How important are cash receipts?

Answer 1

Cash receipts are very important, especially in accounting, but also in everyday life. When paying cash for an item (of any magnitude) the receipt is the only proof you have that said purchase or payment was made.

Let's use a personal example of a purchase. Say you go to your local electronic store and purchase a television or other large electronic device and you pay cash for it. The cash receipt is your "proof of purchase". That proof of purchase is needed in order for warranty, returns, etc.

A business is much the same, say you (as a company) pays for an invoice using cash and you are given a cash receipt. Now let's say later in the month the vendor who bills you for the previous purchase makes an error in their books and re-bills you for the purchase, the cash receipt you received upon payment is proof that the bill was paid, without the receipt a long and sometimes not so pleasant battle over whether or not the amount was paid may ensue.

So a cash receipt, especially on purchases that may have warrant, or be questioned in any way, are very important.