The Invoice is used when the business has completed the customer’s order and must collect payment for the goods or services offered. The Receipt is used as proof of payment when the customer pays for a business for goods or services.
Invoice is issued for collecting payments after a company provides goods or services to its customers while the company offers a Receipt to its customers as a register for sale. Invoices are more common from service providers and during business-to-business (B2Bs) transactions. The Receipt is proof of customer pay, issued by companies of all kinds.
Companies generally have to issue invoices to their customers for any transactions made. The seller sends the buyer an Invoice to notify the buyer that the payment is coming. The Receipts showed when the transaction was made, how much the customer paid, and how the customer used it to make the payment. It also lists the items or services the customer has paid for.
What is Invoice?
The Oxford English Dictionary defines the invoice as “a list of goods or services provided, with a statement of the amount due for these goods; an invoice.” Invoices are crucial for small businesses because invoices are business documents that enable companies to get money for their services.
The invoice is a document that lists the products and services provided by the company to the customer and sets out an obligation on the part of the customer to pay for these products and services. Invoices are crucial for small businesses because invoices are business documents that enable companies to get money for their services.
Advantages
- Reminders disbursement
- Remind customers of the work finalized
- Suitable for record-keeping instrument
- Helpful note about corporation and product
Disadvantages
- Unfortunate supervision and insufficient procedures
- Frequently inflowing the same data
- Time taking process
- Invoice margins
What is Receipt?
A receipt is a written admission that part of the value has been transferred from one party to another. In addition to the receipt that consumers usually receive from vendors and service providers, invoices are also issued in inter-company transactions as well as stock market transactions.
In addition, to show the ship, receivers are important for other reasons. For instance, many dealers insist that a customer must show a receiver to exchange or return items, while others ask that a receiver—generally issued within a certain timeframe—be produced for product warfare purposes.
Advantages
- Appropriate Footage of Cash Dealings
- Ease of dispensation
- accuracy of Cash Book
- records minor and actual items
Disadvantages
- No Discovery of Productivity
- No Left-over or Shortage
- No record of Non-Cash Trades
- No Accretion Source
Comparison Chart
| Invoice | Receipt | |
| Meaning | A commercial manuscript demanding payments | A commercial certificate shows payments |
| Purpose | Notifies clients about the amount they repay and when that money is due | Permitted proof that the client paid for the acquisition of a product & services |
| Time Issued | Earlier payment is finished | After payment is complete |
| Details | Business name, logo, business contact information, customer contact information, date of invoice, due date, detailed list of services, price, discount, total amount, and terms of payment | Customer and business contact information, detailed product and services list, the total amount paid, sale date, bill payment date, payment mode |
Conclusion
Invoice and receipt are equally issued by the seller and sent to the customer; its intentions are quite different. While the invoice is issued by retailers across categories, including large and small retailers, receipts can be issued more by small retailers, especially in the case of money bills.