There are many tools in business that help you ensure you get paid on time for your work. As an entrepreneur, you should clearly understand how they all work. In this article, we will break down the difference between a quote and an invoice. At first glance, they may look the same, but they actually have different meanings and uses.
What Is a Quote?
A quote is a special form that contains detailed information on products and services and their costs. In it, companies describe the items they can provide at the moment. Such papers can be verbal, but formal documents are better supplied in writing using Invoice Maker by Saldo Apps. Such a file is issued at customers’ request and is a kind of proposal. Externally, a quote template resembles a commercial invoice, but in essence, it is not it.
What is the purpose of a quote? Such a paper is needed so that a client who has requested it could get acquainted with the items a business offers and understand whether such terms and conditions are suitable for them. Of course, they can get such information from different companies and then make a final choice in favor of one of them. That is, the provision of this type of document does not imply that a customer agrees to pay for the goods described.
How to Provide a Quote?
What does getting a quote mean? It means that your potential customers want to get preliminary information about the products and services they are interested in, their cost, available quantity, delivery terms, the period during which your offer is valid, and many other things. This document is usually provided at clients’ request before an order is placed and work on it begins.
The best practices for creating quotes also include providing information about the price of similar products, extra costs in case any work takes longer than planned, and other terms and conditions you adhere to. Never include products or services that you cannot provide. Try to make quotes as detailed as possible so there are no misunderstandings during the process.
What Is an Invoice?
The quotes meaning is very different from an invoice in nature. The fact is that the latter is provided to clients after the work on an order is finished. Their content can either repeat quotes or contain additional information since some positions might be changed during the work, as agreed with clients.
What are invoices used for? They record the fact of order fulfillment and demand payment for it, as well as protect businesses from dishonest customers. An invoice contains an itemized list of all products and services provided, their final quantity, cost, amount to be paid, the deadline for money transfer, contacts of contractor and recipient, and payment methods.
How to Provide an Invoice?
According to best practices for creating invoices, you need to provide such documents right after the work is completed. The sooner you do it, the quicker a client pays. While you can create them by hand, it is best to use modern software like SaldoInvoice. With it, you can write out bills from any device literally on the go. Fill out a template in advance or do it right on the spot and email it to the customer or provide a link. Don’t forget to accompany your file with a polite letter reminding recipients of your payment terms and thanking them for their cooperation.
Quotes and invoices are important files in your paperwork. They help streamline the workflow, build strong customer relationships, and ensure both parties agree to the terms. Apply each such form correctly and at the right time.