A receipt is a written acknowledgment that the issuer has received the specified sum for the purpose stated. It is a legal document to prove commercial transactions, and the Internal Revenue Service mandates issuing receipt for any payment received for services rendered by individuals and firms.
Download the free sample of personal receipt for services here. This is a generic receipt for payments received by an individual and serves any purpose and any transaction. It suits the independent contractor best.
The receipt is self-explanatory. Modify all writings mentioned inside brackets and substitute with the instructions specified.
The Parties and the Amount
The first element of a proper receipt is the name and address of the payer and payee, and the second element is the amount involved.
Include your name, that is the name and address of the party receiving the payment upfront. Make sure to include the city, state, and zip. If you have a separate office, include your office address, or if you are working out of a home office, write down your residential address. A Post Office Box address is also appropriate.
Specify the amount received, in figures and words to eliminate any chance of ambiguity.
Next, mention the person or the firm making the payment. Strike off whichever is not applicable from the three options of Mr., Ms. And M/s. Include the full name and the address with city, state, and zip code. Make sure the name and address are the same as in the work order or agreement executed for the work.
Make sure to strike out whichever is not applicable from the two options of “full payment" and “partial payment."
Description of Service
The most important component of the sample of a personal receipt for services is the description of service. Provide a comprehensive description of the reason why the payer makes the payment and why the payee receives the payment. Make sure to include the following points
- If payment is for work already executed, specify likewise, and provide details of the work executed.
- If payment is in advance, specify in clear terms the work promised for this payment, with the timeline of work.
- If payment is partial payment, specify the installment number, and the balance amount payable.
- Include any other terms and conditions. If the terms and conditions are in a separate agreement, mention a reference to such agreement here.
The other elements in the receipt serve to lend clarity to the transaction.
Opt for the mode of payment, cash, check, money order, or any other. If payment is by check or money order, make sure to specify the number and date of the instrument in the receipt.
Sign the receipt, and include the place and date of signature. Witnesses are optional, and usually included when the amount or the magnitude of the work is high.
Another option, not included in the sample receipt for services is to include a reference number. This has no relevance to the person who receives the receipt, but allows you, or the person issuing the receipt to keep track of receipts and payments. One good way to do so is to index the reference number by date, as 2011:1, 2011:2, and so on. If dealing with regular clients, assign a code number for each client, and group the serial number client wise, such as 1/2011:1, 1/2011:2, 2:2011:1, and so on.
This is a generic receipt, and can be customizable as required. If you are looking for free cash receipt template instead, follow this link.
- WordNet. "Receipt." https://wordnetweb.princeton.edu/perl/webwn?s=receipt. Retrieved March 31, 2011.
- US Attorney Legal Services. "Cash Receipt Templates and Forms." https://www.usattorneylegalservices.com/cash-receipt-template.html. Retrieved March 31, 2011.
Image Credit: Wikimedia Commons