What are estimates in QuickBooks?

Estimates in QuickBooks refer to quotes provided to customers that detail the expected expenses associated with specific jobs or projects. These documents serve as a preliminary indication of the costs that a customer can anticipate before committing to the work. By generating estimates, businesses can provide customers with a clear understanding of the anticipated charges, helping to facilitate decision-making and establish trust.

In QuickBooks, estimates can be converted into invoices once the job is completed and the customer agrees to the quoted cost. This functionality streamlines the billing process and ensures that all parties have a clear reference to the agreed-upon amounts. Additionally, this capability allows businesses to keep track of work in progress and manage customer expectations effectively.

While quotes are an essential part of the sales process, invoices, reports, or budgets do not fit the definition of estimates. Invoices are essentially bills sent after the work or service has been provided, reports are analytical tools used for performance review, and budgets are financial plans set for future projects, all of which serve different purposes in business accounting and management.