How to Write a Receipt (Step-by-Step Guide)

Whether you're running a small business, freelancing, or just sold something to a neighbor, knowing how to write a proper receipt is important. A good receipt protects both you and your customer, and it's actually pretty simple once you know what to include.

What Every Receipt Needs

A valid receipt should have these basic elements:

Your Business Info

• Your business name
• Address
• Phone number or email

Transaction Details

• Date of sale
• Receipt number (just number them sequentially: #001, #002, etc.)
• Customer's name

What Was Sold

• Description of items or services
• Quantity
• Price per item
• Total for each line

The Money Stuff

• Subtotal
• Tax amount (if applicable)
• Final total
• Payment method (cash, card, check, etc.)

That's really it. Everything else is optional, though some businesses add return policies, thank you messages, or warranty info.

Writing a Receipt By Hand

If you're using a receipt book from an office supply store:

1. Fill in your business info at the top (many receipt books have a spot for a stamp or you can write it)
2. Write the date and receipt number
3. Add the customer's name
4. List each item with its price
5. Add up the subtotal
6. Calculate tax if needed
7. Write the total
8. Note how they paid
9. Sign it

Pro tip: Write neatly! A receipt nobody can read is useless. If your handwriting is terrible, consider printing them instead.

Example Receipt

Here's what a simple service receipt might look like:

Joe's Lawn Care
123 Main Street
(555) 123-4567

Receipt #045
Date: March 22, 2025
Customer: Sarah Johnson

Lawn mowing                    $40.00
Hedge trimming                 $25.00
Yard waste disposal           $10.00

Subtotal:                      $75.00
Tax (7%):                       $5.25
Total:                         $80.25

Paid: Cash

Thank you for your business!

Simple, clear, and has everything needed.

Digital Receipts

Most businesses today use some kind of digital system. Even if you're small, you have options:

Phone Apps - Square, PayPal, Venmo all have receipt features built in

Invoicing Software - FreshBooks, Wave, and QuickBooks let you create professional receipts

Online Tools - Services like online receipt makers let you create custom receipts without expensive software

Spreadsheets - You can make a simple receipt template in Excel or Google Sheets

Digital receipts are nice because:

• No messy handwriting
• Automatic calculations (no math errors)
• Easy to email to customers
• Automatic backup copies
• Professional appearance

Common Mistakes to Avoid

Missing the Date - Always include the date. It's crucial for returns, taxes, and disputes.

Vague Descriptions - "Supplies" tells nobody anything. Be specific: "Office paper, 5 reams" is much better.

No Receipt Number - Number your receipts. It helps you track sales and looks more professional.

Forgetting Tax - If you should be charging sales tax, make sure it's shown separately.

Illegible Writing - If writing by hand, take your time and write clearly.

Do You Legally Need to Give Receipts?

It depends on where you are and what you're selling. Many places require businesses to offer receipts, even if customers don't want them. Check your local regulations.

But honestly, even if not required, you should give receipts anyway:

• They protect you in disputes
• They make you look professional
• They help customers track their spending
• They're necessary for customers who need to submit expenses
• They help you keep accurate business records

What About Taxes?

If you're running a business, keep copies of all receipts you issue. The IRS typically wants you to keep records for at least 3 years, though 7 years is safer.

Your receipts prove your income, which you'll need for tax time. Even if you're using an app or software, keep regular backups.

Quick Tips

For Regular Sales - Get a receipt book from any office supply store. They're like $5 and include carbon copies.

For Online Sales - Your platform (Etsy, eBay, etc.) usually generates receipts automatically.

For Services - Consider using invoicing software. It looks more professional and helps you track who owes you money.

For Occasional Sales - A simple handwritten receipt is fine. Just make sure it includes all the key info.

When You Need Something More Official

If you're doing a high-value transaction (like selling a car or expensive equipment), consider:

• Using a bill of sale template
• Having it notarized
• Including warranty information
• Keeping multiple copies

For regular business transactions, a standard receipt is usually plenty.

The Bottom Line

Writing a receipt isn't complicated. Include who, what, when, how much, and how they paid. Write legibly (or print it), keep a copy for yourself, and you're done.

As your business grows, you'll probably want to upgrade to digital receipts for the convenience and professional appearance. But when you're starting out, a simple handwritten receipt from a receipt book works perfectly fine.

The most important thing? Just make sure you actually give receipts. It protects everyone and makes your business more trustworthy.