1) To send to a customer/client for payment in advance of a sale or service. If, for whatever reason, the sale is not concluded the supplier has very little administration: no credit note...
2) To accompany a consignment of goods, say on, sale or return. In this instance a full invoice would be issued, say on, a monthly basis, taking account of all units sold.
Quote or Estimate
A quote or an estimate is an extremely good selling tool (taking the above into account) that allows you to compete for business in a competitive world. You must resist the temptation to cut your margins to secure day to day business. You must ensure the price you give is the price of survivability, plus the opportunity to trade, with profit, tomorrow.
A quote is a formal offer to sell a product/service for an amount of money in a given time frame. An estimate is a guide (it should be a good guide) as to the potential cost of a product/service.
If you provide a quote that is undercharged or you do not want to provide the product/service for the price you quoted, you should reissue the quote or withdraw from the sale/service. No business can be held to provide a product/service where obvious mistakes exist: this rule works for the majority of issues in business contracts/agreements.
Receipt
A receipt has been added to the Bizhelp24 package to facilitate those who are not registered for vat, as they fall below the 12 month turnover threshold of £56,000. as a reminder, a quote from H M Customs & Excise:
"you will have to be registered if: at the end of any month, the value of the taxable supplies you have made in the past 12 months or less has exceeded £56,000; or,
at any time there are reasonable grounds for believing that the value of the taxable supplies you will make in the next 30 days will exceed £56,000.
If you have not already tried our free sotware, it is available to download at: www,bizstart24.co.uk which will provide you with templates of all of the above plus more.
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