Invoice vs Quote: When to Use Each
Quotes win the work. Invoices collect the money. Sending the wrong one at the wrong time confuses customers and delays payment.
What is a quote?
A quote (or quotation) states the price you will charge for defined work, usually with a validity period such as 30 days. It is an offer, not a bill, so no payment is expected.
What is an invoice?
An invoice is issued once the work is delivered or a payment milestone is reached. It creates a legal obligation to pay by the due date.
How binding is a quote?
Once the customer accepts a quote in writing, it usually forms a contract at that price. Estimates, by contrast, are non-binding approximations — label your document carefully.
Converting a quote to an invoice
Keep the same line items and totals, change the title to "Invoice", assign a new invoice number and add the due date and payment details.