Estimate vs Invoice: What Contractors Should Send and When
Contractors typically send three documents across a job: an estimate before work starts, an invoice for what is owed, and a receipt once payment is in. Sending the right one at the right time keeps expectations clear on both sides.
Estimate
- Usually comes before the work starts
- Communicates the expected scope and expected cost
- Gives the customer something to review and approve before work begins
- The actual work or final cost can end up different depending on the job and what is agreed along the way
Invoice
- Requests payment
- Normally reflects the amount owed for completed or provided work, products, milestones, or agreed billing
Receipt
- Confirms that payment was received — see How to Make a Receipt for a Customer
The typical workflow
Customer asks for jobEstimateCustomer acceptsWork happensInvoiceCustomer paysReceipt
Worked example
A painting contractor receives a request to repaint two rooms.
- Estimate
- Labor + materials expected = $1,200
- Customer accepts
- Work is scheduled
- During the job
- An agreed extra repair adds $150
- Final invoice
- $1,350
- Receipt
- Confirms the $1,350 payment
Whether an estimate is legally binding depends on your agreement and local law, which vary — this guide only covers the practical workflow, not the legal weight of any document.
Estimate vs Invoice
| Estimate | Invoice | |
|---|---|---|
| Purpose | Communicates expected scope and cost | Requests payment for work, products, or milestones |
| When sent | Before work begins | After work is completed or at agreed billing points |
| Requests payment? | No | Yes |
| Expected/final amount | Expected — can change as the job develops | Final — reflects the actual work and agreed billing |
| Typical next step | Customer accepts, or requests changes | Customer pays, then a receipt follows |
Send the right document
Build the estimate, send the invoice, and confirm payment with a receipt — all from Pocket Toolbox.