Invoice vs Receipt
An invoice asks for payment; a receipt confirms payment was received. Here is how they differ, what each usually includes, and when to send them.
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The short answer
An invoice asks the client to pay. A receipt confirms that they have paid. The invoice comes first and shows what is owed and when it is due; the receipt comes after payment and shows how much was paid, when, and how.
Invoice vs receipt at a glance
| Invoice | Receipt | |
|---|---|---|
| Purpose | Requests payment | Confirms payment |
| When it is sent | Before payment, after work or delivery | After payment |
| Key dates | Invoice date and due date | Payment date |
| Shows | Amount due, payment terms, how to pay | Amount paid, payment method, any balance left |
| Reference | Invoice number | Receipt number, often quoting the invoice number |
What an invoice usually includes
- Your business name and contact details, and the client's name and address
- A unique invoice number and the invoice date
- Line items with quantity, rate and amount
- Subtotal, tax, discount and total due
- Due date or payment terms, and payment details
See how to make an invoice for a step-by-step guide.
What a receipt usually includes
- The seller's name and the buyer's name
- A receipt number, and the invoice number it relates to if there was one
- The date payment was received and the payment method
- What was paid for and the amount paid, including any tax shown
- Any amount still outstanding
Using this template for both
The invoice template is built for invoices. When a client pays, a common approach is to keep the same document, add “Paid” with the payment date and method in the Notes box, and save a new PDF for your records. If a client asks for a formal receipt, check what they need it to show.
Related guides
- Invoice numbering: how to number invoices so each one is unique.
- Payment terms: wording for due dates and late payment.
- Estimate vs invoice: price the job before you bill it.
FAQ
Is an invoice the same as a receipt?
No. An invoice is a request for payment. A receipt is a record that payment has been made. They often list the same items, but they are used at different times.
Which comes first, the invoice or the receipt?
Usually the invoice. You send it when the work is done or the goods are delivered, and you send the receipt after the client has paid. In a shop where payment happens on the spot, often only a receipt is issued.
Can a paid invoice be used as a receipt?
Many businesses mark an invoice as paid and add the payment date and method, and some clients accept that as proof of payment. Whether it is enough for tax or expense purposes depends on local rules and on what the client needs.
Do I need to send a receipt if the client paid by bank transfer?
It depends on your client and where you work. Many clients only need the invoice and their own bank record, while others ask for a receipt. If in doubt, ask the client or your accountant.
General information only, not tax, legal or accounting advice. Invoice and tax rules differ by country, state and industry, so check with your local tax authority or an accountant for your situation.