Updated August 02, 2023
A business receipt template is an acknowledgment of a payment received for a product or service provided by a company. Unlike an invoice, which is given to customers and clients for the ‘demand of payment’, a business receipt will only be issued after the exchange is complete. Businesses will generally require a receipt when requested to return or refund a purchase. A receipt may also be needed to verify the legitimacy of purchase for tax purposes.
Why Use Receipts?
Businesses are required to keep receipts for proper record-keeping in order to pay taxes every quarter or at the end of each year. In today’s environment, receipts are mostly stored electronically and the use of a physical receipt is only used when the customer does not provide an electronic option such as e-mail. A receipt must be given to a customer as a record of payment.
Internal Revenue Service (IRS) – The IRS requires all profitable businesses to save their receipts for three (3) years. If for any year a business claimed a loss their receipts must be kept for seven (7) years.