What does "estimate" mean in QuickBooks?

In QuickBooks, the term "estimate" refers specifically to a proposal that outlines the potential cost of goods or services before a final sale occurs. This function allows businesses to provide customers with a detailed overview of projected prices and services, enabling them to make informed decisions before committing to a purchase. An estimate can include information on quantities, costs, and any applicable taxes, giving it a clear and structured format.

This capability is particularly useful for service-based businesses or projects where costs may vary, allowing for flexibility and negotiation before formalizing the transaction. When an estimate is accepted by a customer, it can then be converted into an invoice for further processing.

The other choices refer to different aspects of financial management within QuickBooks. An invoice, for instance, is a finalized document requesting payment, while records of goods sold and general financial reports serve distinct functions in the overall bookkeeping and accounting processes.