Invoice vs Quotation: What's the Difference?

Many small businesses use the words "invoice" and "quotation" interchangeably, but they serve different purposes.

A quotation comes first

A quotation (or quote) is an offer. You send it before the work to tell a customer how much something will cost. It usually has a "valid until" date because prices can change.

An invoice comes after

An invoice is a request for payment. You send it after the customer agrees, or after the work is done. It typically includes a due date and payment terms.

Quick comparison

• Quotation — estimate, sent before work, has a validity date.
• Invoice — request for payment, sent after agreement, has a due date.

You can create both for free: try the quotation generator and the invoice generator.