Insights
Best practices and tips on spend management, automated expense tracking and corporate debit cards for Australian SMB and enterprise businesses.
Receipts and invoices are often confused—but for finance teams, especially those overseeing company spend, understanding the distinction is essential. These documents play different roles in accounting, compliance, and reporting. And when they’re not captured or recorded correctly, businesses can face inaccurate books, delayed payments, and audit complications.
If you’re responsible for maintaining financial records, issuing reimbursements, or preparing for BAS, knowing when and how to use a receipt vs an invoice is key. This guide walks you through what they are, what’s required on each, and how to simplify tracking and reconciliation across your business.
What is an invoice?
An invoice is a request for payment. It’s issued by a supplier or vendor to the customer and outlines the goods or services provided, their cost, and when payment is due. Invoices are essential for accounts receivable and cash flow forecasting.
What is a receipt?
A receipt is proof that a transaction has been completed. It confirms that payment has been made and is typically issued after the funds have been received. Receipts are used to validate business expenses and are required for most GST claims.
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Key differences between a receipt and an invoice
| Feature | Invoice | Receipt |
|---|---|---|
| Purpose | Request for payment | Proof of payment |
| Issued | Before payment | After payment |
| Required for | Revenue tracking | Reimbursements, GST claims |
| Includes due date? | Yes | No |
| Used in | Accounts receivable | Accounts payable, audits |
What to include on an invoice
Things to include on an invoice include:
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Business name and ABN
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Invoice date and number
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Customer details
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Description of goods/services
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Total amount and GST breakdown
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Payment terms and due date
What to include on a receipt
Things to include on a receipt include:
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Business name and ABN
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Date of payment
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Payment method (e.g. card, cash)
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Description of goods/services
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Total paid (incl. GST if applicable)
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Receipt or transaction ID
When businesses issue receipts vs invoices
You’ll typically issue an invoice if you’re waiting for payment—and a receipt once payment is completed. Some businesses issue both, depending on customer needs and internal documentation standards.
Why the distinction matters for finance teams
Understanding the difference between receipts and invoices is essential for maintaining clear and accurate financial records.
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Bookkeeping clarity: Avoids confusion over pending vs completed payments
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Tax compliance: The ATO requires valid tax receipts for GST input claims
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Audit trails: Invoices and receipts create verifiable records of all transactions
Things to watch out for in expense documentation
There are some certain things to keep an eye out, including:
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Missing GST breakdowns
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Unclear payment status (was it paid or just invoiced?)
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Duplicate entries in your accounting software
How Budgetly helps you stay organised
With Budgetly, your finance team doesn’t have to chase receipts or worry about incomplete documentation.
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Employees can upload receipts at point of purchase
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Each transaction is automatically matched with a card payment
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Expense data syncs with accounting tools like Xero integration
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Finance teams get visibility into whether invoices are paid and receipts are received
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Use corporate prepaid cards to control and track spend by employee or department
Make receipt tracking part of smarter expense management
Getting receipts and invoices right isn’t just about paperwork—it’s about building financial clarity. With clear documentation practices in place, your team can reduce reconciliation errors and improve expense management without increasing admin load.
Digital tools like Budgetly help finance teams take control by automating receipt capture, matching transactions with company-issued corporate prepaid cards, and syncing everything with your Xero integration. It’s time to take the guesswork out of receipts and get the financial clarity you need.
