Professional Quote vs Budget: Understanding the Difference

Many business owners use the terms "quote" and "budget" interchangeably, but they serve different purposes and carry different legal implications. Understanding these differences is crucial for effective business communication.

What is a quote?

A quote is a formal offer to provide goods or services at a specific price. It's typically binding for a specified period and represents a commitment from your business to honor the stated terms.

What is a budget?

A budget is an estimate of costs for a project or service. It's generally less formal than a quote and allows for more flexibility in final pricing. Budgets are often used in early project discussions.

When to use each document

Use quotes when you have all project details and can commit to specific pricing. Use budgets for preliminary discussions or when project scope isn't fully defined.

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