How Can You Convert an Estimate to an Invoice

As a business owner, accurately managing estimates and invoices is crucial for maintaining a healthy cash flow. QuickBooks, a popular accounting software, offers a seamless way to create estimates and convert them into invoices when the work is approved. This step-by-step guide will walk you through converting an estimate into an invoice using QuickBooks.

Step-By-Step Guide for Converting an Estimate into an Invoice in QuickBooks Online

Step 1: Sign In to QuickBooks Online

Visit the QuickBooks website and sign in to your account using your credentials.

Step 2: Navigate to the Get paid & pay Tab

Once logged in, locate and click the 'Get paid & pay' tab on the left-hand navigation menu.

Step 3: Select the Estimate Option

Once you select the 'Get paid & pay’ tab, you'll find various options; click 'Estimates' from the available options.

Step 4: Check the Status of an Estimate

When you send an estimate to your customer using QuickBooks, you can track its status, such as whether it has been viewed, accepted, or declined.

Step 5: Change the Status of an Estimate

If your customer accepts the estimate online, the status will automatically be marked as 'accepted.' If you receive a verbal confirmation, you can manually mark the estimate as 'accepted.'

Step 6: Convert an Estimate into an Invoice

To convert an estimate into an invoice, locate the relevant estimate and click 'Convert to Invoice.'

Alternatively, you can select the estimate, click 'More Actions,' and choose 'Convert to Invoice.'

Step 7: Review and Edit the Invoice

QuickBooks will automatically prepare the invoice with details from the estimate, including the products or services used. Before converting the estimate into an invoice, verify all the products, quantities, rates, and discounts. Verify that the estimate reflects the agreed-upon terms with your customer. You can change the quantities and rates or add additional products/services to the invoice if required.

Step 8: Print Preview

Take a moment to preview the invoice in different formats, such as email view, PDF view, and online view. Once satisfied with the invoice, select 'Email' to send to your customer.

Step 9: Check the Status of the Invoice

When you send an invoice through QuickBooks, you can easily track its status by checking the invoice list, including whether the customer has viewed it.

Step-By-Step Guide for Converting an Estimate into an Invoice in QuickBooks Desktop

Step 1: Access the Estimates Feature

Click on the 'Customers' menu and select 'Customer Center’ from the dropdown.

Step 2: Select the Transactions Tab

Select the ‘Transactions’ tab in the customer center window and click ‘Estimates’ from the dropdown.

Step 3: Choose the Estimate

QuickBooks will automatically display the available estimates window, showing all available estimates for the selected job. Select the estimate you want to create an invoice.

Step 4: Choose Invoicing Option

Once you open the selected estimate, you can see an option as ‘Create Invoice’ at the top of the ‘Estimate’ window.

Step 5: Review and Customize the Invoice

Your estimate will be converted into an invoice once you click the ‘Create Invoice’ option. Review the invoice and make necessary changes or adjustments for the products/services, amount, and date. Double-check the information for accuracy and completeness.

Step 6: Save and Finalize the Invoice

After reviewing and customizing the invoice, click the 'Save & Close' or 'Save & New' buttons to complete the process.

You can check out this guide import invoices into QuickBooks, for a seamless import of bulk invoices into QuickBooks.

FAQs

Q1: How Do I Convert an Estimate into an Invoice in QuickBooks Online?

1. Sign in to QuickBooks Online

2. Navigate to the ‘Sales’ tab

3. Select ‘Estimates’ option

4. You can track the estimates’ status, such as whether it has been viewed, accepted, or declined.

5. Locate the relevant estimate and click on 'Convert to Invoice.'

6. Alternatively, you can select the estimate, click 'More Actions,' and choose 'Convert to Invoice.'

7. Take a moment to preview the invoice in different formats, such as email view, PDF view, and online view. Once satisfied with the invoice, select 'Email' to send to your customer.

Q2: How Can I Convert an Estimate into an Invoice in QuickBooks Desktop?

1. Navigate to the ‘Customers’ menu and select ‘Customer Center.’

2. Choose the ‘Transactions’ tab and select ‘Estimates’ from the dropdown menu.

3. QuickBooks Desktop will automatically display the available estimates window. Select the estimate you want to convert.

4. Select the ‘Create Invoice’ option at the top of the estimate window

5. The selected estimate will now be converted into an invoice

6. Review and make any necessary adjustments to the invoice

7. Click 'Save & Close' or 'Save & New' to complete the conversion process

Q3: Can I Convert Only a Portion of the Estimate into an Invoice?

No, QuickBooks allows you to create an invoice for the total estimate, a percentage of the estimate, or selected items with different percentages. You can choose the option that fits your billing requirements.

Q4: How Do I Customize the Invoice after Converting It from an Estimate?

After the estimate is converted into an invoice, you can review and modify the invoice as needed. QuickBooks provides options to edit line items, quantities, and rates, add discounts, include additional charges, and personalize the invoice template to match your branding.

Q5: Are There Any Settings to Control the Display of Zero-Amount Line Items on the Invoice?

Yes, both QuickBooks Online and QuickBooks Desktop allow you to customize your preferences. Within the 'Jobs and Estimates' category, you can configure settings to hide zero-amount line items from printing on the invoice.

Q6: Can I Convert Estimates into Invoices Using Progress Billing in QuickBooks?

Yes, QuickBooks supports progress invoicing, also known as progress billing or partial billing. This feature enables you to create invoices for jobs completed in phases. You can transfer specific items or percentages from the estimate to the invoice based on the progress made on the project.

Q7: Will QuickBooks Track Estimated Costs and Revenue against Actual Costs and Revenue?

Yes, when you create invoices from estimates, QuickBooks provides reports that compare estimated costs and revenue with actual costs and revenue. This action helps you analyze project profitability and make informed business decisions.

Q8: Can I Convert Estimates into Invoices for Multiple Customers Simultaneously?

No, converting estimates into invoices is performed on a customer-by-customer basis. You need to repeat the steps for each customer and their respective estimates.