Core concepts
Invoice vs. receipt
An invoice is a request for payment sent before money changes hands, while a receipt is proof of payment issued after the buyer has paid.
The core difference
An invoice and a receipt sit on opposite ends of a transaction. The invoice comes first: it tells the buyer what they owe and asks them to pay. The receipt comes last: it confirms that the buyer has paid and the balance is settled.
Put simply, an invoice is a demand for payment and a receipt is evidence of payment.
When each is used
You send an invoice when work is done or goods are delivered and you’re waiting to be paid. You issue a receipt once the payment lands, so the customer has proof for their records, returns, or expense reports.
Some transactions only need one of the two, a cash sale at a counter produces a receipt with no invoice, while a Net 30 B2B sale produces an invoice that may later be matched with a receipt.
Example: A photographer sends an invoice for a $1,200 shoot. After the client pays, she sends a receipt confirming the $1,200 was received in full.
FAQs
Frequently asked questions
Can a document be both an invoice and a receipt?
A single document can serve both roles if it’s marked "Paid" once payment is received, but the invoice function (requesting payment) and receipt function (confirming payment) are distinct.
Which do I need for taxes?
Both can support your bookkeeping. Invoices document amounts billed; receipts document amounts actually paid. Keep both for clean records.
Related terms
Invoice
An invoice is a document a seller sends to a buyer that itemizes goods or services provided and requests payment by a stated due date.
Invoice payment
An invoice payment is the funds a buyer sends to a seller to settle the amount owed on an invoice, by or before its due date.
Invoice number
An invoice number is a unique identifier assigned to each invoice so it can be tracked, referenced, and reconciled in accounting records.
Sales invoice
A sales invoice is the standard document a seller issues to a buyer to request payment for goods or services that have been sold.
Put it into practice
WaffleInvoice lets you create branded invoices, set payment terms, collect payments online, and automate reminders, free for unlimited invoices.
Send invoices and mark them paid Browse the glossaryNo credit card required.