Invoice or estimate? Use the right document.

An estimate describes the work, quantities and expected costs before a client authorizes the project. An invoice requests payment, normally after a product or service is delivered or at an agreed milestone. Some businesses also use pro forma invoices, purchase orders or receipts, each with different purposes.

What belongs on an invoice?

Typically include a document number, issue date, supplier identity, client details, a clear description of goods or services, quantities, unit prices, currency, subtotal, any separately identified discount and tax, the total amount due, payment instructions and due date. Your country may require additional tax identifiers or specific wording.

Worked example

Two design hours at $100 each plus one $50 asset package produce a $250 subtotal. A 10% discount reduces the subtotal by $25. An 8% tax on the discounted $225 contributes $18. With $5 shipping or another non-taxed charge, the final total is $248. The invoice builder calculates this breakdown.

Protect sensitive client details

BillSpruce does not upload invoice form entries or automatically retain a copy of completed documents. Before refreshing, save the PDF yourself. Check the spelling, tax treatment and account/payment instructions carefully. Never place password or full payment-card details in a free-text field.

Understanding pricing

Use the margin calculator to compare sales revenue against product cost, fees and other expenses, then decide whether your price leaves adequate room for overhead and tax. A quote and invoice can use the same line items while serving different stages in a customer relationship.