A payment receipt helps with record-keeping for your business, but knowing how to create one can be challenging.
In this guide, you'll learn what payment receipts are, why they're important and what information they need to include. We'll also take you through how to create your own payment receipt using a computer or accounting software.
What is a payment receipt?
A payment receipt is a confirmation in writing to your buyer that you've received their payment. It's different from an invoice, which tells buyers what they still need to pay. You can use a copy of an invoice showing the payment as a receipt.
Receipts are most noticeable in retail and hospitality businesses, where customers will get a paper receipt after paying.
Why is a payment receipt important?
Receipts of payment are important, regardless of the size of your business or sale total value.
Payment receipts can help you keep track of which invoices have been paid and which are still outstanding. They can also help safeguard your business against fraud — if your customer wants a refund, repair or replacement, you can ask to see their receipt to prove what they purchased from you and when.
And payment receipts aren't just good for you and your business — they're great for your customers too. When you give someone a payment receipt, they have concrete proof that their money ended up where it was intended to go. Issuing payment receipts demonstrates that you and your business are proactive, transparent and trustworthy.
What to include on a payment receipt
What you should include on a payment receipt depends on your business as well as specific requests from your customers. This could include GST information, payment method and customer information, but must clearly state that the document is a payment receipt outlining:
Receipt number
A receipt number should be included on every payment receipt to identify the transaction.
Business details and contact information
Your business details and contact information need to be clearly stated. This includes your business name, your Australian Business Number (ABN) and your contact information.
Payment date
A payment date should be included on each payment receipt.
Details on product or service
Details the product or service covered by the payment you've received. If you previously issued an itemised invoice for the payment, the product or service details will likely be the same.
Amount due
Amounts that were due should also be included, along with a list of items, their cost per unit, subtotals and the total payment made.
How to create a payment receipt
How you create a payment receipt will depend on your preferred tools, your time requirements and your design preferences. Maybe you want to send them out right away, or perhaps you want a document you can personalise to suit your brand identity. Here are some options for how you could supply payment receipts.
Use accounting software
Accounting software from MYOB lets you easily convert invoices into receipts to email or print for customers.
Create a payment receipt in Word/Docs
You can create a payment receipt in Microsoft Word and Google Docs or other word processing software. Many have libraries of templates you can customise for your business. Or, if you're design-minded, you might prefer to make your document from scratch.
Use a downloadable payment receipt template
Using a downloadable payment receipt template is a good option if you don’t have access to great accounting software. You can find many of them with a quick online search.
Payment receipt FAQs
Are payment receipts required?
In Australia, you're required to provide a payment receipt for any sale over $75. That said, your customers are within their rights to request a receipt for purchases below $75, and you're obligated to provide one within seven days of their request. Although it's not always a legal requirement, you should consider providing receipts for all sales, regardless of the total value.
Is a payment receipt the same as an invoice?
A payment receipt isn't the same as an invoice. You issue a sales or tax invoice to your customer when requesting payment for a product or service. However, you can use an invoice as a receipt if it shows that payment has been made and there's nothing still due.
What are the different types of receipts?
For many small businesses, a digital receipt will be the easiest way to provide your customers with proof of payment. This is especially true for service-based businesses. For businesses operating from brick-and-mortar shops or providing in-person services, a physical receipt may be more convenient. As long as the document includes the details listed in this guide, your payment receipts can be digital, printed or hand-written.
A receipt for success
It's a good idea to offer a payment receipt for every sale, even small ones. It gives customers proof of payment, makes it easier to manage your finances and helps protect against fraud. It's also great for your reputation – clear, professional documentation adds to the impression that you're a serious, trustworthy operator.
Your receipts can be digital, handwritten or printed and customised, as long as they include all the key information.
The simplest way to create and send payment receipts is to use accounting software like MYOB — you can easily convert invoices into receipts and send them at the click of a button. Get started today!
Disclaimer: Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.