An invoice is the request. A receipt is the confirmation. They come at different points in a transaction, and mixing them up is one of the most common small-business mistakes.
Invoice: 'You owe me'. An invoice is issued before payment. It says the customer owes a specific amount for specific goods or services. Until it's paid, it's a liability on the customer's books and a receivable on yours.
Receipt: 'I got it'. A receipt is issued after payment. It confirms that a specific amount was paid for specific goods or services. It's proof for the customer that they paid and proof for you that you received.
Do you need both?. For most B2B transactions, yes. The invoice is the demand, the receipt is the confirmation. Both matter for accounting and dispute resolution.
What a receipt should include. A good receipt has:
Automated receipts save time. When a customer pays a Glo Invoice invoice online, they automatically get a receipt by email. You don't have to remember to send one — it happens the moment the payment posts.
Frequently asked questions
Can an invoice serve as a receipt?
Only if it's clearly marked as paid — with the date and payment method. In practice, sending a separate receipt is cleaner and avoids confusion.
Do I need to give a receipt for cash payments?
In most cases yes — many states require it above a certain amount. It's also good practice regardless.
What about a 'paid invoice' stamp?
It works but is old-school. Modern invoicing apps just mark the invoice as paid and email a receipt automatically.
