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Invoice and Receipt for selling fish to a fish store


Potaqua
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Are you taking cash, credit card, or ACH transfers? Do you have a business license for your business and remit taxes?

If those answers are yes, then I’d definitely be bringing/sending an invoice and tracking those payments to your business in exchange for goods. 

Edited by AllFishNoBrakes
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@AllFishNoBrakes @Andy's Fish Den

I'm taking both cash or card. I'm dedicated to one local fish store. The store usually pays me cash, and I normally just give them receipt. 

The other day we talk about Invoices. Invoices and receipts I guess are similar in someways? But a Invoices you sent first and receipts is given at the end of the transaction. Overall, the store owner said not to worry about it because I'm still very new and receipt is just fine. I just wanted dive deeper but I was curious.

I use Square to track my transactions, im under personal use then business.I don't make enough to need a business license. I'm more of a hobbyist than a business.

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You should ask the store you're selling to if they are paying you "under the table". I get the sense they're not, because invoices and receipts are part of the conversation. 

If this is the case, what could happen (unlikely but possible) is an audit or review of the fish store's books/taxes/returns/etc by state or federal tax authority could flag that they (the store) are paying you, and if they then check your records (if they have them) they might notice or find that you haven't paid income tax on that amount that you've received. 

Basically, income is income, and the govt expects you to pay tax on your income. How do they know you received it? From the fish store's records. If they don't look for it or notice it, they won't know you received payment. 

You also haven't said what your personal income situation is. If your income from all sources (including any job you have) is below a certain threshold (usually relatively low), you're exempt from paying taxes. So it wouldn't matter. But let's say you make 30K per year in your regular job, and $500 per year selling fish (above the table). At the end of the year, you owe taxes on your gross income which would be $30,500. 

In my situation, I don't need a business license to breed and sell fish, but certain buyers (stores) won't pay me cash or cheque without one. That's just their business decision. So for them to pay me, they require an invoice with a business number (license). If I didn't provide a business number (and it can be any business, doesn't have to be a fish selling one), they couldn't/wouldn't process my invoice through their system, and couldn't cut me a cheque. That reflects their business practices not my preferences, but if I want to get paid in that way I have to conform with their requirements. The same store, incidentally, is also quite happy to issue a store credit note without an invoice or business number, however I don't always have need of $500 worth of the goods they carry (if it's been a good month 🙂), and sometimes waiting 40 days for a cheque, which I can deposit and spend anywhere, is better than credit with them. 

I sell to another store that pays cash, under the table. Meaning he's not reporting it as a cost/purchase on his books. But I usually lose a few cents on the dollar for that convenience. 

Regarding invoices/receipts... An invoice is from a supplier to a buyer, and says "you owe this much for this/these items". A receipt is proof of a payment. So you make an invoice for the fish store, and give it to them with your merchandise or services. When they pay you, you give them a receipt (if you are able) so they can prove the invoice was paid. Your invoice without a receipt is an amount owed. Your invoice with a receipt is an amount paid. 

You can also write on the physical invoice that the amount is "paid in full". When you (the receiver of payment) sign that written statement on the original invoice, it functions as a receipt, because it's proof that you, the seller, were paid for the goods specified on the invoice. 

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  • 7 months later...
Posted (edited)
On 10/18/2023 at 4:57 PM, TOtrees said:

You should ask the store you're selling to if they are paying you "under the table". I get the sense they're not, because invoices and receipts are part of the conversation. 

If this is the case, what could happen (unlikely but possible) is an audit or review of the fish store's books/taxes/returns/etc by state or federal tax authority could flag that they (the store) are paying you, and if they then check your records (if they have them) they might notice or find that you haven't paid income tax on that amount that you've received. 

Basically, income is income, and the govt expects you to pay tax on your income. How do they know you received it? From the fish store's records. If they don't look for it or notice it, they won't know you received payment. 

You also haven't said what your personal income situation is. If your income from all sources (including any job you have) is below a certain threshold (usually relatively low), you're exempt from paying taxes. So it wouldn't matter. But let's say you make 30K per year in your regular job, and $500 per year selling fish (above the table). At the end of the year, you owe taxes on your gross income which would be $30,500. 

In my situation, I don't need a business license to breed and sell fish, but certain buyers (stores) won't pay me cash or cheque without one. That's just their business decision. So for them to pay me, they require an invoice with a business number (license). If I didn't provide a business number (and it can be any business, doesn't have to be a fish selling one), they couldn't/wouldn't process my invoice through their system, and couldn't cut me a cheque. If you are interested in earning extra money, there is a second way. I read on avantgarde casino no deposit bonus some reviews. And there you can get the best bonus codes for top casino slots. That reflects their business practices not my preferences, but if I want to get paid in that way I have to conform with their requirements. The same store, incidentally, is also quite happy to issue a store credit note without an invoice or business number, however I don't always have need of $500 worth of the goods they carry (if it's been a good month 🙂), and sometimes waiting 40 days for a cheque, which I can deposit and spend anywhere, is better than credit with them. 

I sell to another store that pays cash, under the table. Meaning he's not reporting it as a cost/purchase on his books. But I usually lose a few cents on the dollar for that convenience. 

Regarding invoices/receipts... An invoice is from a supplier to a buyer, and says "you owe this much for this/these items". A receipt is proof of a payment. So you make an invoice for the fish store, and give it to them with your merchandise or services. When they pay you, you give them a receipt (if you are able) so they can prove the invoice was paid. Your invoice without a receipt is an amount owed. Your invoice with a receipt is an amount paid. 

You can also write on the physical invoice that the amount is "paid in full". When you (the receiver of payment) sign that written statement on the original invoice, it functions as a receipt, because it's proof that you, the seller, were paid for the goods specified on the invoice. 

So, there’s no minimum income level, and they can ask in any case?
Yes, sorry for the misunderstanding. I mean the government can require a report on any amount?

Edited by Mikedufae
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Posted (edited)
On 5/22/2024 at 3:28 PM, Mikedufae said:

So, there’s no minimum income level, and they can ask in any case?

Not sure what you mean, sorry. Do you mean "they" as in the govt? As in, the govt can ask about your income in any situation? If that's what you're asking, I'd say yes.

But I am neither accountant nor lawyer nor legislator. And don't know about your locale/jurisdiction, just mine. 

Edited by TOtrees
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On 10/18/2023 at 4:26 AM, Potaqua said:

@AllFishNoBrakes @Andy's Fish Den

I'm taking both cash or card. I'm dedicated to one local fish store. The store usually pays me cash, and I normally just give them receipt. 

The other day we talk about Invoices. Invoices and receipts I guess are similar in someways? But a Invoices you sent first and receipts is given at the end of the transaction. Overall, the store owner said not to worry about it because I'm still very new and receipt is just fine. I just wanted dive deeper but I was curious.

I use Square to track my transactions, im under personal use then business.I don't make enough to need a business license. I'm more of a hobbyist than a business.

Bookkeeper here - An Invoice is asking for payment and records the order items and sales tax plus any discounts and total.  A Sales Receipt records payment having been made and lists items, sales tax, discounts and total.  You use an Invoice when someone owes you money.  You use a Sales Receipt when you have already been paid and need to document the transaction.

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