What’s the difference between an invoice and a receipt?

An invoice and a receipt serve different purposes in the financial transaction process. An invoice is a formal request for payment that outlines the details of goods or services provided, along with the amount due. It’s sent to the client before payment is made. On the other hand, a receipt is issued after the payment is made and acknowledges that the payment has been received. In short, an invoice initiates the payment process, while a receipt confirms the completion of the payment.