The core difference

An invoice is sent before payment. It tells the buyer what they owe and when it is due. A receipt is issued after payment. It tells the buyer that the transaction is settled.

Think of an invoice as the question — "Can you pay me?" — and a receipt as the answer — "Yes, paid in full."

Side-by-side comparison

InvoiceReceipt
Sent before paymentSent after payment
Requests money owedConfirms money received
Includes payment terms & due dateIncludes payment method & date paid
Used to track accounts receivableUsed as proof of purchase
Common in B2B transactionsCommon in retail & B2C transactions

Do you need both?

In many freelance and small business contexts, yes. The invoice creates the paper trail that money is owed; the receipt closes it once payment arrives. Both can be important for tax filing, expense claims, and dispute resolution.

What about a proforma invoice?

A proforma invoice is a preliminary document sent before goods or services are delivered. It looks like a regular invoice but is not a payment demand — it is closer to a confirmed quote. It becomes a real invoice once the work or delivery is complete.