Basics
Invoice or receipt? What each one is, and when to give it
An invoice asks for money and a receipt says it arrived. What each must show, when a paid invoice is enough, and what to give for cash, deposits and part payments.
10 Oct 2026 · 6 min read
A customer pays and then writes, “Can you send me a receipt?” You already sent an invoice, so you send that again. They write back that their accounts team needs proof of payment, not the bill. The two documents look alike and carry the same amounts, which is why they get mixed up. They answer two different questions.
The difference in one line
An invoice asks for money. A receipt says the money arrived. An invoice comes before the payment and a receipt comes after it.
| Invoice | Receipt | |
|---|---|---|
| What it says | You owe this amount | This amount has been paid |
| When it is given | When the work is done or the goods are sent | When the money arrives |
| The key date | The due date | The date of payment |
| What the customer uses it for | To approve and make the payment | To prove the payment was made |
| What you use it for | To record a sale and what is owed | To record that the invoice is closed |
What a receipt must show
- your business name, and your tax number if you have one;
- the customer's name;
- the amount received, and the currency;
- the date the money arrived;
- how it was paid: cash, bank transfer, card, cheque, UPI;
- the number of the invoice it pays;
- what is still owed, if it was not paid in full.
What the invoice itself must show is a longer list. It is in our checklist of what every invoice must show.
When a paid invoice is enough
For most work between two businesses, you do not need a second document. The invoice, marked paid, with the date and the way it was paid, does the job of a receipt. Send the customer that copy and most accounts teams are satisfied.
The word that matters is marked. An invoice that still says “Due” proves nothing, even if the money is in your bank. Record the payment first, then send the copy.
When you need a receipt of its own
- Cash. Cash leaves no bank record. A receipt is the only proof either of you has, so give one every time.
- A sale over the counter. The customer pays on the spot and there is nothing to wait for. One printed slip serves as both the bill and the proof of payment.
- A deposit or advance. Money arrives before the final invoice exists. See deposit invoices.
- Part payments. Each payment gets its own proof, showing what was paid and what is left. See payment plans.
- The customer asks. Some need it for an expense claim or for their own tax records. It costs you a minute.
Never give a receipt before the money arrives
A receipt is your written statement that you have been paid. If you hand one over on a promise, a cheque that has not cleared or a screenshot of a transfer, and the money never comes, the customer holds a document that says it did. Check your bank first. For a cheque, write “subject to clearing” on the receipt.
Three mix-ups to avoid
- Sending the invoice again as a receipt. It still shows an amount due and a due date. Mark it paid first.
- Giving the receipt a new invoice number. A receipt is not a second sale. It refers to the invoice it pays. See how to number invoices.
- A receipt for the wrong amount. If the customer paid less than the invoice, the receipt shows what arrived, not what was billed. See why a client paid less.
What to keep
Keep both: the invoice shows the sale, and the record of the payment shows it was settled. Together with the bank line they are the full story of one sale, which is what your accountant and the tax office ask for. See what to send your accountant each month.
The short version
- An invoice asks for money. A receipt says it arrived.
- A receipt shows the amount, the date, how it was paid and which invoice it pays.
- Between businesses, an invoice marked paid is usually enough.
- Give a separate receipt for cash, counter sales, deposits and part payments.
- Never give a receipt until the money is in your account.