What to include on a quote
- A quote number, the date and a valid-until date
- Your details and the customer's
- The scope in plain words, including what's excluded
- Each item with quantity, unit price and line total
- Sales tax, if the sale is taxable
- The total, any deposit and your payment terms
- How to accept: a signature and date, or a written reply
Keep the scope specific. “Rebuild website” invites argument; “design 6 page templates and migrate up to 30 pages” doesn't.
How long should a quote be valid?
Thirty days is a common default. Use a shorter window, 7 to 14 days, when your own costs move quickly, as lumber, copper and freight prices can. Once the date passes you can honor the price or re-quote, and either way the customer knows where they stand.
Quote, estimate or proforma?
A quote is a fixed price for a defined scope. If you can't commit to a number yet, send an estimate, which is an approximation. A proforma invoice usually comes after the deal is agreed, when the buyer needs an invoice-style document to arrange payment or import paperwork. When the work is done, the accepted quote becomes an invoice.
When the scope changes
Don't edit a quote the customer has already accepted. Issue a revised quote with a suffix, such as QT-0217-R2, or a separate quote for the extra work, and get approval in writing before you start. The final invoice is then easy to justify line by line. Deposit and payment options are covered in the payment terms guide.
Frequently asked questions
Is a quote legally binding?
Once the customer accepts it, a quote usually becomes the basis of your agreement, so expect to be held to the price for the scope described. A validity date, a list of exclusions and a change process limit that exposure. For large contracts, have a lawyer review your terms.
Can I turn a quote into an invoice?
Yes. When the customer accepts, convert the quote into an invoice in one click. The client details, line items and prices carry over; check the invoice number, dates and payment terms, adjust anything that changed, and download it.
Should I ask for a deposit?
For jobs with material costs or long lead times, many businesses ask for 25 to 50 percent on acceptance. Put the amount and due date on the quote. Some states cap deposits on home improvement contracts, so check your state's rules if you work on homes.
Should a quote include sales tax?
Yes, if the sale is taxable. Showing tax on the quote means the total your customer approves matches the invoice they receive. Which goods and services are taxable, and at what rate, varies by state, so check with your state revenue department.
How should I number quotes?
Use a series separate from your invoices, such as QT-0001, and keep the number when you revise, adding a suffix like -R2. The invoice can then reference the accepted quote number, which helps the client's accounts team match the two.