Invoice vs receipt: what’s the difference?
An invoice and a receipt are easy to mix up, but they do opposite jobs. An invoice requests payment before it is made; a receipt confirms payment after it is made. Getting the difference right keeps your records clean and your customers clear on what they owe — and what they have already paid.
The core difference
Invoice = request
Sent before payment to ask for money owed.
Receipt = proof
Given after payment to confirm it was made.
Timing
Invoice first, receipt second — sometimes both for one sale.
Records
Invoices track money owed; receipts track money received.
When to use each
Billing later? Send an invoice
For work or goods the client will pay for after delivery.
Paid on the spot? Give a receipt
For cash, card or instant payment at the point of sale.
Both can apply
Invoice on delivery, then a receipt once they pay.
Mark invoices "paid"
A paid invoice can double as a receipt.
Keep copies
Store both for your accounts and tax.
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Frequently asked questions
What is the difference between an invoice and a receipt?
An invoice is a request for payment, issued before the customer pays. A receipt is proof of payment, issued after the customer pays. One asks for money; the other confirms it was received.
Can a receipt replace an invoice?
Not usually. They serve different purposes. For credit sales you need an invoice to request payment; a receipt only confirms payment already made. For instant cash sales a receipt alone is often enough.
Is a paid invoice the same as a receipt?
An invoice clearly marked "Paid", with the payment date, can serve as a receipt because it proves the amount was settled.
Do I need to keep both?
Yes — keep invoices and receipts for your bookkeeping and tax records. They evidence both money owed and money received.
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