Ever Wondered About the Difference Between an Estimate and an Invoice? Read This
The invoice and estimate are two documents which are used in business. An invoice presents the client with details about the products or services that are provided along with their costs. This document is issued after the required goods or services have been delivered. On the other hand, the estimate presents the client with details about the goods and services prior to delivery.
Free Estimate Invoice Template
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What is Invoice and Estimate
Two popularly used documents in business today are estimates and invoices. An invoice is a record of goods and services that are provided to a client after the work is done. It contains details such as descriptions of products, the materials used in delivering the service as well as any resources that were implemented. It also contains the overall cost of work and acts as a request for payment. On the other hand, an estimate invoice is presented to the client before the work is done. This business document contains details about the task and how much it will cost the client to get it done. Hence, it is a preemptive business document.
Differences between Invoice and Estimate
• Time of issuance:
An estimate is issued before the work is performed while an invoice is presented after the task is complete. The estimate is provided upon first interaction between the vendor and the client. On the other hand, the invoice is provided at the last interaction between these parties.
An invoice is a request for payment while an estimate is an indicator of the expected cost of services. The estimate is informational and does not have to be honored while the invoice is procedural and requires to be honored.
An estimate mainly contains information about the products or services that the vendor can provide along with their costs. On the other hand, an invoice contains details about the products or services rendered, their cost and the due date of payment.
How to Create an Estimate Invoice Easier with FreshBooks
What is FreshBooks
FreshBooks is a software that businesses can utilize for accounting purposes. It can assist you to operate your business in a more fluid, efficient and effective way. By using FreshBooks, you can generate invoice documents easily. Furthermore, this digital tool makes it possible to automate business processes such as task scheduling, accounts reporting, organization of expenses and client responses. As such, this software frees up your time and resources so that you can spend them on other business activities such as brand promotion and expansion.Try Freshbooks for Free >>>
This business software has an interface that is easy to use. Its dashboard is well-organized and intuitive. As a result, it has a short learning curve and your staff can easily learn how to implement FreshBooks. Its suite of features and tools are placed such that you can easily access my invoices and estimates deluxe. FreshBooks is built upon Cloud technology. Therefore, you can access the software at any time from anywhere you are and check on my invoices and estimates.
How to Create an Estimate Invoice with FreshBooks
FreshBooks makes it possible to create estimates and invoices free of charge. The software presents you with two main modules for this purpose. They include:
1. The FreshBooks Dashboard
This is one of the methods which you can use to create an estimates invoice. Within it, simply click upon the button labeled “Create New”. Having done so, proceed to select “Invoice”. This will activate a new template screen that you can customize for your estimates invoice.
2. The “Invoices” Panel
Another module that you can utilize to create an invoice is the Invoices Panel. This method requires you to simply tap on a button labeled “New Invoice”. This will immediately bring up a template that you can customize and begin to create a new estimate invoice.
The FreshBooks invoice template is organized into 3 main sections. They include:
This part of the invoice allows you to specify if your document will accept payments made through credit cards.
This section allows you to determine the aesthetic appearance of the invoice. It enables you to pick a color for the headings, the font and also determine if the estimates invoice will be a recurring document.
This part of the template is the most important one. Here, FreshBooks enables you to indicate elements such as the Vendor's Name, Client's Name, Transaction Details, Grand Total and Due Date of the invoice. Hence, it is the most crucial part of the invoice.
Once you have completed customizing the estimates invoice template, you can proceed to Save it. This stores the invoice in pdf format in your computer for further editing. Should you feel that it is sufficient, you can simply Send the estimates invoice directly to your client. FreshBooks delivers the document to the client through email.
FreshBooks is one of the most distinctively beneficial invoice and estimate software today. It can generate documents and also automate processes. It is a great digital investment to make for any enterprise!
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