A quote is a formal document that establishes a commitment between two parties to exchange services or goods at an agreed price. From a legal perspective, a signed quote isequivalent to a contract between the two parties.
However, quotes aren’t the same as invoices and can’t be used in their stead. In certain cases, the price indicated on the final invoice may exceed the amount agreed upon in the quote:
Labor or material costs turn out to be higher than the amount indicated in the initial quote. This exception mostly applies to construction companies and contractors.
Additional work is required to complete the project, which wasn’t foreseeable when the quote was initially signed.
What’s the difference between a quote and an invoice?
Although quotes and invoices are both essential documents for self-employed entrepreneurs, micro-businesses, and SMEs, there are plenty of differences between them that you should be aware of.
Timing
A service provider or supplier sends a quote at the start of a commercial relationship with a new customer. This document sets out the finer details of the service or merchandise, as well as the price.
An invoice is an accounting document that concludes the purchasing process. In order to get paid, the provider sends it to their customer after performing a service or supplying merchandise.
Legal value
A quote is equivalent to a contract only after your customer has signed it. This difference is important, because an invoice is a legally-binding document as soon as you generate it via your invoicing software.
Requirements for quotes and invoices
In most cases, sending a quote is not mandatory for self-employed entrepreneurs, micro-businesses, and SMEs. However, businesses in particular industries are required to issue quotes on a routine basis:
Construction, maintenance and repair services.
Personal care and support services.
Removal services.
Car rental services.
Health-related services.
Even if your business doesn’t fall under one of these categories, we still recommend you send quotes to your customers. A signed quote formalizes their commitment, proving they've agreed to the terms and price of your service.
Invoices, on the other hand, are mandatory documents for all commercial sales and services.
Document numbering
You need to number your invoices in chronological order, whereas you’re free to number your quotes as you see fit.
How do I create an invoice from a quote?
You can create your invoices manually by using a ready-made template (template in French), once your customer has signed your quote and you've performed the requested service. However, creating invoices manually always involves an element of risk.
To save time and reduce the risk of human error, we suggest you use specialist invoicing software to easily convert your quotes into invoices.
If you're already using a CRM, consider using an invoicing add-on. An integration like this equips you with all the invoicing features you need, while allowing you to manage your business from a single app.
With this in mind, Qonto built an invoicing tool directly into your business account that enables you to:
Generate quotes and invoices in minutes.
Track invoices awaiting payment and quotes awaiting approval.
Send reminders to your customers if invoice payments are overdue.
Import invoices and bank transactions directly into your accounting software, such as Sage or Cegid.
What software should I use for quotes and invoices?
Here are 3 invoicing solutions to consider, each with essential features for managing your daily business and finances.
Henrri: invoicing software designed for micro-businesses and SMEs
Henrri is a free online invoicing solution that hit the market in 2016. It meets all legal requirements as set out in France's VAT anti-fraud law (La loi anti-fraude à la TVA). Like other invoicing tools, Henrri helps you to:
Prepare your accounts.
Analyze your business performance.
Produce reports to identify your best-selling items or key customers.
However, most of these features are not available on the free plan. The free version is limited to quote and invoice generation, deposit processing, and bookkeeping exports.
Tolteck: quotes and invoicing software for construction workers
Tolteck is specialized invoicing software designed for professionals in the construction industry:
Built-in materials database.
Connection to your materials and construction suppliers.
Project cost management with Solu+ software.
It also offers the essential features included in any high-quality invoicing software:
Custom sales documents.
Deposit invoicing.
VAT rate management.
Dashboard for performance tracking.
Tolteck prices start at €19/month excl. VAT for annual subscriptions, with an additional discount available if your company is less than 5 years old.
Qonto: the business account with a built-in invoicing tool
To offer a complete finance management solution, Qonto developed its own invoicing software that allows you to generate quotes and invoices in minutes.
Like all the major solutions on the market, you can customize your documents and add your company logo to give them a professional finish.
The key advantage of Qonto's invoicing tool is that it's built into your business account. This means you can manage your revenue and cash flow all in one app.
In addition, Qonto seamlessly integrates with all the main software you use to run your business on a day-to-day basis. For example, you can export your accounting and banking documents to 50+ accounting tools, such as Sage or Cegid, in just a few clicks.
