Step-by-Step Guide to Convert an Estimate to an Invoice

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📝Key Takeaways:

  • From this blog, you will learn a step-by-step guide to create an estimate
  • Best practices to follow to convert an estimate to an invoice

Generating an accurate estimate is integral to every business. Estimates help customers in deciding whether they want to engage with your business or not.

Therefore, estimates should be professional and precise. While generating an estimate, you should consider various factors, like work conditions, expenditure on materials, labor costs, availability of field technicians, direct work costs, and overhead expenses.

An invoice also plays an equally important role in running a successful business. It helps you realize your payments with ease.

A professional invoice can lay a strong foundation for small businesses. If your customer accepts your estimate, converting it into an invoice is smart and efficient.

Even though you can generate professional estimates and invoices within minutes using invoicing software like InvoiceOwl, you can save even more time and energy by simply converting an estimate into an invoice.

Here is an all-encompassing guide that will be helpful for you to convert your approved estimate into an invoice so that you can save time.

Steps to Convert Estimate to an Invoice

For converting an estimate into an invoice, you must first prepare an estimate. Here are the following ways in which you can create an estimate:

Step. 1) Install estimating and invoicing software like InvoiceOwl

Generating a professional estimate is pertinent to convert a potential client into a real customer. However, generating an accurate estimate can take up a lot of time and energy.

Install estimating and invoicing software like invoiceowl

It is here that accounting software like InvoiceOwl steps in. It allows for generating professional estimates, invoicing, storing customer data, and more.

It also assists you in staying organized by providing services like e-sign, preparing purchase orders, getting real-time notifications, and generating a report.

Moreover, InvoiceOwl assists you in getting paid faster by giving you the option of creating and sending invoices, facilitating online payment, and generating credit memos.

Dealing With Manual Estimates and Invoices?

InvoiceOwl is here to help you automate your estimates and invoices tasks in just a minute. Ready to Try InvoiceOwl?

Step. 2) Set up your company account

You can set up your account with InvoiceOwl in a few easy steps. Fill out relevant details like company name, address, website URL, etc.

Set up your company account

Choose the industry your business belongs to from the drop-down menu. Once you have entered the industry name, InvoiceOwl creates a sample estimate for you.

It allows you to personalize your document according to your company preferences. You can add your logo, registered trademarks, watermark, and color combination and format it as you like.

Step. 3) Design an estimate in minutes

InvoiceOwl gives you the option of personalizing every element from start to finish. You can create estimates in six easy steps.

Design an estimate in minutes

Firstly, upload your logo or choose from the predefined logos. Secondly, InvoiceOwl provides you with various templates to format your estimate. The third step requires you to add any additional information about your business.

Fourthly, choose the color combination of your estimate. Fifthly, pick a banner, leave the backdrop blank, and put your watermark.

Save your design and move forward!

Step. 4) Fill in the tax information

For creating an accurate estimate, you need to mention whether your services are taxable or not. If yes, what is the tax percentage levied on those services, and whether the tax is inclusive or exclusive?

Step. 5) Send the estimates to your customers

Now that you have created a fully personalized estimate, you can send it to your customer directly.

One of the biggest advantages of using InvoiceOwl is that you can send the created estimate to your customer straight away without having to save it anywhere. This feature helps you save both time and storage!

If your customer accepts your estimate, it is better to convert the estimate into an invoice rather than create an invoice from scratch. Here is how you can convert an estimate into an invoice:

Step 1. Go to estimates

As iterated earlier, InvoiceOwl helps you store customers’ data. Once you log into your account, choose the ‘Estimates’ option from the drop-down menu on the left side of the page.

Once you click on ‘Estimates,’ you will see a table comprising every estimate, the ones with pending status, the accepted ones, and even the rejected ones.

Go to the ‘Approved’ segment to find the accepted estimate. Another option is to utilize the ‘Search’ feature to find your desired estimate.

Step 2. Convert the estimate into an invoice in a single click

Once you have gained access to the desired estimate, click the ‘More Action’ column on the right side of the page. It will lead to another drop-down list containing options like ‘Generate Invoice,’ ‘Duplicate,’ ‘View and Print PDF,’ and ‘Delete.’

Convert the estimate into an invoice in a single click

Click on the ‘Generate Invoice’ option to proceed further. Once you click, a dialogue box will pop up asking whether you want to convert the estimate into an invoice.

Select ‘Yes’ to turn your estimate into an invoice.

Step 3. Send the invoice to the client

Once you generate the invoice, you can send it to the client immediately by choosing ‘Email’ as seen on the page.

Send the invoice to the client

Enter the customer name, email ID, subject line, message, and other relevant information before clicking ‘Send.’ Click ‘Send’ to mail the invoice to your customer in no time!

Things to Include in Estimates & Invoices

It is essential to include some pertinent elements while creating estimates and invoices. Without these components, your estimate or invoice may seem unprofessional and incomplete.

Here is a list of all the details you must mandatorily incorporate while creating an estimate and invoice:

  • A header that stands out
  • Unique identification number/Invoice number
  • Your company’s name, contact information, and logo
  • Date of creating the estimate/invoice
  • Details of goods/services sold
  • Cost of each item
  • Tax details
  • Total (including and excluding taxes)
  • Due date
  • A note at the bottom for conveying any additional info
Frequently Asked Questions
  1. Is an invoice the same as an estimate?

    No, an invoice and an estimate are two different things. An estimate is a quote given to the customer to give them an idea of how much the goods/services would cost. It is issued to seal the deal.

    An invoice is issued after the customer agrees to strike a deal with the business. It is like a bill.


  2. Can I change an estimate into an invoice using InvoiceOwl?

    Yes, using our tutorial mentioned above, you can easily convert a quote/estimate into a bill/invoice using InvoiceOwl.

Conclusion

Generating an accurate and expert-level invoice and estimate can help you boost sales.

It can help you convert potential customers into a real customer base.

To create an accurate estimate, you need to indulge in precise pricing. You can create expert–level estimates using invoicing software.

It helps you create invoices and estimates, convert estimates into invoices, keep a tab on open estimates, tracks estimate status-accepted or pending status, maintain progressive billing, and more.

Therefore, using estimate and invoice software to generate professional estimates and convert them to invoices can help you save time and energy.

It also helps you gain support by building a loyal customer base and converting prospects into customers.

Author Bio
Jeel Patel
Jeel Patel
Founder

Jeel Patel is the Founder of InvoiceOwl and is the main curator & writer of the content found on this site. With ideals of quality, commitment, and perseverance, he believes in creating lasting business relationships with the clients.

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