Sending customer a receipt for a cheque

[Jimwatson]

Hi can someone tell me the rationale for sending a customer an acknowledgment and/or receipt for payment by cheque. I done some work today and customer has paid me by cheque; do you usually wait until its cleared before you send a receipt ? If so, do you send an acknowledgement that you have received the cheque first (before it has cleared) ?

Anyone have any simple examples please ! Thanks

J

 

[Red Wood]

You would usually send a statement of account at the end of the month stating what payments have been received.
However, not always necessary if it is a one off payment.

 

[Jimwatson]

Thanks for the reply, all my customers are one offs (im a plasterer and just gone self employed). Just wanted to know what most people do when receiving a cheque, do you only send a receipt when its cleared ??

 

[Red Wood]

We send statements at the end of each month so our customers (regular and all have credit accounts) know what they have paid and what is still due. As your customers are one offs I wouldn’t worry to much about sending a receipt on receiving the cheque, just issue the Invoice normally before payment has been made and save yourself the work of creating cheque receipts

 

[Jimwatson]

Okay thanks, most customers want receipts for their payments !

 

[Newchodge]

If your customer expects a receipt straight away the receipt should state

'Payment received by cheque on x date' (date cheque received). If it doesn't clear then you would send a letter - further to your cheque payment of (date), your cheque dated x, received on y, has been rejected by the bank, please provide alternative means of payment.

I personally would only give a receipt for a cash payment. the cheque itself is proof of payment.

 

[Jimwatson]

Okay thanks, I will look into it.