Invoice vs Receipt: What's the Difference?
Invoices and receipts are often confused because both are records of a transaction — but they do opposite jobs. In short: an invoice requests payment, and a receipt confirms it. One comes before money changes hands; the other comes after.
Knowing which document to issue, and when, keeps your books straight and your clients clear on where they stand.
What an invoice does
An invoice is a request for payment. You issue it when the work is done or the goods are delivered, and it states what's owed, by when, and how to pay. Until it's paid, an invoice represents money you're owed — accounts receivable, in bookkeeping terms.
Because it's a demand for payment, an invoice carries a due date and a unique invoice number, and in tax-registered businesses it shows the tax charged.
What a receipt does
A receipt is proof that payment was made. You issue it after the client pays, confirming that the amount was received and the invoice is settled. The client keeps it as evidence of the expense; you keep it as a record of income.
A receipt typically references what was paid, the amount, the date of payment, and the method — but it carries no due date, because there's nothing left to pay.
When to use each
Send an invoice when you want to be paid: after delivering work, or on an agreed billing schedule. Issue a receipt once that invoice is paid, if the client needs confirmation — many do, for their own expense records.
For an immediate cash sale, you might skip the invoice entirely and issue only a receipt, since payment and delivery happen at once.
At a glance
Invoice: issued before payment, requests money, has a due date, records accounts receivable. Receipt: issued after payment, confirms money received, has no due date, records a completed transaction.