Guide · Estimates
Estimate vs invoice
An estimate asks "do you want this done for this price?" An invoice says "it's done; here's what you owe."
An estimate is the price you give before the work, for the customer to approve. An invoice is the bill you send after the work (or at a stage of it) asking to be paid. The estimate shows scope, line items, the total, any deposit, and how long the price is good for. The invoice shows the same work as done, the amount due, the due date and how to pay. The cleanest setup is to turn the approved estimate into the invoice, so the numbers match what the customer agreed to.
Side by side
| Estimate | Invoice | |
|---|---|---|
| When | Before the work | After the work, or at a stage |
| Purpose | Get approval for scope and price | Get paid |
| Key fields | Scope, line items, total, deposit, valid-until date, exclusions | Invoice number, work done, amount due, due date, payment options |
| Customer action | Approve or sign | Pay |
| Changes | Revise and re-send before approval | Should match the approved estimate plus signed change orders |
Is an estimate binding?
An estimate the customer has approved or signed is usually treated as the agreement on price and scope. That's why the exclusions and assumptions on it matter. If the job changes, write a change order rather than surprising the customer on the invoice. Some states have specific rules for home improvement contracts, so check yours.
Should the invoice match the estimate?
Yes, plus any signed changes. If the invoice is higher than the approved estimate without a written change, expect a phone call. Many contractors convert the approved estimate straight into the invoice so nothing gets retyped.
In Settle
The customer approves the estimate from a link, and Settle records it. When the job's done, "Convert to invoice" copies the approved lines into a new invoice due in 7 days, which you can change, and you send it from your phone with a pay link.
What comes first, the estimate or the invoice?
The estimate. It's the price before work starts; the invoice is the bill afterward.
Can an estimate be used as an invoice?
Not as-is. An invoice needs an invoice number, a due date and the amount owed. Converting the approved estimate keeps the same lines and adds those.
What if the final cost is more than the estimate?
Get the extra approved in writing before doing it, with a change order. Then the invoice is the estimate plus the approved changes.
Turn your next approved estimate into an invoice with one tap.
Free on iPhone. Unlimited estimates and invoices. 7 days of Pro to try the voice drafts, and you cancel in two taps.
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