it settles
• Your business name, contact details, and logo

When to issue a receipt

Issue a receipt as soon as a payment is received, especially for cash and in-person payments where there is no automatic bank record. Receipts are also useful when a customer pays an invoice in instalments, so each part-payment is acknowledged. If you raised the bill in the invoice generator, you can reuse the same client and amount details here to confirm payment.

Common mistakes to avoid

• Reusing the same receipt number, which makes records hard to trace
• Omitting the payment method, so cash payments cannot be reconciled
• Not linking the receipt to the original invoice number
• Forgetting to keep a copy for your own bookkeeping and tax records