A quotation is an offer: it tells the client what the work will cost before they commit and expires after a set period. An invoice is a request for payment issued after (or during) the work. A pro forma invoice sits between the two: it looks like an invoice but is not a demand for payment and is not a tax invoice.
At a glance
| Quotation | Pro forma invoice | Invoice | |
|---|---|---|---|
| Purpose | Offer a price | Preview the final bill | Request payment |
| When | Before the work | Before delivery or payment | After or during the work |
| Binding on you? | Yes, until it expires | No | Yes |
| Creates a debt? | No | No | Yes |
| Tax invoice for VAT? | No | No | Yes, if VAT registered |
| Numbering | QUO series | Optional | INV series, sequential |
What a good quotation includes
- Your details and the client's details.
- A quotation number and the date.
- A validity period (14 or 30 days is typical) after which prices may change.
- Itemised lines with quantities and unit prices, plus VAT if applicable.
- Assumptions and exclusions: what is not included, travel, revisions, materials.
- Payment terms you will apply once the work is accepted, including any deposit.
Turning a quotation into an invoice
Once the client accepts, the invoice should mirror the quotation line for line so there is nothing to argue about. Retyping introduces errors; InvoiceWriteNow converts an accepted quotation into an invoice in one click, keeps the link between the two documents and marks the quotation as converted so it cannot be invoiced twice.
Deposits and progress invoices
For larger jobs, invoice a deposit (30% to 50% is common in trades and creative work) against the accepted quotation, then invoice the balance on completion. Each invoice references the quotation number. Never treat the quotation itself as the request for the deposit.
When to use a pro forma
Pro formas are useful when a client needs a document to raise a purchase order or approve payment before you can legally issue a tax invoice, for example when the goods have not been supplied yet. Read what is a pro forma invoice for the details.
Quotations that become invoices in one click.
Start for free