Cash receipts are written documents that are necessary to maintain sound record of cash sales. Cash receipts are important for all types of business organizations in order to have proper record of their monthly cash expenses. Cash receipts are designed in different ways according to their use and nature of the business. Usually cash receipts contain nature of items purchased, quantity of each item, date of transaction, total value of cash sales and total amount of sales tax. These receipts can be hand written or computer generated according to the nature and size of the business because some small scale business organizations cannot afford software programs to design and maintain cash receipts. Cash receipts are equally important for a businessman and a common person because in the absence of cash receipts you cannot enjoy their all possible benefits.
Here is preview of this Cash Receipt Template created using MS Excel 2007,
Benefits of Cash Receipts for a Businessman
Cash receipts are really important for a businessman because these help them to maintain their financial accounts. Following are some benefits that a businessman can enjoy with the use of cash receipts:
- After a selecting transaction, each business receives a cash receipt and it is necessary in order to document everything in the ledger and accounting books. It helps you to track record of all purchases including materials and equipment. It is necessary to record all purchases in the ledger immediately because it will help you while compiling financial accounts. It will decrease the chances of error of omission in the financial accounts.
- Cash receipts are important for seller also because it is necessary to record all sales in the income head of the business. While running a sales business, you have to keep copies of all cash receipts in different forms such as cash register logs, database copies, carbon copies of handwritten receipts. Cash receipts should be arranged consecutively to manage audit process. Cash receipts help you to record all transactions with dates and proper amount.
- It is necessary for a businessman to file and store the cash receipts in chronological orders. Keep them in the folder and have record in the computer system also. Your filing, storing and recording of cash receipts will entirely based on the total volume of your business. It is necessary to record these receipts in the cash ledger to have accurate estimate of cash flows.
- Try to prepare a complete record for cash receipts in a separate folder because it will help you to compile a perfect cash ledger. You should have record of cash receipts for at least five years.
- It is necessary to keep all cash receipts with proper account details because some cash transactions are managed from petty cash account. It will help you to maintain whole cash flow of your organization.
- Proper record of cash receipts will save you from different future conflicts because sometimes you have to show your cash receipt while audit and maintenance of financial accounts.
Here is download link for this Cash Receipt Template,