Estimate vs invoice: what is the difference?
Published
An estimate says what a job should cost before the work. An invoice asks for payment for work that was agreed or done. Mixing the two up causes confusion, so keep the documents clear and separate.
The short version
An estimate is sent before the work. It describes the scope and the expected price, and the customer can accept it or not.
An invoice is sent when payment is due. It lists what is being charged and states how and when to pay.
What an estimate contains
- Your business name and contact details
- The customer's name and the job address
- A description of the scope and anything that is excluded
- Itemized labor and materials with quantities and prices
- Discounts, tax and the total
- How long the estimate is valid and the main terms
What an invoice contains
- Your business name and contact details
- The customer's name
- A unique invoice number and the issue date
- Itemized lines, discounts, tax and the total
- Payment instructions, such as bank details, and the due date
Invoice requirements such as mandatory fields, numbering and tax wording differ by country. Check the rules that apply to your business.
Quote or estimate?
Some trades and regions use the words differently. A quote often means a fixed price, while an estimate can be an approximation that may change. Whatever you call it, write down whether the price is fixed and what happens if the scope changes.
Keep the totals identical
When a customer accepts an estimate, the invoice should match it, so nobody is surprised. If the scope changes, show the extra work as separate lines so the customer can see what changed and why.
Who tracks the payment?
In SiteReporta you mark an estimate as accepted and convert it to an invoice with identical totals, then add your bank details to the PDF. It does not take payments or track whether an invoice was paid, so keep your own record of what has been paid. The support page explains how it handles tax and payments.
Next: how to write a contractor estimate.
General guidance, not legal, tax or accounting advice. Rules differ by country and trade.