To write a receipt for work done, put your business name and contact details at the top, the client’s name below that, a unique receipt number, the date of service and the date of payment, a specific description of the work, the amount paid, and how the client paid. Give the client a copy and keep one for yourself. That document confirms the job is done and the debt is settled, which is what separates a receipt from an invoice.
What to Put on the Receipt
The IRS expects business owners to keep supporting documents showing the amounts and sources of all income, including receipt books and deposit records.1Internal Revenue Service. What Kind of Records Should I Keep A single well-built receipt serves both sides of that record. Build yours around these fields:
- Your business name and contact information. Full legal name, mailing address, phone, and email. If you operate under a DBA or trade name, show that alongside the legal name. If you’ve formed an LLC or S-corp, the entity name on the receipt should match what’s on your W-9.
- The client’s name or business name and address.
- A unique receipt number. Sequential numbering ties the receipt to your bookkeeping and lets you pull a specific payment out of your ledger later.
- Date of service and date of payment. These are often different, and both matter: one for income records, the other for cash-flow tracking.
- A specific description of the work. “Consulting services” tells no one anything. “Kitchen remodel: demolished existing cabinets, installed custom maple cabinetry, 40 hours at $85/hour” gives both parties a clear record of what was delivered.
- The amount paid, shown prominently.
- Payment method. Cash, check (with the check number), credit card, bank transfer, or digital platform. This helps you reconcile bank statements and leaves a trail if anything is disputed.
When the job involved both labor and materials, break them out on separate lines. A landscaper who charges $600 for labor and $200 for sod should list each so the client can see exactly what they paid for. It also matters for sales tax, because many states tax materials differently than labor.
Detail helps the client, too. Under IRS rules, documentary evidence like receipts is generally required to back up any business expense of $75 or more, and for all lodging expenses regardless of amount.2Internal Revenue Service. Publication 463 – Travel, Gift, and Car Expenses A plumber who writes a $200 receipt for a landlord is creating a document that goes straight into the landlord’s tax file.
Adding a Sales Tax Line
Whether to charge sales tax depends on your state and what service you provide. Most states apply sales tax to fewer than half of the service categories they could tax. A few tax services broadly; most either exempt services or tax only a narrow list like repair, cleaning, or event admission.
If your service is taxable, list the subtotal on one line, the tax amount on a separate line, and the combined total below both. IRS Publication 583 shows this layout in its daily receipts examples, separating net sales from sales tax.3Internal Revenue Service. Publication 583 (12/2024), Starting a Business and Keeping Records State rates currently run from 2.9% to 7.25%, with local taxes stacking on top. If your service isn’t taxable, skip the tax line entirely. Don’t guess here. Check your state’s department of revenue or ask your accountant, because collecting tax you shouldn’t is nearly as problematic as not collecting tax you should.
Credit Card Numbers: What You Can Print
If a client pays by credit or debit card and you produce an electronic receipt, federal law limits what card details you may print. Under the Fair and Accurate Credit Transactions Act, you may not print more than the last five digits of the card number, and you may not print the expiration date at all.4Office of the Law Revision Counsel. 15 US Code 1681c – Requirements Relating to Information Contained in Consumer Reports This covers any receipt produced by a cash register, payment terminal, or software that electronically prints the document. It does not apply to handwritten receipts or manual card imprints.
Modern payment processors truncate automatically. If you’re building receipts in a spreadsheet or word processor and typing card details by hand, know the rule. The safest practice is to note the method only (“Visa ending in 4821”) and leave the card number off entirely.
Paper or Electronic
A digital receipt carries the same legal weight as a paper one. The Electronic Signatures in Global and National Commerce Act establishes that a record cannot be denied legal effect solely because it’s in electronic form.5Office of the Law Revision Counsel. Title 15, Chapter 96 – Electronic Signatures in Global and National Commerce A PDF emailed to your client is as valid as a handwritten carbon copy, provided it accurately reflects the transaction.
One qualifier: if a law requires you to give a consumer a document in writing, you can satisfy that obligation electronically only when the consumer has affirmatively consented to receive electronic records.5Office of the Law Revision Counsel. Title 15, Chapter 96 – Electronic Signatures in Global and National Commerce In practice, confirm the client is fine with email before skipping the paper copy.
Getting the Receipt to the Client
Send it as soon as payment clears. For digital delivery, attach a PDF to an email or upload through your accounting portal. PDFs preserve the layout and can’t be accidentally altered the way an editable file can. For in-person transactions, hand over the signed copy on the spot; a receipt book leaves the carbon duplicate with you, and if you printed from software, running two copies takes a moment.
Match the delivery to what the client wants when you can. A property manager probably wants a PDF to file electronically. A homeowner paying cash for a fence repair may want paper. Either way, get the receipt into the client’s hands while the job is still fresh.
How Long to Keep Your Copy
Keep records that support your income and deductions until the statute of limitations on the return expires. For most situations that’s three years from the date you filed. If you claim a loss from worthless securities or a bad debt deduction, the period runs seven years.6Internal Revenue Service. How Long Should I Keep Records If you leave off income exceeding 25% of the gross income shown on your return, the IRS has six years to assess additional tax.3Internal Revenue Service. Publication 583 (12/2024), Starting a Business and Keeping Records
Seven years covers the widest window and is a safe default, both for receipts you issue clients and receipts you receive from vendors. Thermal paper fades fast, so scan anything printed on it. Carbon-copy duplicates in a receipt book hold up longer.
Refund and Cancellation Language
If you have a no-refund policy or a limited refund window, putting it on the receipt reinforces that the client knew the terms at the time of payment. Many states require businesses to display a refund policy, and a brief line on the receipt is one way to meet that. “All service fees are non-refundable” or “Refund requests must be submitted within 14 days of service completion” is enough.
One boundary to flag. For work performed at a client’s home or at a location other than your normal place of business, the FTC’s Cooling-Off Rule may apply to sales of $25 or more, giving the consumer three business days to cancel for a full refund. When the rule applies, you have to inform the buyer of the cancellation right at the time of sale and provide cancellation forms. It’s a narrow rule aimed at door-to-door and off-site transactions, not all service work, but it catches enough in-home tradespeople off guard that it’s worth checking whether your jobs fall inside it.