Guide · Documents
Invoice vs receipt
They look similar and both mention money, but they do different jobs. An invoice asks for payment; a receipt proves payment was made.
The one-line difference
An invoice creates a receivable: the client owes you. A receipt closes the loop: the client paid, and here is the proof. Sending a receipt before payment is confusing; sending an invoice after payment is unnecessary unless the client asks for a paid copy.
What each one includes
| Field | Invoice | Receipt |
|---|---|---|
| Purpose | Request payment | Prove payment |
| Number | Invoice number | Receipt number |
| Date | Issue and due date | Payment date |
| Amount | Total due | Amount paid |
| Line items | Description, qty, rate | What was paid for |
| Payment method | How to pay | How it was paid |
| Balance | Amount still owed | Usually zero |
When to issue an invoice
After you deliver the work or ship the goods, or before a deposit is due. The invoice should reference the quote, purchase order or contract and give the client a clear due date and payment method.
When to issue a receipt
When payment arrives. A receipt is useful for card payments, cash, and any client who needs proof for their own records. If you use a payment platform, it may issue the receipt for you.
Can an invoice double as a receipt?
You can mark an invoice “Paid” and add the payment date, but a separate receipt is cleaner. The invoice keeps its original number and total; the receipt references it. Do not edit the invoice total to zero — that breaks the paper trail.
Deposits and partial payments
If the client paid a deposit, the invoice should show the full price and an “Amount paid” line, not a reduced total. The partial payments guide covers installment invoices and how to avoid double-billing.
A simple sequence
- Send the quote and get approval.
- Deliver the work.
- Send the invoice with a due date.
- When payment arrives, send a receipt or mark the invoice paid and file the payment record.
Record keeping
Keep the invoice, the payment evidence and the receipt together. The record keeping guide covers how long to keep them. If a payment is reversed or short, a credit note keeps the original invoice intact.
Related
How to write an invoice
The seven parts of a US invoice, a worked example and common mistakes.
Invoice record keeping
What to keep, how long, and how to survive an audit or dispute.
Payment terms and late payment
Net 30, due dates and a reminder sequence that works.