The short version
Send an invoice when you want to be paid. Send a receipt when you have been. If the client pays everything at the counter, one sales receipt does both jobs. If they pay in pieces, the invoice stays the same and each piece gets its own receipt.
Invoice and receipt side by side
| Point | Invoice | Receipt |
|---|---|---|
| What it is | A request for payment | Proof that payment arrived |
| When it is sent | Before the money arrives | After the money arrives |
| Who sends it | The seller to the buyer | The seller to the buyer |
| What it shows | What is owed, the due date and how to pay | The amount received, the date, the method and any balance still due |
| How many per job | Usually one | One for each payment |
| Proves the client paid | No | Yes |
The receipt and invoice glossary entries cover each document alone. A third document, the remittance advice, comes from the buyer and says a payment was sent. It is not proof that the money arrived.
One $1,500 job, one invoice, two receipts
A contractor finishes a $1,500 repair on November 1 and sends invoice INV-1042. The client pays $500.00 on November 5 and the other $1,000.00 on November 20. The numbers are made up.
| Date | Document | Amount | Balance due |
|---|---|---|---|
| Nov 1 | Invoice INV-1042 sent | $1,500.00 | $1,500.00 |
| Nov 5 | Receipt R-1042-1 for a part payment | $500.00 | $1,000.00 |
| Nov 20 | Receipt R-1042-2 for the final payment | $1,000.00 | $0.00 |
The invoice keeps its number and its $1,500.00 total the whole time. Each receipt names the invoice it applies to, the date, the amount and the method. The first receipt says $1,000.00 is still due. The second says $0.00, and the job is closed. A client's account statement would show the same three lines in one list.
Which one do you need?
- The work is done and the client has not paid: an invoice.
- A client paid part of an invoice: a receipt for that part, showing the balance.
- A client paid a deposit before the work: a receipt for the deposit. The final invoice then shows the deposit as already paid.
- A customer paid in full at the counter: one sales receipt, with no invoice before it.
- A client asks for proof of payment: a receipt, or the invoice marked paid with the date and amount.
Records to keep
The IRS tells small businesses that the records they keep must clearly show income and expenses, and that records should last as long as needed to prove what is on a tax return. An invoice shows what you billed. A receipt shows what you were paid and when. Keep both, filed by invoice number, so any payment can be matched in a minute.
Make them here
The invoice generator and the receipt maker are free with no signup. For rent or a donation, the rent receipt and the donation receipt template add the wording each one needs. The wider comparison with quotes and estimates is in estimate, quote, invoice and receipt. For what goes on the invoice itself, see what to include on an invoice.
Sources
Common questions
What is the difference between an invoice and a receipt?
An invoice is a request for payment sent before the money arrives. A receipt is proof of payment sent after it arrives. The invoice states what is owed and when. The receipt states what was received, on what date, by what method, and what is still owed.
Do I need to send both an invoice and a receipt?
For a job billed after the work, yes: the invoice first, then a receipt when the money lands. For a sale paid on the spot, a single sales receipt does both jobs, because there is nothing to chase.
Is a paid invoice a receipt?
In practice, yes. An invoice marked paid, with the payment date and amount, works as a receipt. A separate receipt is clearer when the payment was partial or covered several invoices.
Does a receipt need its own number?
It helps. Give receipts their own sequence so a receipt number is never mistaken for an unpaid invoice, and quote the invoice number the receipt settles.
Which one do I keep for taxes?
Keep both. The IRS says the records you keep must clearly show your income and expenses, and the invoice and the receipt together show what you billed and what you were paid. How long to keep them depends on the return they support; the IRS page on recordkeeping explains the rule.
What should a receipt show after a part payment?
The amount received, the date, how it was paid, the invoice it applies to, and the balance still due. On the $1,500 job below, the first receipt shows $500.00 received and $1,000.00 still due.
What this is. A comparison written by InvoiceTools. It is general information, not legal or tax advice. The job and the names are made up.
Last reviewed by InvoiceTools, Houston, Texas, on 11 November 2026.