Invoice Maker › Invoice Tips › Invoice vs. Receipt
Invoice vs. Receipt
They look alike, but they do opposite jobs. Here's the difference, plus quotes and estimates.
The short version: an invoice asks for money; a receipt says you got it. An invoice goes out before payment and says "here's what you owe." A receipt goes out after payment and says "thanks, you're all paid up."
| Invoice | Receipt | |
|---|---|---|
| When | Before payment | After payment |
| Purpose | Request payment | Prove payment |
| Key info | Amount due, due date, how to pay | Amount paid, date paid, payment method |
| Who keeps it | Both (client pays it, you track it) | Mostly the customer, for their records |
What about quotes and estimates?
Those come even earlier. A quote or estimate is a price you give before the work starts. A quote is usually a fixed price; an estimate is an educated guess that might change. Once the customer says yes and you do the work, you send the invoice. Once they pay, you can send a receipt.
Can an invoice be a receipt?
Pretty much. If a client pays in full and wants proof, you can send the same invoice with the full payment under "Amount paid," so the balance due shows zero, and add "PAID" plus the date and payment method in the notes. In our invoice maker, just enter the payment in "Amount paid" and change the title from "INVOICE" to "RECEIPT."
Do I need to send receipts?
Customers often need receipts for expenses, reimbursements or taxes, so send one when asked. Many payment apps send receipts automatically. Either way, keep your own records of every invoice and payment.