Invoice vs quote
A factual comparison of an invoice and a quote: their purpose, timing and place in a small-business workflow.
What is an invoice?
An invoice is a numbered request for payment for goods or services supplied. It states the amount owed, issue date, due date and payment instructions.
What is a quote?
A quote offers specified work or goods at a stated price before the customer commits. It normally defines scope, exclusions and how long the offer remains open.
Key differences
| Point | an invoice | a quote |
|---|---|---|
| Timing | After or during supply | Before commitment |
| Purpose | Requests payment | Offers scope and price |
| Key date | Payment due date | Quote expiry date |
When should you use an invoice?
Use an invoice when a billing event has occurred: completion, delivery, a milestone or an agreed recurring date.
When should you use a quote?
Use a quote before work starts when the scope and price are sufficiently clear for you to make a firm offer.
Example
A plumber quotes 1,450 for a defined replacement, valid for 14 days. After the accepted work is completed, the plumber invoices the agreed 1,450 with a payment due date.
Can one replace the other?
No. Accepting a quote may form the commercial basis for work, but it does not tell the customer that payment is now due. Convert the accepted details into an invoice at the agreed billing point.