Invoice vs Receipt: What's the Difference?

Invoice vs receipt explained: when to send each, what each must contain, and how to make both for free.

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The short answer

An invoice asks for payment. A receipt confirms payment was received. You send the invoice first; the receipt after the money arrives.

What changes on a receipt

A receipt shows the amount paid, date of payment and method (card, transfer, cash), and usually says "PAID". You can turn an invoice into a receipt by adding a paid note and payment date.

Do I need both?

Many clients only need the invoice. Businesses that reimburse expenses, or clients paying cash, often ask for a receipt too. Keep copies of both for your taxes.

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