The difference between the two lies in when they’re issued and how they’re used in your accounting.Ī receipt is typically the record of a completed sale. Invoices and sales receipts are similar - they both record a sale and contain much of the same information. What’s the Difference Between an Invoice and a Sales Receipt? They help them prove deductible expenses, track business costs, and record taxes paid. In the case of an audit, this paper trail helps you prove your sales and tax numbers.ĭetailed receipts are also useful for your customers. If your company issues CRA-compliant receipts for every transaction, you automatically create a paper trail. This information helps you file and pay taxes accurately. As a business, you’re required to record your sales and the tax you charge customers. This information helps you make better business decisions, from daily purchases to long-term expansion.Įxternally, receipts are an important part of the CRA’s financial record-keeping requirements. Internally, the receipts help you track your sales and the amount of income you take in - they help you calculate everything from cash flow to profit and loss statements. ![]() It’s crucial that your receipts be accurate, both for internal and external uses.
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