It is common practice to convert an estimate into an invoice. However, one should adopt smart and digital concepts like accounting software to perform this task. It reduces bookkeeping time and saves labor costs while preventing manual data entry.
How to create an invoice from an estimate? Do you want to figure out the answer? Then read our words till you read the end. Here, we will guide you on the correct method and the difference between invoice and estimate.
Key Insights
- An estimate should only be converted to an invoice when it is acceptable to the customer.
- It’s good practice to check the accepted or pending status of an estimate before conversion.
- Always highlight the changes in an invoice when they occur during the customer’s acceptance of an estimate and invoice creation.
- Professionals can copy the information or utilize accounting software to create an invoice.
How to Create an Invoice From an Estimate With Moon Invoice?
Creating invoices from estimates is a handy process when utilizing accounting software like Moon Invoice. However, you must check the status of an estimate before conversion.
There are different strategies to convert an estimate into an invoice, which are as follows:
1. Duplicating the Information
This method is easy and quick. The invoice will be ready within a second while performing a few clicks.
You can get an invoice from an estimate through the following steps:
- Log in to Moon Invoice
- Navigate to the “Sales” section and click “Estimate”
- Click on the three dots and then under the “Duplicate” option, click “As Invoice”
- The estimate will automatically be duplicated to the invoice
Once you have converted the estimate to an invoice, go to the invoices section and check the converted invoice. Further, you can either save it or send it to your client.
2. Creating a Manual Invoice
The other method of creating an invoice is using a manual approach. In this, you only need to copy the information of your estimate to the invoice template. You can explore 66+ personalized invoice templates in PDF, Word, Excel, Google Sheets, and Docs format. You can easily copy all the essential details like line items, their cost, and client details.
3. Customize the Invoice
Copying the information is not the complete story of converting an estimate to an invoice. You need to change the following information:
- Changing of date (make it today’s date)
- Estimate number will be an invoice number
- Mention the due date and payment terms while removing the estimate terms
- Remove the project completion date
- Review the sales tax, line item cost, and total amount
The above information will be changed. However, your business name & client’s name, contact number of both parties and logo will remain the same. Similarly, the services and costs will also remain the same.
A Journey from Estimate to an Invoice
Try Moon Invoice, the easiest way to create an invoice from an estimate.
Difference Between an Invoice and an Estimate
So far, we have covered how to convert a quote into an invoice. Let’s uncover the key points that define the difference between an invoice and an estimate. An invoice and an estimate are two non-identical financial documents.
What Is Invoice?
An invoice is an official document that business professionals issue and share with clients to request payment corresponding to a service or product rendered.
What Is an Estimate?
An estimate provides an approximate cost based on the services or products offered. Its purpose is to showcase the estimated investment.
| Invoice | Estimate |
|---|---|
| An invoice is a formal document that is issued by a business professional to the client for urging the due payment. | An estimate is a quote that business owners release and share with the client to showcase the estimated price of the product or service. |
| An invoice is released after accepting an estimate. | An estimate is shared with the client before sharing an invoice. |
| It has details like invoice number, invoice date, and due date. | It has details like estimate number and estimate issue date. |
| It covers the total due amount. | It covers the total amount which can be changed. |
| Invoice can include payment terms. | Estimates can include descriptions of what you are providing. |
Conclusion
Creating an invoice from an estimate becomes simple when you utilize the right invoicing software. It speeds up the conversion process, ensures accurate records, and saves time that can be used for other important tasks. However, professionals must be aware of a few things.
Frequently Asked Questions
Jayanti Katariya is the founder & CEO of Moon Invoice, with over a decade of experience in developing SaaS products and the fintech industry. He holds a degree in engineering. Since 2011, Jayanti's expertise has helped thousands of businesses, from small startups to large enterprises, streamline invoicing, estimation, and accounting operations. His vision is to deliver top-tier financial solutions globally, ensuring efficient financial management for all business owners.
