Invoice vs receipt: what’s the difference?

They look similar, but they do opposite jobs: an invoice requests payment, a receipt confirms it. Here’s when to use each.

The short answer

An invoice is sent before payment — it tells a customer what they owe and when it’s due. A receipt is given after payment — it’s proof the money changed hands. Same transaction, two different moments: the invoice opens it, the receipt closes it.

When to use an invoice

Use an invoice whenever you’ve delivered work or goods and need to be paid. It includes a due date, payment terms, and a balance owing. If you do business on credit (deliver now, get paid later), the invoice is your formal request and your record of the debt. Make one with the free invoice generator.

When to use a receipt

Use a receipt once payment has been made — for example, a customer pays on the spot, or settles an invoice and wants confirmation for their bookkeeping or expense claim. A receipt shows the amount paid and the date, with the balance at zero. You can make one with the receipt generator (it’s the same tool, set to “Receipt”).

Quick comparison

• Purpose — invoice: requests payment · receipt: confirms payment
• Timing — invoice: before payment · receipt: after payment
• Shows a balance due? — invoice: yes · receipt: no (paid in full)
• Who needs it — invoice: you, to get paid · receipt: the customer, for their records

What about a quote or estimate?

Those come earlier still — a quote or estimate prices a job before you do the work. The usual order is: estimate/quote → invoice → receipt. See also how to write an invoice.