Receipts are things we get every time we buy something, but what are they really and why do we even need them? Learn specifically what you need to know about reciepts and more in this training from Clay Clark, the "Entrepreneur of the Year" Clay Clark.
Featured Coaching Excerpt - Notes & Transcript, Part 1
Receipt: A written record of transaction. A buyer receives a receipt to show that he paid for an item. The seller keeps a copy of the receipt to show she received payment for the item. Receipts are sometimes called sales slips.
Lesson Nugget: You can reduce the amount of money you owe in taxes through "business write-offs." To do so, you will need proof of your purchases, which is why you need to keep your receipts.
Lesson Nugget: If you don't provide receipts for your sales, your business will look non-professional (AKA stupid) because your buyer will not be able to use their purchase for a write-off.
What you need on a receipt: 1. Date of purchase
What you need on a receipt: 2. Amount before taxes
What you need on a receipt: 5. Phone number
What you need on a receipt: 6. Address
What you need on a receipt: 3. Taxable amount added
What you need on a receipt: 4. Total amount
What you need on a receipt: 8. Coupon or special
What you need on a receipt: 7. Website
What you need on a receipt: 1. Date of purchase 2. Amount before taxes 3. Taxable amount added 4. Total amount 5. Phone number 6. Address 7. Website 8. Coupon or special
understand msn money, time management
-My name is Caleb Taylor, and I'm a host here at Thrive15.com, the online platform that provides training on time management, sales, marketing, branding, and more. Today, we're sitting down with ClayClark, our pale and fearless leader. And he will be defining for us the receipt, and why you need to understand it better. Here at Thrive15.com, we believe that knowledge without application is completely meaningless. So always be asking yourself, how can I apply this principle to my business. Because if you don't, today's episode could be more meaningless than citing a Wikipedia article for a research paper.
Clay, I'm so glad that you're this happy to be discussing the reci-pet. Is it reci-pet? Re-cipet? The receipt, defined. Just grab it. Under control, man. This is fun. This is how fun accounting can be, people. Right now we're going to define for you the receipt. And you might think, I understand a receipt. I get it each time I--
-I'm glad you can pronounce it.
-I get a receipt every time I go to the video store, Blockbuster. Well, no, we're going to actually make sure--
-Do you still go to-- [LAUGHTER] you still go to Blockbuster? What?
-I don't appreciate the discrimination. Just pull it together, man. The receipt is important, and here's the definition of the receipt. Again, we're doing this in the five minute verse for you, OK? This is fun. Accounting can be fun. This minute burst is the definition of receipt. It says, "a receipt is a written record of a transaction. A buyer receives a receipt to show that he or she paid for an item. The seller keeps a copy of that receipt to show that he or she received payment for the item. Receipts are sometimes called sales slips."
Clay, in all seriousness, why are we even talking about this right now? Why is this important?
-One, I enjoy it so much. But the second reason is that, in the world, if you're my customer-- let's pretend that you're one of my first DJ customers, and I provided services for your corporate party. So you own a company and now I'm providing entertainment services for your company. After the party, you would say, hey, I'd like a receipt. Well, why? Because you're going to pay taxes at the end of the year and you want to write off, you want to say I want to pay less taxes this year, and I'm going to write off-- I'm going to deduct the amount of money I spend on my holiday party, on my entertainment, from my taxes. So you can reduce the amount of taxes you owe by documenting where you spent your money as it relates to your company.
So if you asked for receipt and I don't have a receipt, one, it makes me look stupid as a service provider. Two, it makes it impossible for you do your taxes. That's what happens. So what happened is, both of those happened in my life.
-So you were not providing receipts?
-I didn't provide receipts for two years.
-I didn't do it.
-Were people asking for receipts?
-And I'm obstinate. I'm the kind of persons who says, I'm going to start a business. And you might be, too. I'm like, I'm going to start a business. You can't stop me. I'm going to start a business. I'm going to go from poor to poor no more. I want to start a business. They say, can you send me a receipt. No.
CALEB TAYLOR: It's just not an option.
-I don't have them. Stupid.
-So action steps for me. If I don't do receipts, how do I go about making a receipt?
-Well, the big thing is the receipt. We have to go over what should be on the receipt.
-What should be on it?
-On the receipt, you want to have the date of purchase, like whenever you bought. Two, you want to have the amount. Just the actual amount before taxes. Three, you want to have the actual taxable amount added. Four, you want to have the actual total when you add the taxes in the subtotal. Five, you want to have your phone number. Six, you want to have your address. Seven, you'd like to have your website. And eight, if you're lucky, you want to have a coupon or some kind of special.
So what I would recommend you do is go to Walgreens right now. If you're watching this, you're probably within 10 feet of a Walgreens or a CVS. They're on every corner. You might be under or over a Walgreens right now. And the thing is, you need to go to Walgreens and just buy some gum and say, can I have a receipt? Take that receipt. And you might go, that's stupid. No. This is what I really have done. I've literally done this for companies.
I take a picture of their receipt with my phone and I say, this will be the receipt of the future. And you think it's stupid. Yeah, when you get married and you find yourself clipping coupons or you find yourself trying to save some money, you'll go let's go to Walgreens because I have this coupon. And you'll go back and become a repeat customer because there's a coupon on that receipt.
-Good. So we had eight specific action items for you to implement right now that will help you create this receipt. It doesn't matter. You haven't been doing it. That's fine. You gotta start today.
-We'll put these up on the screen so you can look at these eight. You can kind of marinate on it. Kind of rotisserie on it. Let's just do it right now. Everybody pause.
-Look at those eight. Those eight points. You want to get those eight points. You want to just marinate. Let that kind of simmer.
-That's good. That's enough. That's enough. Not too much. Well, I appreciate that. I mean, I think that this is very helpful. You made it fun, honestly. And then I think you've explained to me why I need to start providing a receipt. And that's the important thing.
-I'm glad to that Biola College where you went to school has taught you how to pronounce the word
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