Are you embarking on the entrepreneurial adventure and wondering if it's really useful to provide quotes to your clients? Quotes can indeed be optional in some cases, although it's strongly recommended to establish a quote before honoring a mission or product sale. Discover why it's essential to offer quotes to your clients, how they ensure a protective role in case of disputes, as well as the necessary elements for establishing a proper quote.

What is a quote?

Definition of a quote

A quote is a summary document of the different services or products offered by a company, with the unit price and total amount due indicated. Generally free, a company can very well make a paid quote, provided they inform the client. The quote includes a validity period and legal requirements necessary for its compliance. Finally, it takes on contractual value only when validated by a client, that is, following a manual or stamped signature, preceded by the special mention "Accepted and agreed". Note that quotes are preferred for service provisions, while commercial activities will rather use purchase orders.

Its main asset

The quote commits both parties, in other words the company and the client, until the end of the mission or receipt of the ordered products. The client is indeed obligated to pay the total announced amount, while the service provider commits to not modifying their quote with, for example, the addition of materials or services. It is therefore essential to establish a quote according to the rules of the art to avoid any dispute.

Why provide quotes to your clients?

Validate an order

Following an exchange with a potential client about their needs, the quote will serve as a summary of the services and products that can be offered. Once signed by the client, the order is validated and the mission or order can be launched. However, the quote only takes on contract value upon the client's signature. It must obviously contain all the necessary legal requirements to have legal value.

Allow payment installments

Creating a quote is also ideal for allowing payment in several installments, whether for a large product order or for a service provision carried out in multiple stages. With each client payment, the professional must however establish a corresponding deposit invoice and transmit a final balance invoice at the end of the mission.

Protect yourself in case of disputes with a client

The legal requirements necessary to make a correct quote are not entirely sufficient to protect you, it will also be wise to attach general terms of sale. To have the quote and the GTS validated by the client, you should preferably attach them to the back of the quote for paper format or within the same PDF file for the digital version. Finally, insert the special mention in the section dedicated to signing the quote: "acceptance of the quote constitutes acceptance, understanding and reading of the attached GTS." Note that a properly completed quote and GTS allow professionals to legally claim their due in case of non-payment by a client.

Mandatory cases for quotes

Generally, a quote is only mandatory when the order amount exceeds 1,500 euros. This amount can however fluctuate, as for personal service companies that must mandatorily make a quote from 100 euros including tax. Other sectors are simply required to establish a quote for all orders regardless of the amount (e.g., moving companies). If you're still hesitant to make a quote for small amounts, inquire with the union dedicated to your activity to know your obligations regarding quotes.

How to draft a compliant quote?

If you're wondering how to manually make your quotes on Excel according to the rules, here are the main necessary legal requirements below. However, it will be wiser to make your quote using accounting software that meets French standards, to avoid any omission or error.

The main requirements of a quote

• The quote number;
• Its creation date;
• The identity of the service provider/seller company;
• The client's identity;
• The products/services offered for sale and their volume;
• Their price excluding tax and including tax as well as the VAT amount for each volume;
• The total of each element: overall volume, total amount excluding tax, including tax and VAT;
• The date and place of delivery or mission;
• The payment method;
• Penalties incurred for late payment;
• Quote validity period;
• Client signature, preceded by the note: "accepted and agreed";
• Service provider signature.

Key takeaways about quotes

The quote is not mandatory for all activities, but it's strongly recommended to offer one to your potential clients, to secure both parties. It must be properly constituted to have legal value in case of disputes, such as non-payment. Finally, the quote gives credit to your activity, you'll indeed have more chance of completing your mission by offering a serious quote rather than simply indicating the amount of your services by email or phone.

With our online quote and invoice software, you'll save time by creating professional quotes that you can convert with a single click into invoices. You can test our invoicing software for free for 15 days and/or contact us to get a free demonstration of our quote and invoice service.