They both involve money changing hands, but an invoice and a receipt do different jobs — and mixing them up can cause real confusion with clients and accounting.
An invoice is a request for payment, sent before money changes hands. A receipt is proof that payment was already made, given after. One asks for money; the other confirms it arrived.
| Invoice | Receipt |
|---|---|
| Sent before payment | Given after payment |
| Requests a specific amount by a due date | Confirms an amount was received |
| Includes payment terms and due date | Includes payment date and method |
| Used to track what's owed | Used as proof of purchase |
| Sent by the seller to request payment | Sent by the seller to confirm payment |
If you send a client a "receipt" for work they haven't paid for yet, it's confusing — a receipt implies the transaction is already complete. Likewise, if a client asks for a receipt after paying an invoice, sending them the original invoice again doesn't actually confirm the payment was received on your end.
For accounting and tax purposes, the distinction matters too: invoices show what was billed, receipts show what was actually collected. Businesses often need both records to reconcile their books.
Typically: yes. Send the invoice first to request payment. Once it's paid, a simple confirmation — even just marking it "paid" with a note on the same document — often covers the receipt requirement for smaller transactions. Some clients, especially larger companies, may still ask for a separate receipt for their own records.
Ledger tracks invoice status automatically, so you always know what's billed vs. paid.
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