As a freelancer or small business owner, you'll be dealing with three key documents: the quotation (or estimate), the invoice, and the receipt. Using them in the wrong order can confuse clients and delay projects. Here’s a simple guide to what they are and when to use them.
1. The Quotation (or Estimate): The "Before" Document
A quotation is a document you send *before* any work begins. Its purpose is to propose a price and get the client's approval.
- What it is: A formal offer or bid for a project.
- When to use it: Send it to a potential client to outline the scope of work and the estimated cost.
- Key Features: It should include a "Valid Until" date (e.g., "This price is valid for 30 days") and clear "Terms & Conditions" (e.g., "Includes two rounds of revisions").
- The Goal: To get the client to say "Yes, let's start!"
You can use our Quotation Generator to create a professional-looking quote in minutes.
2. The Invoice: The "During" or "End" Document
An invoice is a formal request for payment *after* you have delivered a product or service.
A quotation is a question ("Will you pay this?"). An invoice is a statement ("You now owe this.").
- What it is: A bill. A formal record of a sale and a request for the money owed.
- When to use it: Send it after the work is complete, or at agreed-upon milestones (e.g., 50% upfront).
- Key Features: It *must* have a unique Invoice Number, an Invoice Date, and a Payment Due Date.
- The Goal: To get paid for your work.
3. The Receipt: The "After" Document
A receipt is a proof of payment. It's the document you send *after* the client has paid your invoice.
- What it is: Proof of purchase.
- When to use it: Send it immediately after you have received and confirmed the payment.
- Key Features: It should clearly state "PAID" or "Receipt," reference the original Invoice Number, and show a zero balance due.
- The Goal: To close the loop and provide both you and your client with a final record.
Understanding this simple workflow (Quote → Invoice → Receipt) makes you look organized, professional, and trustworthy to your clients.