Estimates & Quotes
Send a quote before the work starts and convert it to an invoice when the customer accepts. Estimates don't post to your books.
An estimate (a quote) is a priced proposal you send before the work is agreed. It converts into an invoice but never posts to your books on its own.
From quote to invoice
- Build the estimate
Add line items, quantities and prices as you would on an invoice. Pick items from Products & services so prices stay consistent.
- Send it
The customer gets a Review & approve link to accept or decline online, and you're notified either way. Nothing posts.
- Convert when accepted
Converting creates an invoice with the same lines. The invoice is what posts.
Why an estimate posts nothing
Under accrual accounting, revenue is recognized when it's earned, by delivering goods or performing a service. A quote is only an offer. If it posted, your revenue and receivables would include work you may never do.
When you convert, the invoice debits accounts receivable and credits revenue. The estimate stays on file as a record of what you quoted.
Good to know
- Estimates are their own record type, not an invoice status, so an unaccepted quote can't be counted as revenue.
- A declined or expired estimate needs no reversal. It never entered the books.
- If the agreed scope changed, edit the invoice after converting.
Common questions
- Does an estimate affect my sales tax?
- No. Sales tax becomes a liability when the sale is invoiced.
- Can I see which quotes turned into work?
- Yes. The Accepted view lists accepted estimates, and a converted estimate links to its invoice.