What a quote is — and how it differs from an invoice
A quote (or quotation) is an offer: it tells a client what a defined piece of work will cost, before you do it. An invoice is the opposite end of the job — it requests payment for work already delivered. The two look similar, but they do different jobs, and sending the wrong one at the wrong time either confuses the client or leaves you unpaid.
The headline differences: a quote carries a validity period ("valid for 30 days") rather than a payment due date, it usually needs the client to accept it before anything is binding, and it is explicitly not a tax invoice. An invoice, by contrast, has a unique invoice number, payment terms, a due date, and your tax treatment.
Fixed quote vs estimate
Decide which you are sending. A fixed quote is a firm price for clearly defined work — once accepted, you are expected to honour it. An estimate is an approximate figure for work that is not fully scoped, and the final cost can change. Label whichever you send so the client knows whether the number is locked or indicative.
Quote a fixed price when you understand the job well enough to price it confidently. Estimate when there are real unknowns, and say what could move the figure. Calling a guess a quote can cost you money; calling a firm price an estimate invites the client to push it down later.
Validity, deposits, and change orders
Give every quote an expiry. Your costs and availability change, so 14 to 30 days is normal — after that you reserve the right to re-price. State it on the document.
For larger jobs, ask for a deposit to cover up-front work or materials, and write a simple change rule: anything outside the listed scope is priced and approved before it is done. Those two lines protect your margin more than anything else on the page.
Acceptance and signatures
A quote usually works as a commercial offer; if the client accepts it and the essential terms are clear, it will usually form the agreed price and scope, subject to local contract and consumer-law rules. Until acceptance, either side can walk away.
An e-signature or typed approval is usually enough for ordinary commercial jobs, provided local law and the contract do not require a specific form, witness, or wet-ink signature. Keep a dated record of the acceptance.
From accepted quote to invoice
Once the work is done, use the accepted quote as the basis for a separate invoice or tax invoice. For deposits, progress payments, or retainers, issue the required invoice and account for VAT/GST/HST/sales tax under local timing rules. Reference the original quote number on the invoice — it helps the client's accounts team match the bill to what they approved.
The practical switch is small: change the heading from "Quote" to "Invoice", swap "Valid Until" for a payment due date, add a fresh invoice number, and apply your tax treatment. Our free invoice generator produces the matching invoice.
Tax on a quote
A quote can show estimated tax (VAT, GST, HST, or sales tax) so the client sees the likely total, but it is a commercial offer, not a tax invoice or sales-tax document — it does not by itself create a reporting point. If you display tax, mark it as estimated or indicative so it is not mistaken for a tax invoice.
Rates and thresholds differ by country and can change, and deposits or advance payments can affect when tax is due — confirm the treatment that applies to your work with your tax authority or an accountant.