LTD Company giving receipts

MartialArtMan

I have just formed a ltd company and was told I need to keep receipts of what I have sold. Does this have to be an exact duplicate i.e via a duplicate book or can it just be a duplicate print out i.e print out two copies, one for the customer and one for my records?

Do I have to give the customer a receipt? What information must be included on the receipt?

Horace

You need to keep receipts for accounting purposes.

So if you buy something - you keep a copy of the order, delivery note (if there is one) and a copy of the receipt. So if you buy something for the business - get a receipt.

If you sell something you give a receipt when the item/service has been paid for. You can either use a duplicate book or you can print out a receipt and you keep a copy for yourself for your records and give a copy to your customer.

As you are an LTD you would need to put your company reg number on the receipt and say what you have sold to the customer eg.

500 left handed widgets at £x = total £x

Of course if you are VAT registered then you would need to say 500 widgets @£x = £xx plus VAT at 20% (then you list the VAT separately) and then the grand total of £xx (which is £x plus the VAT element added together).

paddyrg

What Horace says. In short, make sure you have a piece of paper to back up every transaction. Instead of receipts, maybe you will produce formal invoices (demands for payment) with your company details (name, address, reg number, vat number) and vat breakout, then there is no real need to receipt as well as invoice, but it's more semantics than anything and there is a big overlap. Have paperwork for each transaction, and you won't go too far wrong.

MartialArtMan

I've created a receipt. Could someone please take a look at it?

LittleVoice

Are you selling to companies or to private individuals? Companies (other businesses) will want invoices - and they pay on invoice. They don't normally need receipts. Their bank statements can be used to show they have paid you.

Private individuals may like to have receipts - especially if they have paid cash.

As a Limited company, you will need invoices from your suppliers. Your suppliers are unlikely to provide you with a receipt - unless you have paid in cash or unless you ask them to receipt the invoice.

Are you VAT registered?