We are in the digital age, where you can find anything online. If you are looking for solutions to anything freelancing, your first stop is most likely the internet. So, when your client asked you for a quotation, you checked online. Or, you were looking for ways to impress clients, and you found that a quotation is one of them. However, you probably got a little confused when you saw the interchangeable use of quotes and invoices.
So you are wondering, what is an online quote template? What is an invoice template? While quotations and invoices are often used to refer to the same document due to their similarities. The two documents are different. You need to know these differences to know which template you need.
There are lots of freelancers who use the same template for their quotations and invoices. While you can do this if you know what elements to omit or add in a quote that shouldn’t be in an invoice, it can become a costly error if you don’t know the differences. At the very least, you might lose your client as he will think that you do not have adequate knowledge of what you are doing.
Therefore, you must know what distinguishes an online quote template from an invoice. So, what are the differences? Some of the features that you should watch out for are:
An online quote template helps you list out all the services you offer and their corresponding prices. An invoice, however, contains specific details about unpaid services rendered. Your quotation should also include a quote number. This number is different from the tracking number that you see in invoices. The phrases’ quote number’ or ‘quote #’ are used to indicate this feature.
2. Legal authority
A quote is not a legally binding document. It is subject to changes, negotiations, and bargains. On the other hand, an invoice is a legal document that is not subject to altercations and is non-negotiable. You can tender it in any court in the case of a dispute.
You use an online quote template to give your client a clue into the price of your services. The price you fill in the template is not usually final, and your client can still negotiate. However, an invoice is used to demand the payment for services you have already rendered. It states the work you have done and makes it easier for you to get paid.
4. Time issued
It would be best if you had a quotation before you perform the service. However, you send an invoice after you have done the job, and your client has gotten his service. An online quote template would also contain an expiration date, usually introduced with ‘Valid until Date.’ After this date passes, the prices in the quote will no longer be valid. However, while an invoice will contain a time of issuance, it does not expire.
5. Mode of issuance
You can make your quotation known to your clients verbally or in written form. Though, it is best to use the written form and use a downloadable online quote template. It makes it easier for your client to refer back to and reduces the chances of disputes overestimated price. However, you don’t have the choice of verbal issuance when it comes to an invoice. It always has to be in the written form.
Your quote template and invoice might have lots of similar information on them, but it is clear that they serve different purposes. When you go looking for an editable online quote template to use for your quotations, ensure that the template is for quotes and not invoices. You should also ensure that the template works for the type of services you offer.