An invoice is a request for payment. A receipt is proof that payment was made. They look similar but serve completely different legal and accounting purposes. Here is when to use each one.
An invoice is a document you send to a client before you have been paid. It says
here is what I did, here is what it costs, please pay me by this date. An invoice creates a legal obligation for your client to pay. It is a record of money owed to you. A receipt is a document you issue after payment has been received. It says
I confirm I received your payment of this amount on this date. A receipt is proof that a transaction was completed. It creates no obligation — it simply records that money changed hands.
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