Use an estimate before the scope is settled
An estimate describes the proposed work and its expected price. Use one when a customer needs to review your services, compare options or approve a budget before you begin. Identify the deliverables, quantities, prices and assumptions that could change the amount.
For example, a consultant might estimate two discovery sessions at $150 each and a written recommendations report at $400. The proposed subtotal is $700. The estimate should also explain what the report covers and whether additional sessions are included.
Label the document clearly as an estimate. If the price depends on an inspection or further information, say what needs to be confirmed. The effect of an accepted estimate depends on its wording and the agreement with the client; a local adviser can help you set terms for your business.
Use an invoice when you are requesting a payment
An invoice identifies an amount you are asking the customer to pay. Depending on your agreed terms, you might issue it for a deposit before work, a completed milestone or the final balance.
Include your business and customer details, a unique document number, a clear description of the work, quantities and prices, any applicable tax, the total, a due date and payment instructions. Make it easy to see what is being charged and what the customer should do next.
Sending an invoice does not show that it has been paid. Record payment only after you can match the money received to the invoice.
Compare the two documents using one project
Suppose a cleaning business proposes a move-out clean for $320, with an optional appliance clean for $60. The estimate separates those lines so the customer can choose the scope before booking.
If the customer accepts both, the agreed subtotal is $380. The business can issue an invoice for that agreed work at the time set in its payment terms. If the customer later asks for another service, confirm the added scope and price before including it on the final invoice.
- Estimate question: What work are we proposing, at what expected price?
- Invoice question: What agreed amount is due, when is it due and how can it be paid?
- Payment record question: What has actually been received against that amount?
Keep the handoff from approval to billing clear
Before turning an estimate into an invoice, compare it with the customer's approval and the work you are billing. Check optional items, quantities, tax, deposits and any changes made after the original proposal.
Keep the estimate as the record of the proposal. Give the invoice its own number and payment terms. If you issue a deposit invoice, clearly identify it as a deposit for the agreed service so you can reconcile it with the balance later.
Hi [name], thanks for approving estimate [estimate number] for [scope]. I have attached invoice [invoice number] for [deposit / milestone / completed work]. The amount due is [amount], payable by [date] using [payment method]. Please reply if any detail needs clarification.
Put the workflow into practice
In DetailSprout, select a client, create an estimate and add services from your catalog or enter custom line items. Review the document, share it and track its status. When it is time to bill, convert the estimate to an invoice and check the amount and due date before issuing it.
You can print or save a PDF to share yourself. Email delivery and online card payment links have their own setup requirements. A reminder is a reviewed action you choose to send, rather than an automatic consequence of creating a document.