Creating and Managing Estimates
Applies to Quicken Business & Personal
Overview
An estimate (also called a quote or proposal) lets you share pricing with a client before work begins. It outlines scope, pricing, and terms without creating any financial transactions.
Once accepted, you can convert the estimate into an invoice in one step, avoiding duplicate data entry and ensuring accuracy.
Where Estimates Fit in the Sales Workflow
Quote → Bill → Get Paid
Estimates represent the quote stage of your sales process. They are optional and are most useful when pricing or scope needs approval before work begins.
Depending on how you do business, your workflow may look like:
Estimate → Invoice → Payment
When pricing is approved before work startsInvoice → Payment
When work is completed before billingSales Receipt
When payment is received immediately
Use estimates when they add clarity to the agreement. Skip them when they don’t.
Tip: If work is already complete or payment happens immediately, start with an invoice or sales receipt instead.
Why Estimates Matter
Estimates are often your first formal interaction with a client about cost. A clear estimate:
Sets expectations and builds trust
Documents exactly what is included in the quoted price
Reduces misunderstandings and scope disputes
Makes invoicing faster and more accurate
Helps you track which quotes turn into real work
Because estimates live in the same system as invoicing and bookkeeping, you maintain a complete record from quote to payment.
How Estimates Work
An estimate looks like an invoice but does not affect your books. Think of an estimate as a preview of an invoice that hasn’t entered your books yet.
Creating an estimate:
Does not record income
Does not create Accounts Receivable
Does not appear in reports
Cannot accept payments
Because an estimate is not a bill, payments must be recorded on an invoice or sales receipt instead.
It includes:
Client and optional project information
Detailed line items with descriptions, quantities, and rates
Taxes, discounts, and totals
Notes, terms, and expiration details
Real-World Examples
Hourly or Ongoing Work
A marketing consultant estimates 25 hours of work at $95 per hour for a website audit. The client approves the estimate before work begins. After completing the project, the consultant invoices only for the 22 hours actually worked.
Why this works: The estimate sets expectations for cost while allowing flexibility to bill accurately for actual time spent.
Fixed Price Project
A house painter visits a client to assess a job and provides a written estimate for $3,200. The estimate helps the client understand the scope and approve the price before work begins. After completing the job, the painter converts the estimate into an invoice to request payment.
Why this works: The estimate documents agreed pricing before any work starts.
Tiered Service Packages
A designer creates three standard estimate templates (Basic, Professional, Premium). When a potential client inquires, she customizes one and sends it within minutes. Most clients select a package and approve it, allowing her to quickly convert the estimate into an invoice when the project is complete.
Why this works: Estimates make quoting fast and professional while keeping pricing consistent.
Multi-Phase Project
An IT consultant breaks a large project into phases within an estimate. The client approves phases 1–3 but postpones the rest. The consultant converts only the approved phases into an invoice and keeps the remaining phases in the estimate for future work.
Why this works: Estimates allow flexible billing for complex or phased projects.
Creating and Managing Estimates
Creating an Estimate
In the left navigation, select Sales & Billing → Estimates.
Click + Estimate.
Select the Business, Client, and optional Project.
Enter the Issue Date and Estimate #.
Add items, quantities, pricing, taxes, and discounts.
Use Preview to review.
Select Send to… or Mark as Sent (No Email).
Revising an Estimate
In the left navigation, select Sales & Billing → Estimates.
Locate the estimate and open the three-dot menu.
Select View Estimate, then Edit.
Make changes and Save.
Re-send the estimate if needed.
Update the status if the client needs to re-accept it.
Duplicating an Estimate
In the left navigation, select Sales & Billing → Estimates.
Locate the estimate and open the three-dot menu.
Select Duplicate Estimate.
Edit as needed and Save.
Useful for recurring or similar jobs.
Deleting an Estimate
In the left navigation, select Sales & Billing → Estimates.
Locate the estimate and open the three-dot menu.
Select Delete Estimate and confirm.
Deleting an estimate does not affect reports or transactions.
Converting an Estimate to an Invoice
When a client approves your estimate, you can convert it directly into an invoice. Client acceptance is not required, but it provides helpful documentation that pricing was approved.
In the left navigation, select Sales & Billing → Estimates.
Locate the estimate and open the three-dot menu.
Select Generate Invoice.
Confirm the issue date, due date, and invoice number.
Review, preview, and send the invoice.
When you convert an estimate:
All items, pricing, and details transfer to the invoice
The original estimate remains in your records for reference
The invoice becomes part of your financial records
Partial Conversion
You can convert some or all line items from an estimate into an invoice. This is helpful for phased projects, partial approvals, or progress billing.
Best Practices for Strong Estimates
Be specific in descriptions
Break large totals into clear components
Include timelines and exclusions
Set expiration dates
Use consistent rate structures
Common Challenges
Scope creep: Update the estimate instead of absorbing extra work
Comparison shopping: Demonstrate value through clarity, not discounts
Verbal approvals: Always document acceptance
Old pending estimates: Follow up or close them to keep records clean