An estimate in a service business approximates the cost or time required to complete a specific service. It is essentially a quote or proposal to a client outlining the expected charges and scope of work for the service provided. Estimates are typically based on factors such as the complexity and duration of the job, the required resources and materials, equipment, and overhead expenses. They serve as a way to communicate the expected cost and timeline to the client, allowing them to make an informed decision before committing to the service. Software solutions with estimate functions like RemOnline can help streamline and automate the estimation process, saving time and ensuring accuracy in the pricing of jobs for clients.

A quote is a written statement that provides a fixed price for a specific product or service. Businesses typically provide it to a prospective customer, and is considered a formal offer of goods or services at a specified price. Quotes for products and services are binding and should accurately reflect their cost. On the other hand, an estimate approximates the cost that a business provides to a customer. Unlike a quote, an estimate is not a fixed price but rather an educated guess based on available information. It is often used when the final cost is not precisely determined, such as in complex services. Estimates may change as more information becomes available, and they do not legally bind the business to provide the product or service at the estimated price.

No, an estimate is not the same as an invoice. An estimate is a document that provides a projected cost of a product or service before it is provided to the customer. It is essentially a rough calculation or approximation of the total expenses involved. On the other hand, an invoice is a document sent to the customer after the product or service has been provided, requesting payment for the agreed-upon amount. An invoice includes specific details such as the quantity, description, and cost of the goods or services provided, along with any applicable taxes or discounts. While an estimate is just an initial cost estimate, an invoice is a formal request for payment based on the actual goods or services delivered.

Quotes for products and services get handled like work orders but without causing a change in stock levels and payroll calculation numbers. You can generate an unlimited number of detailed estimates, modify individual line items, and add out-of-stock products from product catalogs to order them later. Once approved, an estimate becomes a work order you can process immediately without re-entering all the details.