2026-02-04 · 4 min read
Invoice vs receipt: what is the difference?
An invoice requests payment; a receipt proves it was made. When you need one, when the other is enough, and why the distinction matters for tax.
The two words get used interchangeably in conversation, but in bookkeeping they do different jobs.
Invoice
An invoice is issued before or at the moment payment is requested. It states what was supplied, the amount due and the deadline. It creates a record of a receivable — money your customer owes you.
Receipt
A receipt is issued after payment. It confirms that the amount was received and closes the transaction. For a seller it is proof of income; for a buyer it is proof of expense.
Related documents
- Proforma invoice — a preliminary bill, often used for customs or approval before delivery.
- Credit note — a document reducing an invoice after an error or a return.
- Statement — a list of outstanding invoices for a customer over a period.
- Purchase order — issued by the buyer, authorising the spend before you invoice.
Which one do you need?
If money is still owed, issue an invoice. If money has already changed hands and your customer needs proof, issue a receipt. If a transaction involves both — a deposit followed by a balance — you will normally invoice for each stage and receipt each payment. Keeping the two distinct makes reconciliation far easier at year end.
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