An invoice is sent before payment, asking for money owed. A receipt is given after payment, proving the money changed hands. Think of it as request first, proof second: the plumber invoices you for the repair, then hands you a receipt once you have paid.
The core difference
An invoice requests payment for goods or services; a receipt confirms that payment has already been made.
- invoice — a bill listing goods or services and the amount owed: please pay the invoice within thirty days.
- receipt — proof that money or goods were received: keep your receipt in case you need to return the item.
How to tell them apart
The simplest way to keep these straight is to follow the money. An invoice comes first, while the bill is still owed, and it tells the buyer how much to pay and by when. A receipt comes second, once payment has gone through, and it exists to prove that it happened.
Small business owners often mix them up when doing their own books, since both documents can look similar and both mention an amount. But for accounting and tax purposes the distinction matters: an invoice is evidence of a debt, while a receipt is evidence that the debt was settled.
