Invoice vs Receipt: What's the Difference?
Invoices and receipts are both financial documents but serve opposite purposes in a transaction.
Invoice vs Receipt
| Invoice | Receipt |
|---|---|
| Request for payment | Proof payment was made |
| Sent before or during payment | Sent after payment |
| Shows amount owed | Shows amount paid |
| Triggers accounts receivable | Closes accounts receivable |
When You Need an Invoice
Issue an invoice when billing a client who will pay later (Net 30) or at a future date. Common in B2B and freelance work.
When You Need a Receipt
Issue a receipt immediately after receiving payment — especially for cash, POS, and e-commerce transactions.
Can One Document Be Both?
Some businesses send an invoice marked "PAID" as a receipt. Better practice: send invoice first, then a separate receipt upon payment confirmation.
Create Professional Invoices
Generate PDF invoices free — add "PAID" stamp in notes when payment is received.