Difference Between Invoice and Receipt
Invoices and receipts are both important business documents, but they are used at different stages of a transaction.
This guide is part of our Invoice Examples and Invoice Rules hub.
What is an invoice?
Invoices are documents used to request payment before customers complete payment.
What is a receipt?
Receipts are documents that confirm payment has already been completed.
Invoice vs receipt explained simply
Invoices request payment while receipts confirm payment.
When businesses use invoices
Businesses commonly use invoices when:
- providing services
- allowing delayed payments
- tracking outstanding balances
- working with business clients
When businesses use receipts
Businesses commonly use receipts when:
- payments are completed
- customers require proof of payment
- transactions need confirmation
Do invoices count as receipts?
Unpaid invoices normally do not count as receipts because payment has not yet been completed.
Frequently asked questions
What is the difference between an invoice and a receipt?
Invoices request payment while receipts confirm payment has already been completed.
When are invoices used?
Invoices are commonly used before payment is completed.
When are receipts used?
Receipts are normally issued after payment has been completed.
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