Receipts don’t just provide proof of payment to customers.
They also show the services you provided, what you charged, and how much tax you collected. This helps you organize your business finances, makes tax time easier, and offers a paper trail in case of a dispute.
If you don’t use them already, it’s time to learn how to write a receipt to keep your books clean and customers happy.
Stay organized with payment receipts:
What is a home service receipt?
If you’ve ever made a purchase, you know what a receipt is. But a receipt for the services you provide is slightly different from the one a waiter hands you after lunch.
Unlike retail receipts, a home service receipt can be:
- Issued before, during, or after a job
- Used to record a deposit or partial payment
- Applied to recurring services, like weekly lawn mowing
- Customized for each job and client, including services, materials, and labor
- Linked to specific invoices, like when a customer pays for a large project in stages
- Created and sent manually or digitally
They may also be required for insurance or warranty purposes, especially if your services are related to a home repair or a new system, like an HVAC unit or furnace.
This flexibility lets you handle multiple scenarios while keeping your records clear.
For example, a landscaper might:
- Request a 50% deposit on a large project, like an outdoor living space
- Charge for a single load of topsoil upon delivery
- Bill monthly for ongoing lawn and garden maintenance
In each of these scenarios, a receipt would be provided once a client made a payment to confirm it was received, track accounts receivable, and provide a record for both you and your customer.
What’s the difference between a sales receipt and an invoice?
An invoice is a bill you send to a client before they pay you. It tells them how much they owe, when their payment is due, and which methods you accept.
A sales receipt is a physical or digital record you provide to a customer after they make a payment. It confirms how the payment was made, how much it was for, and when it was received.
READ MORE: Invoice vs receipt
What information to include on a receipt
Since home service receipts typically cover more information than a retail receipt, they need to include additional elements, such as:
- Client details: The customer’s name, address, service address (if different), phone number, and email
- Business info: Your business name, address, contact details, and website
- Receipt number: A unique identifier that you can link to an outstanding invoice
- Date: Either the date the payment was received or the receipt was issued
- Description of services: Such as services with prices, materials, and labor
- Payment specifics: Like the total amount paid, payment method, and whether it’s a deposit on a project or a partial payment toward a short-paid invoice
- Tax details: The tax rate, amount collected, and tax identification number (if applicable)
- Balance due: How much the client owes (if anything) you after the payment is applied
- Terms and notes (optional): Such as your warranty or guarantee information, refund policy, and a thank you note
That way, your customer knows exactly what they paid for, you have a record of your income, and you both have a copy you can refer back to.
When to send a receipt
When you send a receipt to a client depends on the situation.
For example, you can send a receipt when a customer:
- Pays their invoice in full
- Makes a deposit on a larger project
- Is charged for recurring services using pre-authorized credit card payments
- Makes a partial payment toward an amount due
- Uses an online payment method, like an ACH payment or a credit card payment
- Pays you in person with cash or a card
- Sends you a check in the mail
- Receives a refund for a service or materials
For example, a pressure washing company might send a receipt to a client online after cleaning a driveway, while a plumber could provide one on-site after being paid in cash for an emergency repair.
READ MORE: How to collect payments from customers
How to write a receipt
To make a payment receipt, you have two options. You can make your receipts by hand using a receipt book, or you can use a tool like Jobber’s free receipt template to make them digitally.
Handwriting receipts
The easiest way to make receipts by hand is using a receipt book, which you can pick up for between $5-$15 at most office supply stores.
Most booklets contain carbon paper so you and your customer can both have a copy of the transaction for your records. They also include headings for the required information to make filling out a receipt easier.
For example, receipt books usually include:
- Unique receipt numbers on each paper
- A field for the date
- A place for business and customer information
- A grid to list your services and each of their prices
- A space to record the chosen payment method
- A line for taxes
- A place for additional charges or discounts
- The total
- A line to show who received the payment
- A blank spot for a signature
Handwritten receipts work best if you typically get paid at job sites or work in areas with no wi-fi. However, they’re easier to misplace and damage than their digital counterparts.
To fill out a receipt in a receipt book:
1. Have a pen handy
You should always write your receipts in pen. It works better when using carbon paper and prevents any changes from being made after the fact.
2. Gather job information
Use your initial invoice or quote to confirm which services were provided, how much to charge for them, and customer details.
3. List items and costs
Add in your services, materials, and labor as well as the costs for each one on separate lines.
4. Calculate the total
Don’t forget to factor in any deposits, previous payments, discounts, or additional fees like taxes.
5. Add payment details
Include the payment method (such as cash, credit, or check), amount paid, and date.
6. Give the customer a copy
Once the transaction is complete, give the top copy to the customer and keep the carbon copy for yourself.
Pro Tip: Since paper receipts are easy to lose, consider taking a photo of your receipt as well. Save it in a digital file to make it easier to find come tax time.
Digital receipts
Digital receipts document payment transactions, provide accurate financial records, and can be used remotely or in person.
Similar to receipt books, digital receipt tools include fields for:
- Business and customer information
- A receipt number
- Products, services, and their prices
- Discounts and taxes
- The payment amount, method, and date
But unlike paper receipts, digital receipt tools also:
- Let you upload a logo to boost branding
- Include a place for you to add notes, like the associated invoice number or a personalized thank you
They’re a safer option than paper receipts because they’re easier to fill in, harder to lose, and they can easily be linked to specific invoices and customers. But to use them, you’ll need access to the internet and a computer, tablet, or smartphone.
To make a digital receipt:
1. Choose a tool
There are lots of free options to choose from, like Jobber’s receipt template, which is tailored to home service businesses.
No matter which tool you choose, make sure it contains the right fields for your needs. Otherwise, you’ll waste time filling out unnecessary information.
2. Fill out your information
Work through the fields by adding in customer, business, service, and payment details.
You can fill out Jobber’s receipt template from a phone, tablet, or computer, making it easy whether you’re in the office or on the job.
3. Review your total
Digital tools will automatically calculate your total as you add in prices for line items, so you don’t have to worry about doing the math in your head.
All you need to do is be sure to include the correct tax rate, as well as any discounts or fees.
4. Personalize and send
Add a thank you note, payment terms, or any other relevant info to your receipt, then send it to the customer and attach it to their file for future reference.
With Jobber’s free receipt template, creating a branded, professional receipt only takes a few minutes. Once it’s ready, you can email, text, or print it, making it easy to document the transaction no matter when or where you get paid.
Why are receipts important?
Payment receipts provide many benefits to your business and clients. Using them helps you to:
1. Streamline accounting
Receipts don’t only confirm you received a payment, they also track income.
You can use them to see how much money came into your business, giving you insight into your profit margin, cash flow, and revenue for more accurate financial forecasts.
They’re also a good way to:
- See when, how, and what a customer paid
- Track which invoices have been paid in part or in full
- Reconcile deposits in your business bank account
- Maintain accurate books for taxes, reporting, and audits
2. Resolve disputes
Customer disputes often involve money, and when they do, the more records you have to rely on, the better.
Sales receipts show you how a payment was made, when it was received, and the amount it was for. That gives you clear documentation if a customer ever claims to have paid an invoice in full, but your records show otherwise.
3. Look professional
Providing receipts to customers positions you as a professional and legitimate business. And the more you do to provide customers with a high-quality experience, the more trust and confidence you’ll build with them.
4. Stay organized
Receipts help you stay on the ball when it comes to tracking and documenting payments.
When your receipts are in order, it gives you more time to focus on the job instead of digging through piles of paperwork. And it makes your life a lot easier if there’s ever a dispute or when you need to do your taxes.
With payment processing software like Jobber, you can save even more time with less effort. As soon as a customer’s payment is received, Jobber automatically creates and sends a receipt on your behalf.
These receipts are also linked to your customer’s file and tied to specific invoices, keeping you up-to-date on what’s been paid and what hasn’t.
And when it comes time to generate cash flow reports or revisit job costing, you can use the payment data you have in Jobber, like receipts, to give you an overview of your business’s financial health.