Small Business Invoicing

Invoice vs Receipt: What Is the Difference?

An invoice requests payment. A receipt confirms payment. Learn when small businesses use each document and what records to keep.

By Reinvoice Team
··1 min read

Quick answer

An invoice is sent before payment to request money for goods or services. A receipt is sent after payment to confirm money was received. Small businesses should keep both when possible because they show different parts of the payment record.

Invoices and receipts are often confused because both relate to payment. The difference is timing: an invoice asks for payment, while a receipt proves payment happened.

What an invoice does#

An invoice lists what was provided, how much is owed, when payment is due, and how the customer can pay. It is a formal request for payment.

What a receipt does#

A receipt confirms payment was received. It usually includes the payment date, amount paid, payment method, customer, and what the payment covered.

Which one should you keep?#

Keep the invoice, payment confirmation, and receipt when available. Together they show what was billed, what was paid, and when the payment happened.

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