Zoho Invoice

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Estimates are documents which denote the approximate cost of products or services you sell.

Understanding Estimates

Estimate, literally means an approximation or a rough calculation of the value of a product or service. Estimation is the process of evaluating the value of something. Likewise, in your business, estimate is a document that you give to your customers with an estimate of the value of the product or service that you’re selling to them. Let’s look at Mark’s business to better understand Estimates.

Scenario: Mark runs a construction firm and takes up a project to construct a house for one of his customers. Firstly, he creates an estimate for the project which is an approximation of all the costs involved to complete the construction. Mark sends the estimate to his customer to negotiate on the estimated price. The final amount that his customer has to pay can more or lesser than the estimated amount.

Similarly, you can create an estimate for the products or services that your customers have ordered from you to negotiate the price with your customers. As soon as your customers agree on the price, they can accept the estimate in the Client Portal or, you mark the estimate as accepted manually and convert it to an invoice. The following diagram will help you understand how Estimates work in Zoho Invoice.

Life Cycle of an Estimate

Pro Tip: It’s not mandatory to create an estimate If you sell your products or services with fixed prices to your customers. You can directly create an invoice and receive payments.

Create & Send Estimates

Estimate Preferences

Managing your Estimate

Estimate Actions

Customizing your Estimates