Cash Deposit Receipt Template

A seller of an item issues this receipt when they receive deposit funds from a buyer, or after a bank receives a cash deposit from a bank member. Cash deposits to bank accounts are the most common financial transactions performed by all business entities. In private sales transactions, a deposit represents good faith by the buyer that they intend to make full payment by the seller’s deadline. It is up to a seller to decide whether they will accept deposits in cash, as well as if deposits are refundable or not. Cash deposits benefit private sales because sellers can avoid electronic transaction fees.

Table of Contents

• Should You Get a Receipt for a Cash Deposit?
• How to Record Cash Deposits
  • Inflow vs. Outflow
    • Cash “Inflow”
    • Cash “Outflow”

Should You Get a Receipt for a Cash Deposit?

Cash deposit receipts are essential for accurate financial record-keeping. They are proof that a buyer delivered cash funds to a seller or a bank member to their bank. These receipts are particularly important when there is no other written or electronic payment record like there would be with payments made by check, card, or wire transfer. They also prevent sellers from claiming that they never received a deposit or that a deposit amount differs from what the buyer claims they paid. Getting a deposit receipt from a bank teller in person is vital for individuals and small businesses dealing with banks. Suppose the bank encounters any ledger errors due to technical problems or human error. In that case, it is challenging to prove that the bank member ever made a deposit without the existence of a cash deposit receipt. On this note, it’s also good to be wary of night drops at banks because the deposits are even more challenging to trace than those made in person with a teller during regular business hours.

How to Record Cash Deposits

First and foremost, banks, businesses, and sellers should always include the following information on a cash deposit receipt:

• The amount of cash deposited;
• The date and time the deposit was made;
• The name of the person or entity that is receiving the deposit;
• Confirmation of receipt, whether that is a confirmation number from a bank or the dated signature of a seller;
• A unique, identifying receipt or transaction number; and

For sales transactions: 

• What the deposit is for;
• Whether or not the deposit is refundable; and
• The remaining balance of the purchase.

Inflow vs. Outflow

Small businesses must record their cash deposits appropriately in their ledgers. Depending on the bank and account type, cash deposits sometimes hit an account immediately but can also sometimes take time to process. The most important thing to understand with recording cash deposits is that “inflow” and “outflow” deposits are recorded differently. Cash “inflow” is when a business deposits cash into its own bank account or a client deposits cash into the business’s bank account. If the business makes the deposit, its “cash in hand” ledger must be debited according to the cash deposit made into the account. If a client makes the deposit, the client’s accounts receivable balance needs to decrease per the increase in the business account created by the client’s cash deposit. Cash “outflow” is when a business entity deposits cash into another party’s bank account. In this case, the business needs to decrease that party’s accounts payable balance to reflect the amount of the cash deposit.