ACROBAT FOR BUSINESS | 8-MINUTE READ
Free customizable estimate template.
Create professional files with our easy and free estimate template.
An estimate is an indispensable part of business for companies that conduct regular sales activities. It is an essential document that outlines the inclusions, quantities, and pricing expected for a particular sales agreement, giving the customer an idea of what their needs or wishes will cost.
While you might think a formal estimate is optional, it can be a great way to create transparency and underscore customer trust. By providing a detailed estimate, you can demonstrate what you expect a project to entail, creating valuable conversations around inclusions and expectations. An estimate also outlines the anticipated costs per line item so customers can budget for their project appropriately while eliminating any surprises later.
Estimates are used across a variety of business industries. They are commonly offered by IT, manufacturing, and construction companies because their services can often lead to scope creep — situations where requirements can change over time. Establishing expectations and expenses from the start can help reduce these changes and clarify included costs.
While estimates are helpful, they are not considered contracts. These documents can formally note pricing and inclusions that may occur, but a final invoice may vary from the initial estimate.
An estimate may also be a part of a larger business proposal. Some industries also require bid proposals as part of their evaluation of external vendors for more involved projects. These documents are an opportunity to go into more detail about the specifications and stages of a project, with the estimate providing a summary and calculating costs at the end.
The good news is that while estimates may be essential to incorporate into your sales processes, they don’t have to be complicated. By using estimate templates, you can reduce the repetitive processes tied to document creation. Use a free estimate template as a starting point to create your custom master file.
How to create and send an estimate.
Be sure you have the right software when developing an estimate. While some enterprise resource planning (ERP) systems may include an automated means to output an estimate, not all companies can access these robust systems.
Instead, you can create an estimate template from a PDF or Microsoft Word document. These files can then be emailed easily to customers for review before starting a project.
When composing your estimate, consider what to include and how you’ll compare to the competition. This task can help direct how much detail you’ll want to outline and where you’ll land when pricing the project.
The best estimates encompass hard costs for products or goods and incorporate essential expenses, such as the time a project takes to complete and the internal and external resources required to complete the job.
Once you’re ready to send your estimate, ensure you have accurate contact information for the key decision-maker. Additionally, communicate any estimate expiration dates.
What to include in an estimate.
Estimates are professional documents that can be created to suit any business needs. The key is to consider the most important details to record between your company and a customer.
While the information you include should reflect your exact business or project requirements, most estimate templates feature the following:
- Letterhead. Start with putting your professional foot forward. Include your company’s logo or official letterhead and all necessary contact information.
- Customer details. Customize the estimate template for each customer. Address the template to a specific person and company and include their contact information.
- Estimate number. Over time, you’ll likely create a large quantity of estimates, some for the same customer on a repeat basis. Use a unique identifying number to know which project is being referred to.
- Key dates. Include the issue date and the expiration date for the estimate. For more robust projects, consider including a timeline or completion dates for each line item.
- Line items. List each project component, naming the item and providing a detailed description.
- Responsible parties. If you are outsourcing any portion of the project, specify who is responsible for each line item’s completion.
- Quantities. Dedicate a column to the number of items included for each line item.
- Line costs. After you’ve detailed each item’s quantity, calculate the total cost for the line item.
- Subtotal costs. Calculate all of the included expenses to come up with a total.
- Taxes and fees. List these fees separately and include any descriptions.
- Total costs. Display the all-inclusive price for the project clearly so customers know exactly how much they need to budget.
- Terms and conditions. In addition to any expiration dates for the estimate, include legal language (provided by counsel) to protect you from misunderstandings with your customers. This inclusion can be helpful for any later discussions regarding inclusions and costs.
Does this list seem like a lot of information? No need to be overwhelmed. With the right estimate template, many fields and details can be ready to go when you need to create a new file.
Get your downloadable free estimate template and get started today.
What’s the difference between a quote and an estimate?
You may notice that estimates seem a lot like quotes. However, several differences exist when comparing the two.
An estimate is just what it seems — an approximation, or estimation, of what a project will probably cost. While customers can use estimates for budgeting purposes, your terms and conditions should clearly explain that these inclusions and costs could change depending on the final expenses incurred once the project is underway. Estimates are not fixed prices.
On the other hand, a sales quote holds a vendor accountable for the outlined pricing and inclusions. Consider the customer quoting what you said regarding costs and expecting to hold your business responsible for those words. While these documents may or may not be legally binding depending on the language and their jurisdiction, you should expect customers to argue any discrepancies between pricing on a quote and an invoice, which is the final bill.
Importantly, proposals are also different from estimates. Again, while an estimate template provides a rough idea of what is in a project and how much it costs, a proposal template will act more like a contract with specific, and presumably final, inclusions and pricing details.
Frequently asked questions.
How do I make my own estimates?
Using an effective free estimate template can help you get started with your own estimates. Then, customize your template with the right contact information and inclusions using Acrobat web tools. Consider which components are most important for you to include based on your business processes and customer expectations. The more details you provide in your estimates, the more clarity customers will have about what they will get for their money.
Does Google Docs have an estimate template?
Google Docs includes a limited library of templates that change over time. While the template gallery may not include an estimate, you can use any free estimate template developed by a third party and convert it for Google Docs use with Acrobat web tools.
Does Word have an estimate template?
Microsoft Word includes a limited library of online templates. While these online templates may not include an estimate, you can use any free estimate template developed by a third party and convert it for Word use with Acrobat web tools.
Does Excel have an estimate template?
Microsoft Excel includes a limited library of online templates, including proposals and cost tracking, that you can customize to create your own estimate template. However, an easier option may be to use an existing free estimate template from a third party and convert it using Acrobat web tools.
How do you format a construction estimate?
While estimation documents vary depending on business and project needs, a construction estimate should be formatted on company letterhead, include a logo, and detail the following information:
- Estimate number
- Key dates
- Line items
- Responsible parties
- Quantities
- Line costs
- Subtotal cost
- Taxes and fees
- Total cost
- Terms and conditions
Is there a free app for writing estimates?
Some free apps specifically cater to estimate creation. However, they simply provide a template for you to complete and store your data in their system. Creating your own estimate template may be more efficient. You can design a template once and reuse it for all customers while controlling your data. If you use accounting software for other tasks like invoicing, check whether the software includes estimate templates.
What is the easiest way to estimate?
Breaking a project down into individual parts via line items is the easiest way to estimate. You won’t miss accounting for an item or quantity within a project. An estimate template can also automatically calculate totals for costs, quantities, taxes, and total expenses.
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