Accounting & finance

Invoice vs receipt

An invoice is a request for payment sent before money changes hands; a receipt is proof of payment issued after — different documents, different jobs.

An invoice is a request for payment; a receipt is proof of payment. The invoice comes first and asks for money owed; the receipt comes after and confirms money paid.

How it works

  • An invoice lists what’s owed, the terms (e.g. Net 30) and a due date — it creates an accounts receivable entry.
  • A receipt is issued once payment clears, acknowledging the transaction is settled.
  • Same transaction, two documents, two moments: obligation, then discharge.

One asks; the other confirms. Mixing them up muddles what’s actually been collected.

Why it matters

For bookkeeping, the distinction is the difference between “billed” and “paid” — revenue you’re owed versus cash you hold. Customers need receipts for their own records and tax claims, and businesses need invoices to prove and chase what’s due. Sending a receipt when you meant an invoice can quietly signal a bill as settled when it isn’t.

How Fynex does it

Fynex issues invoices with branded payment links, then auto-reconciles each payment and posts it back to your books — so the “paid” confirmation is automatic, not a second document you chase. See Invoicing & Collections.

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