What is a Cash Memo?

Financial trail documentation is required for all accounting transactions. We use cash memos to allow buyers and sellers to document cash transactions. It serves as the company's official record of cash sales. Since the buyer keeps the original and the seller needs a duplicate copy, we need to create the document with a duplicate. It helps sellers track their cash sales, reconcile taxes, analyze inventory, and manage their cash. As a cash equivalent, it can be compared to a tax invoice.

What is a Tax Invoice?

Invoices for taxable supplies of goods or services are called tax invoices. It facilitates the seller's ability to get paid on time by requiring payment from the buyer.

A Tax Invoice includes information such as:

• Name and address of the buyer
• Name and address of the seller
• Invoice's issue date and invoice number
• Description and quantity of goods or services
• The unit price and the total amount due
• Discount (if any)
• Signature of the company's authorized person.

What is the difference between Cash Memo and Tax Invoice?

Invoices and cash memos are business vouchers that are issued separately. According to the seller, an invoice is a sales invoice, while the buyer sees it as a purchase invoice. By issuing invoices, the seller can identify which bills have been paid and which are still due. Alternatively, the supplier keeps a copy of the cash memo as proof that the buyer paid the amount.

A cash memo is a non-negotiable commercial document demonstrating the purchase was a cash transaction.

A Tax Invoice showing the buyer's debt to the seller is a non-negotiable document. The seller provides it to the customer so that he can request payment for goods or services. It keeps track of daily sales transactions.