Invoice vs Receipt vs Quotation: What's the Difference?

"Can you send me an invoice?" "I already sent the receipt." "Wait, was that a quote or a bill?" These three documents get mixed up constantly — and using the wrong one at the wrong stage of a transaction can confuse clients or even cause accounting headaches.

Quotation: before the work starts

A quotation (or "quote") is sent before any work begins. It's a proposed price for a job, not yet a request for payment. Quotations typically:

• Have an expiration date ("valid for 30 days")
• Are not legally binding to pay — they're an estimate the client can accept or negotiate
• Often convert directly into an invoice once accepted

Invoice: requesting payment for work done

An invoice is sent after goods or services have been delivered (or, for deposits, at an agreed milestone). It is a formal request for payment and typically includes a due date, payment terms, and a unique invoice number for tracking. Unlike a quote, an invoice represents money actually owed.

Receipt: proof that payment was already made

A receipt is issued after payment has been received. It confirms the transaction is complete — no balance is owed. Receipts are mainly used for the buyer's records (expense tracking, reimbursement, warranty claims) rather than to request anything further.

A simple way to remember it

Why this matters for your business

Using the right document at the right stage keeps your books clean and avoids confusing clients about what's actually owed. It also matters for tax purposes in most countries — only an invoice (not a quote) typically counts as a formal record of revenue owed.

A good invoicing tool should support all three document types from one place, so a quotation can convert into an invoice — and a paid invoice into a receipt — without re-entering any data. Invoice Jaguar supports quotations, invoices, and proforma documents from a single dashboard; see the full feature list.