Invoice, receipt, quote and estimate: what is the difference?
Four documents that look alike and do different jobs, and which one to use when.
Quote and estimate: before the work
A quote is a fixed price for defined work. If the client accepts it, that price is what they expect to pay. An estimate is a best guess at the cost, and the final price can change as the work becomes clearer.
If you are unsure which to send, ask whether you are willing to be held to the number. If yes, it is a quote.
Invoice: asking to be paid
An invoice is sent when work is done, or at an agreed stage, and asks for payment. It lists what was done, what it costs and when it is due.
Receipt: proof that payment was received
A receipt is given after payment. It shows what was paid, when, and for what. If you gave a deposit, a receipt for the deposit is useful, and the final invoice then shows it as already paid.
Putting them in order
A typical job runs: estimate or quote, agreement, work, invoice, payment, receipt. This site has a tool for each: invoice, receipt, quote and estimate. Use the same layout so your documents look consistent.
Questions
- Can I turn a quote into an invoice?
- Yes. Copy the lines from the quote into a new invoice and add the invoice number, date and terms.
- Do I need to give a receipt if I sent an invoice?
- It depends on the client and where you are. A paid invoice marked as paid often serves, but some clients ask for a receipt. It costs nothing to provide one.
Ready to make one? Open the free invoice generator. No signup.
This is general information, not tax or legal advice. Rules differ by place; check with an accountant or your local tax office.