The difference between an invoice and a receipt comes down to timing: an invoice requests payment before money changes hands, while a receipt confirms payment after. They get mixed up constantly, but using the wrong one at the wrong time creates real confusion. Here's how to tell them apart.
An invoice is a document you send when someone owes you money but hasn't paid yet. It spells out what you delivered, how much they owe, and when payment is due. You'll see invoices in freelance work, B2B deals, recurring services-anywhere payment doesn't happen on the spot.
A good invoice includes: your business info, the client's details, an invoice number, date and due date, itemized line items with prices, total amount due, and payment instructions.
A receipt confirms that money actually changed hands. It's issued after payment and serves as proof the transaction is complete. Every retail purchase, restaurant meal, or cash transaction should come with one.
A good receipt includes: business info, receipt number, date, what was purchased, total paid, and payment method.
Send an invoice when you're billing a client for completed work, selling on Net 30 terms, or setting up recurring charges.
Issue a receipt when someone pays at checkout, settles an invoice, hands you cash, or completes any payment. For more detail on receipts issued after invoice settlement, see our guide on payment receipts.
Absolutely-and you often should. Send the invoice first, then provide a receipt once payment comes through. That gives you a complete paper trail: the invoice shows what was owed, and the receipt proves it was paid. For retail purchases where payment is immediate, a receipt alone does the job.
Invoices and receipts work as a team-one requests the money, the other confirms it landed. Using the right document at the right time keeps your books clean and your clients clear. Need to create either one? Start here and have it ready in seconds.