Invoice vs. estimate: what's the difference?
People often use "invoice," "estimate," and "quote" interchangeably — but they're different documents that do different jobs. Getting them right keeps your billing clear and your clients happy. Here's the simple version.
The short answer
An estimate (also called a quote) is sent before the work, proposing a price. An invoice is sent after the work, requesting payment.
What is an estimate?
An estimate is your proposed price for a job that hasn't started yet. It tells the customer what to expect and lets them approve the cost before you begin. Estimates are not a demand for payment — they're a sales document. Key traits:
- Sent before work begins
- Shows projected costs (labour, materials, parts)
- Often has an expiry date ("valid for 30 days")
- Not legally a bill — it sets expectations
What is an invoice?
An invoice is a formal request for payment for work that's been done or goods delivered. It's a legal record. Key traits:
- Sent after the work is complete
- Has a unique invoice number and payment terms
- States the exact amount owed
- Used for accounting and tax records
How they work together
For many businesses the workflow is: send an estimate → customer approves → do the work → convert the estimate into an invoice. Because the line items are usually identical, good invoicing tools let you turn an approved estimate into an invoice in one click, so you don't retype anything.
Send estimates and invoices from one place — and convert one into the other in a click.
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