What is the difference between an Invoice and a Receipt.

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  1. What is an Invoice?
  2. What is a Receipt?

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Before we begin, let’s a take a look at the definitions of these words “Invoice” and “Receipt”.

What is an Invoice?

An invoice, is a commercial document issued by a business to a customer relating to a sale transaction and indicating the products, quantities, and agreed-upon prices for products or services the seller had provided the buyer. Payment terms are usually stated on the invoice. This document is issued before payment and it’s purpose is to give the customer a summary of their purchase.

What is a Receipt?

A receipt is a document acknowledging that a person has received money or property in payment following a sale or other transfer of goods or provision of a service. All receipts must have the date of purchase on them.

With this definitions, one can already sense that, invoices are issued before payment while receipts are issued after payment. Which means, Invoices are issued prior to the customer sending the payment, whereas a receipt is issued after the payment has been received. The invoice acts as a request for payment, and the receipt acts as a proof of payment.

Do I need to issue both an invoice and a receipt?

Depending on your industry and business structure, you may not need to issue both an invoice and a receipt. For accountability, you should issue an invoice and a receipt to:

  1. How long it took the customer to make payment.
  2. Easily track debts.
  3. Build trust.

Receipts, however, should be issued any time a payment is received from the customer. If you’re accepting a payment that is made immediately upon providing the goods or services, you don’t need to issue an invoice, but can offer a receipt as proof of payment.

Sample invoice

Below, you’ll find an example of an invoice created with Helene Invoice. All of the mandatory invoice fields are included, and an online payment link is added so the customer can pay instantly online.

Sample Invoice created with the Helene Invoice app.

Sample receipt

Here’s an example of a receipt issued through Helene Invoice. The business details and amount paid are included. This is an example of a receipt for a sale that didn’t require an initial invoice. Therefore, the original invoice number isn’t included. And this receipt is authentic with the signature attached to it.

Sample receipt created with the Helene Invoice app
Sample Receipt created with the Helene Invoice app.

How do I create invoices and receipts with Helene Invoice app?

Helene offers a variety of different business solutions, including invoices and payment receipts.

With Helene Invoices, you can create invoices for free and issue them directly to your customer’s email address or share via whatsApp. You can include your bank information to accept bank transfers, or choose to include a payment link to.

Helene Invoice offers several different payment options including Bank payment, Paypal, Payoneer, Mobile Money, M-Pesa. Each time you accept payment from a customer, you have the option to send a receipt to the customer’s email or print it with a card reader printer.

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