Invoice vs Receipt: What's the Difference?

The core difference

An invoice is a request for payment, sent before money changes hands. A receipt is proof that payment has already been made. If you're still waiting to get paid, you need an invoice. If the payment already landed, you need a receipt.

Why receipts matter

A receipt gives your client a clean record for their own bookkeeping and confirms, on paper, that the transaction is settled. It also protects you — if a client later disputes a charge, a receipt shows exactly what was paid and when.

What to include on a receipt

A receipt number, the date of payment, what was paid for, the amount, and the payment method (bank transfer, card, PayPal, cash). Unlike an invoice, a receipt doesn't need a due date or payment terms — the transaction is already complete.

Do you need both an invoice and a receipt?

For most transactions, yes. Send the invoice first to request payment, then send a receipt once it's been paid. Some businesses skip the receipt for very small or informal transactions, but it's good practice to send one whenever a client might need it for their own records.

Need to confirm a payment? Create a free receipt.