What is the difference between an invoice and a receipt?

An invoice is a request for payment sent before you have been paid, showing what is owed and when it is due. A receipt is confirmation that payment has already been made, showing the amount paid and the method used.

Do I send an invoice or a receipt first?

The invoice comes first because it requests payment. The receipt comes after, once the payment has actually been received, to confirm the transaction is complete.

Is a paid invoice the same as a receipt?

They overlap but are not identical. A paid invoice shows the original request marked as settled, while a dedicated receipt focuses on confirming the amount, date, and method of payment as proof of purchase.

Invoice vs receipt: what's the difference?

Updated June 2026

Invoices and receipts are easy to confuse because they often list the same items and amounts. But they do opposite jobs. The simplest way to remember it: an invoice asks for money, a receipt proves money changed hands.

What an invoice is

An invoice is a request for payment. You send it before you've been paid, after delivering goods or completing a service. It tells the client what they owe, why they owe it, and when it's due. Because it creates an obligation to pay, an invoice typically carries a unique invoice number, an issue date, a due date, payment terms, and the total amount outstanding. Until that total is paid, the invoice represents money owed to you — what accountants call accounts receivable.

What a receipt is

A receipt is confirmation that payment has already been made. You issue it after the money arrives, as proof the transaction is complete. A receipt records what was paid, when, and how — cash, card, bank transfer, and so on. Unlike an invoice, it doesn't ask for anything; it closes the loop. For the buyer, a receipt is evidence of purchase that supports returns, warranties, and expense claims.

The core differences

1Purpose.

An invoice requests payment. A receipt acknowledges payment received. That single distinction drives everything else.

2Timing.

The invoice comes first, when payment is due. The receipt comes after, once the money has actually been received.

3What it shows.

An invoice shows a balance owed and a due date. A receipt shows an amount paid, the payment method, and usually a zero remaining balance.

4Accounting effect.

An invoice creates accounts receivable for the seller and accounts payable for the buyer. A receipt records that the cash has settled and the balance is cleared.

When to use each

Send an invoice whenever you've delivered work or goods and expect to be paid later — the standard flow for freelancers, agencies, and B2B sales. Issue a receipt once that invoice is paid, or immediately at the point of sale when payment and delivery happen together, as in a shop or online checkout. Many small businesses send both: an invoice to request payment, then a receipt to confirm it. Keeping both on file gives you a clean paper trail for taxes, audits, and any dispute about whether something was paid.

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Bottom line: don't treat the two as interchangeable. Sending a receipt when you meant to request payment is a common slip that leaves money on the table. Get the invoice out first, track it, and only mark it complete once payment lands.