Confused about when to use an invoice, estimate, or quote? This guide explains the differences and when to use each document in your business.
BillingOtter Team
As a freelancer or small business owner, you send different documents at different stages of a job. Here is what an estimate, a quote and an invoice each mean, and when to use them.
An estimate is an approximate price for the work. It is non-binding and is used when the exact scope is not settled yet.
To send one quickly, use the free estimate generator. Our guide on how to write an estimate that wins the job covers what to put in it.
A quote gives a fixed price for a clearly defined scope of work. Unlike an estimate, a quote is usually binding once the client accepts it.
An invoice is a request for payment, issued after the goods or services have been delivered. It is the last step in the billing process and also the record of the sale. See what is an invoice for the nine parts every invoice needs.
Yes. The invoice should use the same line items and prices as the accepted quote, so the client can approve it without questions. If the scope changed along the way, agree the change in writing first and show it as its own line on the invoice.
BillingOtter handles estimates, quotes and invoices in one place. Clients can e-sign estimates on Creator Pro and Team.
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The anatomy of an estimate clients say yes to: scoping, line items, validity dates, options - and the mistakes that lose jobs or profit.
Learn the essential elements of a professional invoice, common mistakes to avoid, and how modern invoicing software can help you get paid faster.
A plain-language definition of an invoice, the nine things every invoice must contain, how it differs from a receipt, a bill and an estimate, and a worked example.