Quote vs Invoice

Agree the job first. Ask for payment second.

A quote tells a prospective customer what you will provide, what it will cost and how long the offer stands. An invoice records what was supplied and asks the customer to pay. The important legal point is timing: an accepted quote can become a binding contract, while the invoice should reflect the price and terms already agreed.

Plain-English comparison · AU and US terminology · Free tools for both documents

The short answer — Quote before acceptance and work; invoice after the sale or at an agreed billing milestone. Convert the accepted quote instead of retyping it, so scope, line items and pricing stay consistent.

What you get

Purpose

A quote offers to supply defined work or goods at stated prices. An invoice documents the sale and requests payment under the agreed terms.

Timing

Send the quote before the customer commits. Send the invoice after delivery, completion, a contractual milestone or another agreed billing trigger.

Legal effect

A quote is an offer; once the customer accepts it, the quote and acceptance can form a binding contract. An invoice normally records and bills under that agreement rather than changing it.

Key fields

Quotes emphasise scope, exclusions, validity and acceptance. Invoices emphasise invoice number, issue and due dates, tax, amount owed and payment instructions.

Changes

Revise the quote and obtain acceptance when scope or pricing changes before work. Do not surprise the customer with unexplained extras on the invoice.

Accounting status

An unaccepted quote is not a sale or amount receivable. An issued invoice is normally recorded as revenue or accounts receivable according to your accounting method.

How it works

  1. 1

    Prepare the quote

    Define the work, itemise the price, list exclusions, set an expiry date and state the payment terms or deposit.

  2. 2

    Record acceptance

    Get written acceptance or another clear record. In Australia, government small-business guidance states that an accepted quote becomes a legally binding contract.

  3. 3

    Deliver the work

    Follow the accepted scope. Document and agree variations before adding them to the final amount.

  4. 4

    Convert it into an invoice

    Carry the customer, items, agreed price and terms into a numbered invoice. Add the issue date, due date, tax and payment instructions.

  5. 5

    Track payment

    Send the invoice promptly, record when it is paid and issue a receipt if the customer needs proof of payment.

Worked example: quote to invoice

A designer agrees a fixed-price branding job before starting work.

Quote Q-104
$2,000 plus applicable tax for a logo, two revisions and final files; 50% deposit; valid for 14 days.
Acceptance
The customer accepts Q-104 in writing, creating a record of the agreed scope, price and terms.
Deposit invoice
$1,000 plus applicable tax, referencing Q-104 and due before work starts.
Final invoice
The remaining $1,000 plus applicable tax, less the recorded deposit, due on delivery.
Variation
A $450 brand-guide add-on appears only after the customer approves that extra scope and price.

Takeaway: The quote explains what the customer approved; the invoices collect the agreed deposit and balance without silently changing the deal.

Start with the right document

Create the quote while the scope is being agreed, then convert it into an invoice when the work is ready to bill.

Create a free quote

Frequently asked questions

What is the main difference between a quote and an invoice?

A quote is sent before the customer commits and sets out the proposed scope, price and terms. An invoice is sent after the sale, delivery or an agreed milestone and asks for payment. The accepted quote is the agreement; the invoice should bill consistently with it.

Is a quote legally binding?

A quote starts as an offer. In Australia, once the customer accepts it, government small-business guidance says it becomes a legally binding contract. The exact effect can depend on the wording, acceptance and local law, so make scope, exclusions, expiry and variations clear.

Can a quote be used as an invoice?

Not safely. A quote normally lacks the final invoice number, issue and due dates, payment status and any mandatory tax-invoice wording. Convert the accepted quote into a separate invoice so the sales and payment records remain clear.

Can the final invoice be higher than the quote?

Only where the agreement allows it or the customer accepts a variation. If the scope changes, document the change and price before doing the extra work. Adding unexplained charges at invoicing is a common source of disputes.

Should a quote include payment terms?

Yes. Include the required deposit, balance due date, payment method, late-payment terms where permitted, and how variations will be priced. Agreeing them before work is much easier than negotiating them after.

How do I turn a quote into an invoice?

Copy or convert the accepted customer, scope, line items and price, then add the invoice number, issue date, due date, tax and payment instructions. InvoiceSonic lets account users convert a saved quote without retyping it.