Quote or invoice: what is the difference?

A quote and an invoice are two different documents that come at two moments in the sales cycle. Confusing them can mislead your clients and distort your accounting. Here is how to tell them apart simply.

What is a quote?

A quote is a price proposal, sent before the work. It describes the job to be done and its estimated cost. It only commits to payment once accepted and signed by the client. A quote is for agreeing before you start.

What is an invoice?

An invoice is a request for payment, issued after the good or service is delivered. It is an accounting and tax document: it must follow the mandatory rules and goes into your VAT return. An invoice is for getting paid.

The main differences

• Timing: the quote comes before, the invoice after the work.
• Legal value: a quote is an offer, an invoice is an accounting record.
• Payment: a quote is not paid, an invoice is.
• VAT: indicative on a quote, due on an invoice.

From quote to invoice, without retyping

Once the quote is accepted, you do not have to start over: the quote becomes the basis for the invoice. With Fatourtk, you create a professional quote, then convert it into an invoice in one click, without re-entering the client or the line items. Start for free, no card required.