Invoice vs receipt vs quote vs estimate: which document when
A quote offers a price, an invoice asks for payment and a receipt proves it was paid. What each document is for, what goes on it, and where pro forma invoices fit.
Published
Tools for this job: Invoice Generator · Tax Calculator
Freelancers and small businesses send several kinds of money document, and clients sometimes ask for the wrong one: “Can you send me an invoice?” when the work has not been agreed, or “I need a receipt” when the bill is still unpaid. Each document has a specific job.
The documents in order
| Document | Sent | Says |
|---|---|---|
| Estimate | Before work | Roughly what it will cost |
| Quote | Before work | Exactly what it will cost |
| Pro forma invoice | Before payment | What the invoice will be |
| Invoice | After delivery | Please pay this amount |
| Receipt | After payment | This amount was paid |
Estimate and quote
An estimate is a best guess, useful when the work is uncertain, such as repairs where the problem is not yet known. A quote is a fixed price for a defined job; once the client accepts it, you are normally expected to keep to it. Put a validity period on quotes (“valid for 30 days”), describe exactly what is included and what is not, and say how extra work will be charged.
Pro forma invoice
A pro forma invoice looks like an invoice but is a preview. It is used to request payment in advance, to let a client raise a purchase order, or for customs with international shipments. It is usually not a tax invoice, so do not record it as a sale. When the goods ship or the work is done, issue the real invoice.
Invoice
An invoice is a formal request for payment and a record of the sale. It should include:
- Your name or business, address and contact details, and the client's.
- A unique invoice number and the issue date.
- What was supplied, quantities, prices and the total.
- Tax, if you are registered for it, with your tax number.
- The due date and how to pay.
The Invoice Generator builds one with line items, discount, tax and notes, and exports a real PDF. For what makes an invoice get paid on time, see how to make an invoice.
Receipt
A receipt confirms payment. It shows what was paid, how much, when, and by what method. Many small businesses issue a receipt by sending the invoice again marked as paid, for example with a note such as “Paid in full on 3 October 2026 by bank transfer. Thank you.” in the Invoice Generator's notes field. That is often all a client needs for their records.
Credit notes
If an invoice was wrong or goods are returned, do not delete or edit the invoice. Issue a credit note that reduces or cancels it, with its own number, and send a new invoice if needed. Accountants and tax authorities expect the trail to be complete.
Tax amounts on every document
If you charge VAT, GST or sales tax, show prices before tax, the tax amount and the total on quotes and invoices alike, so nothing changes between them. The Tax Calculator adds or removes tax at common rates. For numbering, see how to number invoices.