If you plan to sell services or goods to potential customers, you need to work with a cash invoice template. That being said, how do you write an invoice - and how can you make sure that the payments are as clear as possible.
Even if you have been catering to customers for a while, you may wonder if the current receipts have all the necessary information. Here is a quick guide to ensure your invoicing game is top-notch.
What Is a Cash Invoice?
A cash invoice is a document that includes transactions between sellers and buyers. It is similar to the billing invoice template you send to your customers, with just one slight difference: the payment method.
While regular invoices can be paid with credit (i.e., debit or a credit card), a cash invoice is paid with (you guessed) cash. It serves as proof that a transaction happened, allowing you to acquire potential warranties, refunds, and replacements.
Why Use Cash Receipts?
There are several reasons why you may want to use cash receipts, including:
They Serve as Proof of Ownership
Cash receipts prove that one of your items went into the possession of your customers. They are proof that your client paid, and that the goods are now theirs.
They Help with Exchange and Returns
Sometimes, a client may have made a payment, only to find out that the product was not good for them. Whether they wished for a return or an exchange of products, the cash receipt will prove that the product was indeed purchased from you.
Cash receipt templates can also be used to keep track of the cash flow. They can complete your accounting records and show that the transactions between you and your customers did happen.
They Help You Avoid Audits
Audits often happen because of a lack of supporting documents. If you cannot prove a purchase or a sale, there is a chance that you will be audited. Cash receipts protect your business from audits so that you may run things smoothly.
Why Use a Cash Receipt Template?
When trying to run a business, much of your time should be spent catering to your customers. You should not have to waste time writing templates from scratch. A cash receipt template will take care of the bulk of the problem, ensuring you have at least a professional start.
There are many platforms and free tools out there that can provide a receipt template - one of them is Bonsai. Plus, there is no limit to the templates you can receive. You may get more templates each time your business changes.
What Should Be Written In a Cash Invoice Template?
Cash receipts shouldn't be too complicated, but they must be informative. Here is the information that should always be on the invoice:
- The date when you received the payment from the customer
- The amount of money that they had to pay
- Who made the purchase
- What the receipt was for
- Who was the recipient of the transaction
- The total payment, taxes, discounts, and remaining payment
All information regarding the cash to be paid should be on the receipt. Whether the amount was paid or not beforehand, all the important information should be there.
When Should You Send a Cash Invoice?
Cash receipts should be sent immediately after a transaction - no matter how the customer pays.
You may print and offer the receipt after providing your services to the client, or you may have it delivered after the purchase. Platforms such as Bonsai can also be used to send multiple PDF invoices, making them easier to track.
How to Create a Cash Invoice Template
When you are creating a cash receipt, you should follow the steps below.
Make It Look Professional
The first thing you need to do is ensure that the invoice looks good. You may decide to write it yourself in Excel or a Google document, or you may do so by ordering a pre-made template.
Mark the Invoice
Your invoice should be clearly marked so that your clients know what they are receiving. The word "invoice" should be there, and so should the unique identification number. This will prevent you from issuing duplicate cash receipts accidentally.
Add Business and Customer Information
Add the name of your company, as well as other relevant information on the cash receipt templates. This can include the business logo, your contact details, as well as address. Make sure that the customer information is also there, where the invoice templates ask for it.
Describe the Goods Sold
The details shouldn't be too lengthy, but your client must know exactly what they are paying for. Plus, by accurately naming and describing the goods, you also avoid queries - which eventually lead to a delay in the payment.
Add the Dates
Dates are very important on any receipt form. You need to write down the dates at which you provided the goods and when you created the invoice. This should be at the top of the cash receipt template.
Set Up Payment and Terms
Add the money that they owe you, as well as any potential discounts. Payment terms should also be discussed before they pay, but they should also appear on the cash receipt.
The Bottom Line
Cash receipts are a necessity for every business owner, standing as proof of the transactions and helping you keep track of your funds. Whether you print them immediately or email them later, you should always ensure they are as informationally accurate as possible.
To do that, you should use a receipt template. It will save you lots of time and effort, as you will already have the basis for the transaction. You just need to fill it in with information related to your products or services.