What Information Should an Invoice Include?

A quotation and a proposal can both be used before a sale, but they do different jobs. A quotation focuses on the price and commercial details of a specific offer. A proposal usually goes further by explaining the client’s problem, your recommended solution, approach, benefits, timeline, and price.

Small businesses often use the words interchangeably. That is understandable, but choosing the right document can make your sales process clearer and more professional.

What is a quotation?

A quotation tells a potential customer what you are offering and what it will cost. It commonly includes seller and customer details, quotation number, quotation date, valid-until date, products or services, quantities, rates, tax, discounts, total price, and terms.

Quotations are especially useful when the scope is already reasonably clear and the customer mainly needs a firm commercial offer.

What is a proposal?

A proposal is usually more persuasive and explanatory. It may describe the customer’s current situation, objectives, recommended approach, project phases, deliverables, timeline, experience, and commercial terms.

The price may be only one section rather than the main focus. The proposal helps the customer understand why your solution is appropriate.

Quotation vs proposal comparison

Feature	Quotation	Proposal
Main focus	Price and terms	Solution and value
Typical length	Short	Often longer
Used when	Scope is clear	Customer needs explanation
Pricing	Central part	One part of broader document

When a quotation is enough

A quotation is often enough when the customer already knows what they want. A plumber may quote to replace a water heater, a designer may quote for a logo package, a supplier may quote 100 units of a product, or a consultant may quote a defined number of training sessions.

In these situations, the customer mainly needs the exact price, scope, validity period, and terms.

When a proposal is better

A proposal is more useful when the customer needs to understand your thinking before agreeing. A marketing agency may recommend a six-month strategy, a software company may propose a custom system, or a consultant may recommend a multi-stage change program.

In these cases, jumping straight to price may make the offer difficult to evaluate. The proposal explains the logic behind the recommendation.

Can a proposal contain a quotation?

Yes. A proposal can include a commercial section that functions like a quotation. It may list deliverables, quantities, rates, taxes, and total price.

Some businesses send one combined proposal. Others send a proposal first and a separate quotation as an attachment.

Which document should you send first?

If the client asks, “How much will this cost?” and the scope is clear, a quotation may be enough. If the client asks, “How would you solve this problem?” a proposal is usually more appropriate.

You can also use both: proposal for the solution and quotation for the exact commercial offer.

Quotation validity matters

Prices do not always remain valid forever. Costs, exchange rates, supplier pricing, and availability can change. A quotation should normally include a validity period when that matters.

Our professional quotation guide explains the core information that belongs in a clear quote.

What happens after the customer accepts?

Acceptance may lead to a contract, purchase order, deposit invoice, project start, or normal invoice depending on the transaction.

An invoice is different because it is used to request payment. Read invoice vs quotation for a deeper comparison.

Example: website project

Imagine a company needs a new website but does not know exactly what should be built. A proposal could explain the recommended site structure, design process, content requirements, timeline, support plan, and expected business benefits.

The commercial section could list discovery, design, development, and launch support as separate prices. If another customer already has a complete specification, you may only need a quotation showing the price against each requested item.

How to make a quotation professional

Keep the layout simple. Use clear headings, a unique quotation number, customer details, descriptions, quantities, rates, total, validity date, and terms. Avoid hiding important charges in small print.

If a term could change the customer’s decision, make it easy to see.

Create a professional quotation

Build a clear quote with customer details, items, taxes, discounts, validity date, and terms.

Open Quotation Generator

Should you call it a quote or quotation?

Both words are commonly used. “Quotation” is more formal, while “quote” is the shorter everyday term. The purpose of the document matters more than the label.

Common mistakes

• Sending a quotation when the client still does not understand the solution.
• Writing a long proposal when the customer only asked for a simple price.
• Leaving the scope vague.
• Not explaining exclusions.
• Forgetting the validity period.
• Using totals that do not match the listed items.

Frequently asked questions

Is a quotation legally binding?

The legal effect depends on wording, acceptance, surrounding agreements, and applicable law. Do not assume the title alone determines whether it is binding.

Is a proposal the same as an estimate?

No. A proposal explains a recommended solution, while an estimate generally gives an approximate expected cost.

Can I send a quotation without a proposal?

Yes. If the scope is clear and the customer mainly needs pricing, a quotation is often all that is required.

Final thoughts

A quotation answers “what will this cost and on what terms?” A proposal answers a broader question: “what do you recommend and why?” Use the simplest document that gives the customer enough information to make a confident decision.