Quotes, pro forma invoices and invoices are often mixed up, and each has a different purpose. Here is a simple explanation of when to use which document and how to connect them so you never type anything twice.
In short
- A quote proposes the work and price before the client has agreed.
- A pro forma asks for payment up front and is not an accounting document.
- An invoice records completed work or a payment received.
- The fastest way is to turn the accepted quote into an invoice.
Quote
A quote is your proposal: what you will do, for how much and on what terms. You send it before the job is agreed. It has a validity period and, once the client accepts it (ideally with a signature), it becomes the basis of the agreement.
Example: a quote for tiling a 6 m² bathroom, valid for 15 days.
Pro forma invoice
A pro forma invoice asks for payment before delivery or before work starts. The client uses it to make the payment, but by itself it is not an invoice and is not recorded as income.
It is used, for example, when the client wants to pay before goods are ordered.
Advance invoice
When you receive a payment up front, an advance invoice is issued instead of or after the pro forma. It is recorded and later deducted from the final invoice. Read more in our article on advance invoices.
Invoice
An invoice records completed work or a delivery. The client pays on the basis of it, and you record it as income. It must contain all the details required by the rules in your country.
How to connect them without retyping
The most common mistake is writing the quote in Word and the invoice in Excel, so everything is typed twice. When documents are connected, the flow looks like this:
- you send the quote,
- the client signs it on their phone,
- you create an advance invoice from the quote,
- when the job is done you issue the final invoice and the advance is deducted automatically.
In AdBooks that is a few clicks, without retyping any items.
Frequently asked questions
Is a quote binding?
A quote is a proposal. Once the client accepts it, especially with a signature, it becomes the basis of the agreement within its validity period.
Is a pro forma the same as an invoice?
No. A pro forma is for paying up front and is not recorded as an invoice. For a payment received, you issue an advance invoice.
Can I turn a quote into an invoice?
Yes. In AdBooks you turn an accepted quote into an advance or final invoice with one click.