Cash Receipt: What to Include, Example and How to Write One

A cash receipt is a written record that confirms a customer paid you in cash. It shows who paid, who received the money, the amount, the date and what it was for, and it is signed or issued by the seller. Giving one protects both sides, because cash leaves no bank record of its own.

What is a cash receipt?

When someone pays by card or bank transfer, the bank keeps a record. Cash is different. Once the notes change hands, the only proof of the payment is what you write down. A cash receipt fills that gap. It gives the customer proof they paid and gives you a record for your books and tax return.

In accounting, "cash receipts" can also mean all money a business receives, including cheques and card payments, recorded in a cash receipts journal. This guide focuses on the everyday meaning: a receipt you hand to someone who paid you in cash.

If you are not sure how a receipt differs from an invoice, read invoice vs receipt. In short, an invoice asks for payment and a receipt confirms payment.

What to include on a cash receipt

A good cash receipt is short but complete. Include:

Field	Why it matters
The word "Receipt" or "Cash Receipt"	Makes clear the document confirms a payment
Receipt number	A unique reference for your records
Date of payment	Shows when the cash was received
Your name or business name and contact details	Shows who received the money
Customer name	Shows who paid
Description of goods or services	Explains what the payment was for
Amount paid in figures and words	Writing it in words makes changes harder
Payment method: cash	Confirms how it was paid
Balance remaining, if any	Useful for part payments
Signature of the person receiving the cash	Confirms the receipt is genuine

If you are registered for VAT in the UK or need to show sales tax in the US, the receipt may need tax details too. See VAT invoice requirements in the UK, and check your state rules in the US.

Cash receipt example

Here is a simple cash receipt you can copy and adapt:

A US version works the same way. For example, "Received from Ana Lopez the sum of $250.00 (two hundred fifty dollars) in cash for moving help on 9 May 2026, balance $0.00."

How to write a cash receipt step by step

1. Count the cash in front of the customer. Agree the amount before you write anything.
2. Give the receipt a number. Use a simple sequence like R 0001, R 0002 so none go missing.
3. Write the date and both names. Who paid and who received the money.
4. Describe what was paid for. Be specific, for example "Deposit for garden fence" rather than just "Work".
5. Write the amount in figures and words. This makes it harder to alter later.
6. Show any balance. If it was a part payment, write what is still owed.
7. Sign it and give the customer a copy. Keep a copy for yourself as well.

For more on writing receipts of all kinds, see our guide on how to write a receipt.

Paper or digital cash receipts?

Both are fine, as long as the details are complete and you keep a copy.

• Paper receipt books with carbon copies are quick on site, but copies can fade or get lost.
• Digital receipts as a PDF are easy to send by email or message, look more professional and are simple to store.

You can make a digital cash receipt with the free InvoiceGeneratorKit generator. Change the document title to Receipt, add your details and the customer, list what was paid for, note "Paid in cash", then mark it as paid so a PAID stamp appears. Download the vector PDF and send it straight away. There is no sign up, and your receipts are saved privately in your browser so you can find them later.

Common uses for cash receipts

• Trades and home services: cleaners, gardeners, window cleaners and handymen paid in cash at the door.
• Rent: landlords who take rent in cash should always give a receipt. See our rent receipt guide.
• Private sales: selling a car, furniture or equipment to another person.
• Tutoring, coaching and lessons: weekly sessions paid in cash.
• Markets and events: stalls where customers ask for proof of purchase.
• Deposits: cash taken to secure a booking or job.

Why cash receipts matter for tax and records

Cash income is still taxable income. In both the US and the UK, you are expected to keep records that support the income you report. Receipts, together with a simple log of cash takings, make that much easier.

How long you should keep records varies. The IRS generally suggests keeping records for at least three years, and longer in some situations. HMRC asks sole traders to keep records for at least five years after the 31 January submission deadline for the tax year, and limited companies usually six years. Rules change, so check with HMRC, the IRS or your accountant.

Good habits for cash records:

• Issue a receipt for every cash payment, however small.
• Keep receipts numbered in order with no gaps.
• Bank cash regularly so your bank statements back up your records.
• Keep a running total of cash received each week or month.

Cash receipt vs invoice: which do you need?

	Invoice	Cash receipt
Purpose	Asks for payment	Confirms payment
When it is sent	Before payment	At or after payment
Shows a due date	Yes	No
Shows payment method	Accepted methods	Cash, as received

If you invoiced the customer first, your receipt can reference the invoice number. If the customer paid on the spot, a receipt on its own is often enough for small sales.

Short message to send with a cash receipt

Final tips

• Never accept cash without giving a receipt.
• Write amounts in words as well as figures.
• Keep a copy of every receipt you issue.
• Use a numbered system so your records are easy to check.

A cash receipt takes a minute to write, but it protects you and your customer and keeps your records tidy at tax time.

Frequently asked questions

What is a cash receipt?

It is a written record that confirms a customer paid in cash. It shows the amount, date, who paid, who received it and what it was for.

Is a handwritten cash receipt valid?

Yes, a handwritten receipt is fine as long as it includes the key details and is signed by the person who received the cash. Keep a copy for your records.

Do I have to give a receipt for cash payments?

Rules vary by country and situation, but giving one is always good practice. It protects both sides and supports your tax records.

Can I make a cash receipt online for free?

Yes. In the free InvoiceGeneratorKit generator you can change the title to Receipt, mark it paid and download a PDF with no sign up.