It's one of the most common mix-ups in small business paperwork: invoices and receipts look similar on the page, but they serve opposite ends of the same transaction.
An invoice is a request for payment
You send an invoice before or immediately after delivering goods or services, and it tells the client how much they owe and by when. It's forward-looking — it documents an obligation that hasn't been settled yet.
A receipt is proof that payment happened
A receipt is issued after money has changed hands. It confirms the amount paid, the date, and the method of payment. It's backward-looking — it documents something that's already done.
Why the distinction matters
Mixing them up causes real problems. Sending a "receipt" for work that hasn't been paid for yet can confuse a client into thinking the matter is closed. Sending an "invoice" after payment has already been received looks like you're asking to be paid twice.
A simple rule of thumb
If money is still owed, it's an invoice. If money has already been received, it's a receipt. Many businesses issue both for the same transaction: an invoice to request payment, followed by a receipt once that payment clears.
Invoxaco includes dedicated generators for both, so you're never stuck repurposing the wrong template for the wrong moment in the transaction.