The ABC’s of Bills and Receipts

A look at that vital record that helps you get paid

A bill and a receipt are not the same thing. A bill is an acknowledgment that a specified sum of money is due for goods or services. A receipt is a written or printed acknowledgment that a specified article or sum of money has been received as an exchange for goods or services. A bill marked as paid becomes a receipt.

Printed Vs. Handwritten?

Handwritten receipts are perfectly legal and acceptable. Electronic or printed receipts are becoming more popular as farriers take to the field with portable computers and printers. Electronic receipts do look more professional.

Receipt Requirements

Receipts may include any messages from the farrier, such as warranty, return details, advertisements, billing fees, returned check policy, etc. A physical or electronic copy of the receipt must be kept on file and is also an excellent tool for helping you keep more accurate overall business records.

The Internal Revenue Service has warned that the frequency of audits on small businesses will most likely increase due to the current economic situation. Maintaining good records, documentation and receipts can assist you when or if an audit happens to you.

No matter what type of receipt you decide to use, pre-printed receipt forms, computerized receipts or handwritten receipts, the following items should be on each receipt:

  • Name of your business or your name (required by federal law).
  • Date the goods were sold or service provided (required by federal law)
  • Description of goods sold or service provided (required by federal law)
  • Itemization of goods…
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Esco buff 1215

Esco Buff

Esco Buff, CF, APF, is a farrier in Web­ster, N.Y., and holds a PhD in bus­iness administration. He is a member of the Interna­tional Horseshoeing Hall of Fame.

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