Invoice vs Receipt: What’s the Difference?

If you’re running a freelance business or side hustle, you’ve probably heard the terms “invoice” and “receipt” tossed around — sometimes interchangeably. But they serve very different purposes, and knowing when to use each one can make your business look more professional and help you get paid faster.

📄 What is an invoice?

An invoice is a request for payment. You send it before you’ve been paid, usually after completing a project or service. It outlines what was done, how much it costs, and how and when the client should pay you.

In short: You send an invoice to get paid.

🧾 What is a receipt?

A receipt is a record of payment. You send it after you’ve received payment as proof that the client has paid. It’s helpful for both you and your client for tracking and tax purposes.

In short: You send a receipt after you’ve been paid.

🔍 Key differences

Feature	Invoice	Receipt
When it’s sent	Before payment	After payment
Purpose	Request payment	Confirm payment
Includes total due?	✅ Yes	❌ No (payment already made)
Used for	Billing clients	Payment confirmation / records

📌 Why it matters

Using the right document helps avoid confusion, keeps your records clean, and shows clients you’re running a professional operation.

If you send an invoice, make sure to follow up with a receipt once you’ve been paid — especially if the client requests one.

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