Invoices and quotations are two key documents in business transactions, but they serve very different purposes. Understanding their differences helps streamline your billing and client communication processes.
Quotation: A quotation is a document sent to a potential client before the work begins. It specifies the proposed services or products, estimated costs, and terms. Once the client approves, it can later be converted into an invoice.
Invoice: An invoice is issued after goods or services have been delivered. It requests payment and contains details such as the amount due, payment terms, and a record for accounting purposes.
In short, quotations help clients decide whether to proceed, while invoices request payment once work is completed. Both are crucial for smooth business operations and professional client interactions.
"Providing clear quotations and timely invoices not only improves cash flow but also builds trust with your clients."
Using invoicing and quotation tools efficiently ensures accuracy, professionalism, and better financial management for your business.
