Invoice vs. Receipt vs. Quote: What's the Difference?
Updated
All three list the same work and the same prices, which is why they get mixed up. The difference is timing: each one belongs to a different moment in the same job.
Side by side
| Quote | Invoice | Receipt | |
|---|---|---|---|
| When | Before the work | When the work is done, or at a milestone | When payment arrives |
| What it says | This is what it will cost | This is what you owe | This is what you paid |
| Key date | Valid until | Due date | Date paid |
| Bottom line | Estimated total | Total due | Amount paid, balance zero |
| Asks for money? | No | Yes | No |
Free fill-in versions of all three are in the template library.
Quote (or estimate)
A quote is your price for a described piece of work, given before you start. Include a quote number, what's included and what isn't, the total, and how long the price holds. An estimate is a looser version: your best guess, which may move as the job unfolds. Whichever you send, say what would change the number. When the client signs or says yes, it becomes the basis for your invoice. Make one with the free quote maker.
Invoice
An invoice is the formal request to be paid. It carries a unique number, the issue date, a due date or payment terms, each line of work, sales tax if any, the total due, and how to pay. For the full checklist, see what to include on a US invoice.
Receipt
A receipt confirms the money arrived. It shows who paid whom, the date, what was paid for, the amount, and the method, such as cash, check or a card ending in four digits. Never write a full card number on a receipt. Customers keep receipts for their records, expense claims and returns. The free receipt maker adds the zero-balance line for you.
Other documents you'll hear about
- Pro forma invoice: a preview of an invoice sent before delivery, often for a deposit or customs. It isn't a demand for payment.
- Purchase order (PO): sent by the buyer to say what they're ordering. Big clients often want the PO number on your invoice.
- Statement: a summary of every open invoice for one client, handy when they owe you for several jobs.
- Bill: in everyday use, the same thing as an invoice, seen from the client's side.
Questions
Can an invoice be used as a receipt?
Not on its own. An invoice says money is owed; it doesn't prove it was paid. Mark it paid with the date and method, or send a separate receipt.
Is a quote legally binding?
A quote the client accepts can form part of a contract, so price carefully and state how long it's valid. An estimate is generally treated as a guide rather than a fixed price.
Do I need to send a receipt if I already sent an invoice?
It's good practice, and some clients need one for their books. It also closes the loop: the client knows their payment arrived.
Ready to send yours?
Free to fill in with no account: the invoice generator, the quote maker and the receipt maker.