Invoicing explained
Invoice vs Estimate
An estimate is a non-binding projection of what a job will cost, sent before the work. An invoice is a formal request for payment, sent after the work is delivered. The estimate helps a client decide; the invoice asks them to pay.
What is invoice?
An invoice is a legal request for payment. It lists the work delivered, the amounts owed, a unique invoice number, the date, and payment terms. It records a completed sale and is what the client pays against.
What is estimate?
An estimate (or quote) is an approximation of cost sent before any work happens. It's not a demand for payment and isn't legally binding — it's there to set expectations and win the job. Once the work is agreed and done, you convert it into an invoice.
Invoice vs Estimate: the key differences
Here's how invoice and estimate differ at a glance:
- Timing — estimate comes before the work; invoice comes after.
- Purpose — estimate helps the client decide; invoice requests payment.
- Binding — an estimate is a projection; an invoice records an amount legally owed.
- Numbering — invoices carry a unique invoice number for your records and tax.
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Frequently asked questions
What is the difference between invoice and estimate?
An estimate is a non-binding projection of what a job will cost, sent before the work. An invoice is a formal request for payment, sent after the work is delivered. The estimate helps a client decide; the invoice asks them to pay.
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