Making a quotation: how do I do it?

You’ve been asked to provide a quotation for a customer. Great!

But what exactly is a quotation? Does it have any impact on your accounting? What do you need to bear in mind when preparing one? Rest assured, this article will set you on the right path to creating a professional quotation.

Quotations are important because well-founded proposals will help you secure more orders. 

What is a quotation?🔎

A quotation is a price proposal for a customer. Quotations give you the opportunity to present your products and services, including the corresponding prices. You can therefore consider a quotation as a sample invoice.

Of course, a quotation does not yet have any impact on your accounting, which only happens when you proceed to a sales invoice. Luckily, in Dexxter, you can turn a quotation into an invoice with just one click!

Think of a restaurant menu: as long as you haven’t ordered anything, the menu is nothing more than a price proposal.

Is a quotation the same as an invoice?

No, a quotation is not the same as an invoice. A quotation is a proposal without any obligation to pay, while an invoice is a request for payment.

Once a customer decides to accept a quotation, you create an invoice based on this quotation.

If an invoice is disputed, it is often due to a price deviation from the original quotation. Therefore, always try to leave room in your price proposal for a final statement based on the actual materials used and/or labor hours at pre-agreed unit prices.

Are quotations mandatory?

No, it is not mandatory to create a quotation. You may have already agreed on everything verbally or via email, in which case you can send an invoice immediately.

What should a quotation contain?

In short, a quotation is a document that you send to a (potential) customer with your price proposal. But what exactly should this quotation contain?

Basic information 📄

Your details and your customer’s details

It is best to include as much information as possible about your potential customer. This way, there will be no doubt afterwards about who your proposal was intended for. So, when creating a quotation, it is best to ask your customer for their VAT number.

Date & expiry date

The date on which you drew up your quotation is an obvious part, but don’t forget to add an expiry date.

You are free to choose the expiry date, but it ensures that the current conditions (prices, materials, terms, etc.) that you are offering your potential customer will not remain valid indefinitely. 

A quotation number

Unlike the invoice number, a unique and consecutive quotation number is not mandatory, but it can be useful! This makes it easy to keep track of all your quotations.

Quotation items

You can then add what you are actually quoting for, i.e. your products or services. The more details you include here, the less chance there will be of any ambiguity about what you are offering, which your potential customer will appreciate. 

What else should you add to your quotation? 📢

A quotation number

It is mandatory to use consecutive numbering for invoices, but not for quotations. However, adding a number is useful for both you and your customer.

Your terms and conditions

In the small print, you can write down everything your customer needs to know. What if the customer does not pay on time, what if there is force majeure, etc. 

A comment

Here you can add an optional message for your potential customer. Think of specific details that you want to mention or emphasize separately. Or a reference to a previous contact or discussion.

In summary: What should a good quotation contain?

• Your company details (name, address, VAT number and bank account)
• Your customer’s details
• The date and period of validity of the quotation
• A description of what you are offering at the stated price
• Your VAT rates
• A quotation number
• The terms and conditions of the quotation, or the ‘small print’
• A comment

The last three bullet points are not legally required to be included in your quotation, but we strongly recommend that you include them. By adding terms and conditions, you can avoid ambiguities in the event of a legal dispute.

How do I actually create a quotation?

Now that you know what to put on your quotation, it’s time to actually draw it up. But how do you do that? There are several options!

	Excel or Word	Invoicing software	Accounting software such as Dexxter
Create quotations quickly and easily?	❌	✅	✅
Convert quotations into invoices in one click?	❌	✅	✅
Add quotations to your accounting immediately?	❌	❌	✅

Why are quotations so important?

Potential customers often want to compare quotations so they can make the best choice. That’s why it’s useful to send a clear and attractive quotation.

A quotation allows you to do much more than simply offer your products or services to potential customers, namely:

• You may not be the cheapest provider of a particular product or service, and you will have good reasons for this. A price proposal gives you the opportunity to explain these reasons, so that potential customers immediately know what sets you apart from the competition.
• Perhaps you have had a verbal conversation with a contact person, but the final decision is made by someone else. With a detailed price proposal, you can easily convince anyone.
• A well-structured quotation is also a great showcase for your company. It shows your potential customer that you guarantee transparency and structure.

How do you create a quotation in Dexxter?

Dexxter is the best accounting software for sole proprietorships. What’s more, you can easily generate quotations and invoices in Dexxter. The software takes all the rules into account, and thanks to the fill-in fields, you can draw up a professional quotation in less than a minute.

👀 Did you know that Dexxter is fully customized to who you are? For example, if you are an entrepreneur exempted from VAT, your quotations are automatically adjusted to this status!

By using Dexxter, you can send quotations much faster. If you often offer the same products or services, you can save them in Dexxter as a regular sales item. This means that the description, price, VAT rate, etc. are already entered.

That way, you can quickly and easily select this sales item for all your future quotations or sales invoices.

Dexxter is the accounting program for Belgian sole proprietorships that want to take their accounting into their own hands!

Quotation ready? Send it! 📤

Dexxter allows you to send your quotation directly by email to your potential customer. Not only does this save you a lot of time, but it also creates a convenient overview for accurate follow-up.

Has your customer sent you a signed version of your quotation? Give your quotation the status ‘accepted’. That way, you keep track of which documents have which status.

Any questions about creating quotations?

That’s perfectly normal, many of your fellow entrepreneurs have the same questions!

That’s why we’ve built a community in Dexxter. It’s a place in the application where entrepreneurs can ask questions and get answers from other entrepreneurs. Together, they brainstorm to come up with solutions.In addition, we also offer a learning center in Dexxter, packed with content, videos, courses, and much more! You’re not alone as a (starting) self-employed person, let that be clear!