Many businesses use “quote” and “estimate” as if they meant the same thing. To your client they often do not. Getting the wording right avoids disputes and protects your profit. This is general information, not legal advice.
The difference
- A quote (or quotation) is a fixed price for defined work. If the client accepts it, you are generally expected to do the work for that price.
- An estimate is your best guess. The final cost may be higher or lower, and you should say how much it may change.
When to use each
- Use a quote when the scope is clear and you can control the cost.
- Use an estimate when the work is uncertain, for example repairs where you do not yet know what you will find.
What a good quote includes
- Your details and the client’s details, a quote number and the date.
- A clear description of the work, and what is not included.
- The price, with VAT shown separately if you are registered.
- How long the price is valid, for example 30 days.
- Payment terms and any deposit.
- Timing: when you can start and how long it should take.
- How changes will be handled and priced.
What to add to an estimate
- The word “estimate” clearly shown.
- A range, or an agreed limit above which the client must approve extra cost.
- What could make the cost change.
After the client says yes
- Get acceptance in writing: an email reply is usually enough.
- Take a deposit if the work is large.
- Do the work and keep records of any agreed changes.
- Send an invoice that matches the quote, and quote the same reference.
Common mistakes
- Calling a rough guess a quote.
- Leaving out what is excluded.
- No expiry date, so a client can accept a year later.
- Not noting agreed changes in writing.
How AvrioBooks helps
Create quotations in the Sales menu, send them to your client, and raise the matching invoice when the work is done. See quotes and estimates software and our complete invoicing guide.
Frequently asked questions
What is the difference between a quote and an estimate?
A quote is a fixed price for defined work. An estimate is a best guess that may change.
How long should a quote be valid?
Commonly 14 to 30 days, but choose a period that suits how quickly your costs can change, and state it clearly.
Is a quote legally binding?
Once the client accepts it, a quote can form a contract. Get acceptance in writing and take advice if the sums are large.
Should I show VAT on a quote?
If you are VAT registered, show VAT separately so the client sees the net price, the VAT and the total.
Keep reading
What is double-entry bookkeeping? A plain-English guide
Every business transaction affects two accounts. Here is how double-entry works, with simple examples.
29 October 2026 · 7 min read
Bank feeds vs statement imports: which is better for a small business?
There are two ways to get bank data into your books. Neither is always better, so here is how to choose.
29 October 2026 · 6 min read
How to read a balance sheet: a small business guide
The balance sheet is a snapshot of the business on one day. Here is how to read it without an accounting degree.
28 October 2026 · 6 min read