Invoice vs receipt

An invoice and a receipt are both written records of a transaction, but they’re used at different times and for different purposes.

What is an invoice?

An invoice is a request for payment. You send it before or when payment is due. It tells the client what you provided, how much they owe, and when and how to pay. You issue an invoice so the client knows what to pay and you have a record of what you’re owed.

What is a receipt?

A receipt is proof that payment was received. You (or the seller) give it after the client has paid. It confirms the amount paid, the date, and often the method of payment. Clients may need a receipt for expenses or taxes; you keep copies for your records.

When to use each

• Use an invoice when you’re asking to be paid: after finishing work, delivering goods, or at a billing date (e.g. monthly rent). See how to create an invoice and invoice format.
• Use a receipt when payment has been made and you need to document it. Some businesses send a receipt automatically after payment; others provide one when the client asks.

Can one document be both?

In practice, some documents combine elements: for example, “Pay this amount by [date]” (invoice) with “Received payment on [date]” (receipt) once paid. For clarity and record-keeping, many people keep invoices and receipts as separate steps: send an invoice to get paid, then issue or keep a receipt when payment is received.

Summary

For more on creating and sending invoices, see invoicing basics and how to send an invoice. You can create an invoice with our free tool and download a PDF to send.

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