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How to Create an Estimate in QuickBooks Online

How to Create an Estimate in QuickBooks Online

To create an estimate in QuickBooks Online, add customer info, list services, and set prices. Easily convert approved estimates into invoices with DepositFix.

To create an estimate in QuickBooks Online, enter your customer’s details, products or services, and pricing to outline project costs before work begins. Estimates give clients clarity about what they’ll pay and help you streamline your billing once the job is approved. 

Navigate to the Estimate Feature

To get started, you need to open the Estimates tool in QuickBooks Online.

  1. From your Dashboard, click on the + New button on the left-hand menu.
  2. Under the Customers section, select Estimate.
  3. The Estimate form will open, allowing you to enter all necessary details.

This is the starting point for building a professional and accurate estimate that can later be converted into an invoice once approved by your customer.

Add Customer Information

In the Customer dropdown, choose the client you’re creating the estimate for. If they’re a new customer:

  • Select + Add new and enter their name, email, and other details.
  • Click Save to store the information for future transactions.

Example: If you’re an electrical contractor preparing an estimate for “GreenTech Builders,” select or add them here. The customer’s details will automatically appear on the estimate, ensuring consistency across future invoices and receipts.

Enter the Estimate Date and Expiration

Add the Estimate Date, which is the day you’re creating the document, and include an Expiration Date to set a time frame for how long the estimate is valid.

Tip: Many businesses set a 30-day expiration window to account for pricing changes or project scope adjustments.

Field
Description
Example
Estimate Date
The date you create the estimate
October 13, 2025
Expiration Date
The date when the estimate expires
November 12, 2025

Add Products or Services

In the Product/Service section, list all the items or services you’re quoting for. You can select them from your existing product catalog or add new ones.

For each line item, include:

  • Description – brief details about the product or service.
  • Quantity – how many units or hours are required.
  • Rate – cost per unit or hour.
  • Amount – automatically calculated by QuickBooks.

Example:

Product/Service
Description
Quantity
Rate
Amount
Electrical Wiring
Residential rewiring per room
3
$250
$750
Lighting Fixtures
LED installation
10
$50
$500

QuickBooks will automatically total all line items, including applicable taxes or discounts.

Apply Taxes, Discounts, or Additional Charges

Depending on your business and region, you might need to apply sales tax. To do this:

  • Toggle on Tax for each taxable item.
  • Choose the correct Tax Rate from your list.

You can also add discounts or extra charges:

  • Use the Discount field to reduce the subtotal for promotional offers or customer loyalty rewards.
  • Add Shipping or Additional Fees if applicable.

Tip: Always verify your tax rates are up to date, especially if you operate in multiple states or regions.

Customize the Estimate Message and Template

QuickBooks allows you to personalize your estimate templates to reflect your brand.

  • Click on Customize at the bottom of the form to adjust your logo, colors, and layout.
  • In the Message on estimate field, write a professional note to the client, for example,
    “Thank you for considering our services. Please review and approve the attached estimate.”

This small touch reinforces professionalism and clarity.

Review and Save Your Estimate

Before sending, carefully review every section for accuracy. Double-check:

  • Customer name and contact details.
  • Line items, quantities, and pricing.
  • Tax and total calculations.

Once you’ve verified all details, click Save and send or Save and close.

  • Save and send lets you email the estimate directly to your customer.
  • Save and close stores it in QuickBooks without sending, so you can review it later.

Track Estimate Status

After sending the estimate, you can monitor its progress directly within QuickBooks.

Each estimate shows one of the following statuses:

  • Pending – waiting for customer response.
  • Accepted – customer has approved the estimate.
  • Declined – customer rejected the proposal.
  • Closed – estimate converted into an invoice.

To update a status manually, open the estimate and select the correct option from the Status dropdown.

Example Workflow:

  1. You send an estimate for $1,250 on October 10.
  2. The client approves it on October 13 — change the status to Accepted.
  3. Once work is completed, click Create Invoice to convert it directly into a billable document.

Convert the Estimate to an Invoice

When your customer approves the estimate, converting it into an invoice is simple.

  • Open the accepted estimate.
  • Click Create invoice.
  • Choose whether to invoice the entire estimate or a partial amount (useful for progress billing).

This integration ensures you don’t need to re-enter any data, maintaining accuracy and saving time.

Simplify Your Billing Workflow with DepositFix

If you want to make the process even smoother, integrate your QuickBooks account with DepositFix. With DepositFix, you can automatically convert accepted estimates into invoices, accept payments securely through ACH, debit, or credit cards, and sync all transaction data instantly. It’s a powerful way to make your estimate-to-payment process effortless, accurate, and fully automated, so you can focus more on delivering great service instead of managing billing manually.

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Table of Contents:
More resources:
How to Convert an Estimate to an Invoice in QuickBooks Online

To convert an estimate to an invoice in QuickBooks Online, open the estimate, click “Create Invoice,” review details, and send it to your customer.

‍Read more
How to Create a Progress Invoice in QuickBooks Online

To create a progress invoice in QuickBooks Online, turn on progress invoicing, build invoices from estimates, and bill customers by project phase or completion.

‍Read more
How to Create Invoices in QuickBooks

To create invoices in QuickBooks, enter customer info, add services, set rates, and send online. Clear, itemized invoices speed up payment collection.

‍Read more

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