How to Make a Receipt for Cash Payment

Someone just handed you $500 in cash. Maybe it's for freelance work, maybe they bought something from you, maybe they're paying rent. Now what?

You need a receipt. Not just because it's professional, but because cash has a nasty habit of being impossible to prove later. Unlike credit cards or bank transfers, cash leaves no automatic trail. If there's ever a dispute about whether payment happened, you'll both be standing there saying "yes I paid" and "no you didn't" with zero proof.

A proper cash receipt fixes this. Let me show you exactly how to make one.

Why Cash Payments Need Receipts More Than Anything Else

When someone pays with a credit card, there's a record at their bank, a record at your bank, a record with the payment processor, and probably an email confirmation. That's four different places proving the transaction happened.

When someone pays with cash? Nothing. Unless you create documentation.

Cash receipts protect you in these scenarios:

• Customer claims they never received service (you have proof they paid)
• Someone disputes the amount paid (the receipt shows exactly what was agreed)
• Tax time comes and you need to prove income (receipts are your documentation)
• You're audited and the IRS wants to see where money came from
• A customer needs proof of purchase for warranty or returns
• You need to reconcile your books and figure out where $500 came from

The receipt is the only proof that this transaction ever happened. Take it seriously.

What Every Cash Payment Receipt Needs

Cash receipts have the same elements as any receipt, with a few extra details that matter specifically for cash:

Your Information:

• Business name (or your name if you're an individual)
• Address
• Phone number or email
• Business registration number (if applicable)

Transaction Details:

• Receipt number (sequential: #001, #002, etc.)
• Date of payment
• Customer/payer name

What Was Paid For:

• Description of goods or services
• Quantity and unit price (if applicable)
• Line totals

Payment Information:

• Subtotal
• Tax (if applicable)
• Total amount
• Payment method: CASH (make this clear and prominent)
• "PAID IN FULL" statement

Signatures:

• Your signature (as the person receiving money)
• Customer's signature (optional but recommended for large amounts)

The "PAID IN FULL" notation is especially important for cash. It's explicit confirmation that the entire amount was received and no balance is owed.

How to Write a Cash Receipt Step by Step

Let's walk through creating a cash receipt from scratch.

Step 1: Start with Your Business Header

At the top of the receipt, include your business information. This identifies who received the payment:

Johnson Landscaping
1234 Oak Street
Portland, OR 97201
(503) 555-0198
mike@johnsonlandscaping.com

If you don't have a business name, use your full legal name. The point is that the person reading this receipt can identify who they paid.

Step 2: Add Receipt Number and Date

Every receipt needs a unique number for tracking. Start at #001 and work your way up. Never reuse numbers.

Receipt #: 0047
Date: January 15, 2026

Use the date the cash was actually received, not when the work was done or when payment was due.

Step 3: Identify the Payer

Write the customer's full name. This connects the payment to a specific person:

Received From: Sarah Mitchell

For business-to-business transactions, include their company name too.

Step 4: Describe What Was Paid For

Be specific. "Services" doesn't help anyone. Describe exactly what the payment covers:

Description                           Amount
-----------------------------------------
Fall yard cleanup (4 hours)          $200.00
Leaf removal and disposal             $75.00
Gutter cleaning                       $50.00
-----------------------------------------
Subtotal:                            $325.00
Tax (0%):                              $0.00
TOTAL:                               $325.00

If you're selling items, list each item separately with quantities and prices.

Step 5: Note the Payment Method Clearly

This is crucial. Make it absolutely clear this was a cash transaction:

Payment Method: CASH
Amount Received: $325.00

Some people also note the denominations received for large cash payments: "Received: 3 x $100 bills, 1 x $20 bill, 1 x $5 bill". This might seem excessive, but it prevents disputes about change given or amounts paid.

Step 6: Add Confirmation Language

Include explicit language that payment was received:

PAID IN FULL

This receipt confirms payment has been received in full 
for the services described above.

Step 7: Sign It

Your signature validates the receipt. For larger amounts, having the customer sign acknowledging they received a copy adds another layer of protection:

Received by: ______________________ (your signature)
             Mike Johnson

Customer acknowledgment: ______________________ (optional)
                        Sarah Mitchell

Complete Cash Receipt Example

Here's what a finished cash receipt looks like:

JOHNSON LANDSCAPING
1234 Oak Street
Portland, OR 97201
(503) 555-0198
mike@johnsonlandscaping.com

-------------------------------------------
CASH RECEIPT
-------------------------------------------

Receipt #: 0047
Date: January 15, 2026

Received From: Sarah Mitchell
Address: 567 Maple Drive, Portland, OR 97205

Description                           Amount
-------------------------------------------
Fall yard cleanup (4 hours)          $200.00
Leaf removal and disposal             $75.00
Gutter cleaning                       $50.00
-------------------------------------------
Subtotal:                            $325.00
Tax:                                   $0.00
TOTAL AMOUNT:                        $325.00

Payment Method: CASH
Amount Received: $325.00

*** PAID IN FULL ***

This receipt confirms full payment has been received
for the services listed above.

Received by: _Mike Johnson_____________
Date: January 15, 2026

Thank you for your business!

Clean, complete, and legally useful. Both parties have clear documentation.

Different Methods for Creating Cash Receipts

Receipt Books (The Classic Way)

Go to any office supply store and grab a receipt book for $5-10. These have carbon copies, so you automatically get a duplicate.

Pros:

• No technology needed
• Works anywhere, anytime
• Carbon copy is automatic
• Cheap

Cons:

• Handwriting can be messy
• Takes longer than digital
• Have to do math manually
• Physical copies can be lost

Best for: Occasional cash transactions, service businesses working on-site, anyone who prefers paper.

When using a receipt book, press firmly so the carbon copy transfers clearly. Write legibly. A receipt nobody can read is worthless.

Online Receipt Makers

Receipt generators let you create professional receipts in minutes. Fill out a form, it generates a formatted PDF.

Pros:

• Professional appearance
• Automatic calculations
• Easy to email copies
• Digital backup built-in
• Customizable templates

Cons:

• Requires internet access
• Need a device

Best for: Regular transactions, businesses that want professional appearance, anyone who emails receipts.

Spreadsheet Templates

Create a receipt template in Excel or Google Sheets. Set up formulas to auto-calculate totals. Save a new copy for each transaction.

Pros:

• Free (if you have Excel/Sheets)
• Customizable
• Automatic math
• Can track all receipts in one file

Cons:

• Initial setup time
• Formatting can be tricky
• Less polished than dedicated tools

Best for: People who already work in spreadsheets, businesses that want receipt tracking built in.

Mobile Apps

Apps like Square, Wave, and PayPal let you generate receipts on your phone. Even for cash payments, you can create a "cash sale" receipt.

Pros:

• Create receipts anywhere
• Professional templates
• Often free
• Email immediately

Cons:

• Requires smartphone
• May need cellular/wifi
• Learning curve

Best for: Service businesses, mobile vendors, anyone who works on the go.

Special Cash Payment Situations

Partial Cash Payments

If someone pays part of a larger amount in cash:

Total Amount Due: $1,000.00
Cash Payment Received: $400.00
REMAINING BALANCE: $600.00

This is a partial payment. Balance due by February 1, 2026.

Issue another receipt when they pay the remainder. Don't mark "PAID IN FULL" until the full amount is received.

Deposits or Advance Payments

For deposits on future work:

DEPOSIT RECEIPT

Deposit for: Kitchen renovation project
Deposit Amount: $2,000.00 (CASH)
Total Project Cost: $8,000.00
Remaining Balance: $6,000.00

This deposit secures scheduling for work beginning February 15, 2026.
Deposit is [refundable/non-refundable] per contract terms.

Make clear what the deposit is for and whether it's refundable.

Change Given

If you give change on a cash payment:

Amount Tendered: $100.00 (CASH)
Total Due: $67.50
Change Given: $32.50

Document this on the receipt. It prevents disputes about whether correct change was given.

Large Cash Payments

For cash payments over $500, consider additional precautions:

• Count the money in front of the customer
• Note denominations received
• Have customer sign the receipt
• Keep your copy somewhere secure immediately
• Consider asking for ID for your records

For payments over $10,000 in cash, there are federal reporting requirements (Form 8300). If you regularly receive large cash payments, consult a tax professional about compliance requirements.

Cash Receipt Best Practices

Always give a receipt. Even if they say they don't need one. Hand it to them anyway. Your copy protects you.

Number receipts sequentially. #001, #002, #003. Never skip numbers or reuse them. If you mess up a receipt, write "VOID" on it and keep it in your records.

Be specific about what was paid for. "Services rendered" is vague. "3 hours of plumbing repair at 456 Main St, replacement of bathroom faucet" is specific and useful.

Keep your copies organized. Folder by month, or by customer, or by property. Whatever system you'll actually maintain. These records matter at tax time.

Use "PAID IN FULL" carefully. Only write this when the full amount is actually received. For partial payments, note the balance remaining.

Consider having customers sign. Especially for amounts over $100. Their signature acknowledging receipt creates mutual documentation.

Photograph or scan everything. Paper fades and gets lost. Take a phone photo of every receipt you issue, or scan them weekly. Digital backup is essential.

Cash Receipts for Different Situations

Freelance Work

You finished a project and the client pays in cash:

RECEIPT

Creative Design Services
Jane Smith, Graphic Designer
jane@janedesign.com

Receipt #: 2026-012
Date: January 15, 2026

Client: Riverside Cafe
Contact: Tom Anderson

Service: Logo design and branding package
- Initial concepts (3 variations)
- Two revision rounds
- Final files in all formats
- Brand style guide

Total: $1,200.00
Payment Method: CASH
Status: PAID IN FULL

Thank you for your business!

Private Sale

You sold your old laptop to someone from Craigslist:

BILL OF SALE / RECEIPT

Date: January 15, 2026

Seller: Michael Chen
Address: 789 Pine Street, Seattle, WA 98101
Phone: (206) 555-0147

Buyer: David Rodriguez

Item: MacBook Pro 14" (2023)
Serial Number: C02XG123456
Condition: Used, good condition
Includes: Laptop, charger, original box

Sale Price: $1,400.00
Payment: CASH

Item sold AS-IS. No warranty implied or expressed.

Seller Signature: _________________ Date: _________
Buyer Signature: _________________ Date: _________

For private sales, both signatures are important. See our full guide on making receipts for selling personal items for more on this.

Rent Payment

Your tenant pays rent in cash:

RENT RECEIPT

Landlord: ABC Properties
123 Landlord Lane
Chicago, IL 60601

Receipt #: R-2026-001
Date: January 15, 2026

Tenant: Emily Watson
Property: 456 Tenant Ave, Unit 2B, Chicago, IL 60602

Payment For: January 2026 Rent
Amount: $1,500.00
Payment Method: CASH

PAID IN FULL

Landlord Signature: _________________

Many jurisdictions legally require landlords to provide receipts for cash rent payments. Check your local laws.

Service Call

A plumber, electrician, or other service provider receiving cash on-site:

SERVICE RECEIPT

Quick Fix Plumbing
Licensed & Insured
License #PLB-12345

Receipt #: 0892
Date: January 15, 2026

Customer: Robert Kim
Service Address: 321 Oak Street, Austin, TX 78701

Service Performed:
- Diagnosed slow drain in kitchen
- Cleared blockage in main line
- Tested all drains

Labor (2 hours @ $85/hr): $170.00
Materials: $0.00
Service Fee: $50.00
--------------------------
Total: $220.00

Payment: CASH
Status: PAID IN FULL

30-day warranty on work performed.

Common Mistakes to Avoid

Not writing "CASH" explicitly. If the receipt doesn't say how payment was made, it's ambiguous. Always note the payment method clearly.

Forgetting to keep a copy. You hand over the receipt and forget to photograph or copy it. Now you have no record. Always keep copies.

Vague descriptions. "Work done" or "items sold" tells nobody anything. Be specific about what was provided.

No receipt number. Random unnumbered receipts look unprofessional and are hard to track. Number everything sequentially.

Missing date. A receipt without a date is nearly useless for tax purposes or dispute resolution.

Not getting a signature for large amounts. For payments over a few hundred dollars, the customer's signature creates mutual protection. Ask them to sign.

Throwing away voided receipts. If you mess up a receipt, don't throw it away. Write "VOID" on it and keep it. Gaps in your receipt numbers raise questions.

Taxes and Cash Payments

Cash income is still taxable income. The IRS doesn't care how you received the money - they care that you report it accurately.

Keep these records:

• Copies of all cash receipts you issue
• A log or ledger of cash received
• Bank deposit records (when you deposit the cash)

Match your records: Your receipts should add up to your reported income. If you issued $50,000 in cash receipts during the year, your income should reflect that.

The $600 threshold: If you receive $600 or more from a single customer in a year, they may need to issue you a 1099. Cash doesn't exempt you from this.

Keep records for 7 years: The IRS can audit back 7 years for substantial errors. Keep all your cash receipt records for at least this long.

For a deeper dive on organizing financial records, check out our guide on organizing receipts for taxes.

The Bottom Line

Cash payments need receipts more than any other payment type because cash creates no automatic paper trail. A proper receipt protects both you and your customer by documenting exactly what was paid, when, for what, and to whom.

The format doesn't have to be fancy. A simple receipt from a $5 book works fine. What matters is including all the essential elements: your info, their info, what was paid for, the amount, "CASH" as payment method, and "PAID IN FULL" when appropriate.

Create the receipt immediately when you receive cash. Don't wait until later - later becomes never. Hand them a copy, keep a copy, and move on with your day knowing the transaction is properly documented.

Whether you use receipt templates, a receipt book, or accounting software, the habit of documenting every cash payment will save you from headaches, disputes, and tax problems down the road.

Now go get that receipt book. Or bookmark a receipt generator. The next time someone hands you cash, you'll be ready.