Invoice vs Bill

What is invoice?

An invoice is the term the seller uses — it's their itemized request for payment, with an invoice number and payment terms, recorded as accounts receivable.

What is bill?

A bill is what the recipient typically calls an amount they owe, recorded as accounts payable. In everyday use “bill” can also mean an immediate, walk-up charge (like a restaurant bill), but for B2B work it's usually the same document as the invoice.

Invoice vs Bill: the key differences

Here's how invoice and bill differ at a glance:

• Perspective — seller's invoice is the buyer's bill.
• Accounting — invoice sits in receivables; the bill sits in payables.
• Formality — invoices carry numbers and terms; “bill” is the informal word for owing.

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