A small business receipt is the written acknowledgment a small business received payment in exchange for goods or services it provided to a customer. They include information about the seller, sometimes the buyer, the purchased goods or services, and the payment itself. Buyers need receipts if they ever want to return or exchange purchased goods. They are required for businesses to save for tax purposes. They can be printed and delivered in person or sent electronically by email.
The IRS requires profitable businesses to save receipts for three years after filing them. If a company claims a loss for a taxable year, it has to keep that year’s receipts for at least seven years after filing.
What to Include
- Business information (name, address, phone, email);
- Customer information (name, address, phone, email);
- Description of goods or services exchanged for payment;
- Payment method (cash, check, credit card, other);
- Receipt number;
- Signatures of both parties;
- Summary of charges:
- Cost of the good(s) or service(s) sold (per unit, hour, project, etc.),
- Quantities of the good(s) (if applicable),
- Subtotal,
- Tax rate,
- Total taxes due,
- Total amount due,
- Amount paid, and
- Outstanding balance (if applicable); and
- Transaction date.