Invoice vs receipt: what is the difference?
Small businesses often mix up invoices and receipts. They do different jobs, and using the right one keeps your books clear.
Invoice: a request for payment
You send an invoice before you are paid, usually for a job or an order on credit. It lists what was supplied, the amount, the due date and how to pay, such as your till, paybill or bank details.
Receipt: proof of payment
You give a receipt after the customer has paid. It shows what they bought, the amount, the date and who served them.
What to put on both
Your business name and contact, a unique number, the date, the items with quantities and prices, and the total.
- Invoices also need the client's name, a due date and payment details
- Receipts should show the amount paid and how it was paid
Tax
Some businesses must issue tax invoices through KRA's eTIMS. Check KRA's guidance for your business. Hesabu makes invoices and receipts for your own records and your customers, and does not replace eTIMS where it is required.
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Can I turn an invoice into a receipt?
In Hesabu, mark an invoice as paid and the sale is recorded and the stock updated. You can then share the details with your customer.