How-to

How to write a receipt that actually holds up

The seven pieces of information every valid receipt needs, plus the mistakes that make one useless when a customer or an auditor asks questions.

21 July 2026 · 5 min read

A receipt is proof that money changed hands. That is its whole job — and it only does that job if a stranger reading it six months later can tell who paid whom, how much, for what, and when.

The seven things every receipt needs

  1. The word "Receipt" and a unique receipt number. Sequential numbering (REC-0001, REC-0002) makes your records searchable and shows nothing is missing.
  2. Your business name and contact details. Trading name, address, phone or email. If you are registered for sales tax or VAT, add the registration number.
  3. The customer's name. "Cash sale" is acceptable at a counter, but a named customer is far stronger evidence.
  4. The date of payment — the date the money arrived, not the date you did the work. Those can differ, and it matters at year end.
  5. An itemised description. One line per item or service, with quantity and unit price. "Services rendered — $900" is the single most common reason a receipt gets questioned.
  6. Totals broken out. Subtotal, discount, tax rate and tax amount, then the grand total. Showing the tax separately is a legal requirement in many countries.
  7. The payment method. Cash, card, bank transfer, or cheque — plus a reference number if there is one.

What makes a receipt fall over

  • Editing an issued receipt. Once a receipt is out, it is a record. Issue a corrected one with a new number and note that it replaces the old one.
  • Reusing numbers. Two documents with the same number means neither can be trusted.
  • No tax breakdown. If the customer needs to reclaim tax and cannot see it, they will come back.
  • Handwriting where it matters. Fine for a market stall, weak for a $4,000 job.

Receipt or invoice?

An invoice is a request for payment. A receipt is confirmation of payment. Many jobs need both: invoice first, receipt once the money lands. Do not send an invoice and call it a receipt, and never mark a receipt as paid before the funds have actually cleared.

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