How to convert a quotation to an invoice in New Zealand

Converting a quotation to an invoice is a key step for New Zealand small businesses to move from offering prices to requesting payment. This article explains why this process matters, provides clear steps to convert a quotation to an invoice, a detailed example with NZD figures, common mistakes to avoid, and how HelloGrowthCRM helps manage quotations and invoices efficiently.

Why this comes up / what goes wrong

Small business owners in New Zealand frequently send quotations to potential customers to outline prices and services. Once the customer accepts the quotation, the business must issue an invoice to request payment. Problems occur when quotations are not clearly converted into invoices, causing delays, confusion over pricing or GST, or lost sales. Managing quotations and invoices separately or manually on spreadsheets or emails can lead to errors, missed follow-ups, or duplicated effort.

Sales teams running their process on text messages, email, and spreadsheets often lose track of the quotation status and fail to issue invoices promptly. This slows down cash flow and frustrates customers.

Step-by-step

1. Confirm quotation acceptance

• Verify the customer has accepted the quotation in writing, by email, or verbally with confirmation.
• This acceptance authorises you to proceed with invoicing.

1. Review the quotation details

• Check the quotation for accuracy: item descriptions, quantities, unit prices, discounts, and GST components.
• Confirm the customer’s contact and billing details are correct.

1. Create the invoice

• Use the same customer details as on the quotation.
• Reference the quotation number or date on the invoice for clarity.
• List all items and prices exactly as per the quotation.
• Calculate GST if applicable (standard rate is 15% in New Zealand). Show GST as a separate line.

1. Check totals and payment terms

• Confirm the invoice total matches the quotation total plus GST.
• Add payment terms such as due date (e.g., 14 days from invoice date) and accepted payment methods.

1. Issue the invoice

• Send the invoice to the customer by email or post.
• Keep a copy for your records.

1. Follow up on payment

• Track the payment status and send reminders if payment is overdue.

1. Record payment

• Once payment is received, mark the invoice as paid in your records.

Using a system that links quotations and invoices on the same screen helps avoid losing track of documents or delays in issuing invoices.

Example (fictional figures)

An electrical contractor in Wellington sends a quotation on 15/03/2024 for installing lighting in a commercial office.

Quotation details:

• 20 LED lights at NZ$150 each
• Labour charge NZ$500

Step 1: Calculate goods total: NZ$150 × 20 = NZ$3,000

Step 2: Add labour charge: NZ$3,000 + NZ$500 = NZ$3,500

Step 3: Calculate GST (assumed illustrative rate 15%): NZ$3,500 × 15% = NZ$525

Step 4: Total invoice amount: NZ$3,500 + NZ$525 = NZ$4,025

The invoice lists:

• 20 LED lights NZ$3,000
• Labour NZ$500
• GST NZ$525
• Total NZ$4,025

The invoice is dated 20/03/2024, referencing quotation dated 15/03/2024, with payment due in 14 days.

Common mistakes

• Issuing an invoice before confirming quotation acceptance: Prevent this by getting clear acceptance in writing or email.

• Mismatch between quotation and invoice amounts: Double-check all figures before sending to avoid disputes.

• Omitting GST or calculating it incorrectly: Use the correct GST rate and show GST as a separate line item.

• Not referencing the quotation on the invoice: Always include the quotation number or date on the invoice for easy tracking.

• Losing track of document status: Use a CRM or system that shows quotation and invoice status together.

• Delaying invoice issuance after acceptance: Send invoices promptly to keep cash flow steady.

Using a CRM with integrated quoting and invoicing features can help avoid these mistakes by keeping all information in one place.

Doing this in HelloGrowthCRM

HelloGrowthCRM includes built-in quoting and proposal tools that let you create, send, and track quotations directly from a deal record. You can see the quotation status (sent, viewed, accepted) on the same screen as follow-up tasks. When the deal closes, you can generate an invoice tied to that deal and record payments received. This keeps your sales process organised without switching screens. Learn more about WhatsApp and SMS CRM and the built-in CRM dialer for streamlined sales communication.

Frequently asked questions

Can I convert a quotation to an invoice manually? Yes, you can manually create an invoice by copying the quotation details: item descriptions, quantities, prices, and GST. Follow the step-by-step instructions above to ensure accuracy.

Do I need to include GST on the invoice if the quotation had it? Yes, if the quotation included GST, the invoice must also show GST separately at the applicable rate, typically 15% in New Zealand.

What if the customer wants to change the quotation before invoicing? Update the quotation to reflect any agreed changes. Then issue the invoice based on the updated quotation details.

Is it legal to issue an invoice without a prior quotation? You can issue an invoice without a prior quotation, but having a quotation helps avoid disputes about pricing and terms.

How can HelloGrowthCRM help streamline this process? HelloGrowthCRM lets you manage quotations, proposals, invoices, and payments from the same deal record. It shows quotation status alongside follow-up tasks, helping your team stay organised and reduce errors.

Key takeaways

• Confirm customer acceptance before issuing an invoice.
• Use the exact quotation details on the invoice, including GST.
• Reference the quotation number or date on the invoice.
• Issue invoices promptly and track payments carefully.
• Avoid errors by double-checking amounts and GST calculations.
• HelloGrowthCRM helps manage quotations and invoices from one screen.

Start managing your quotations and invoices efficiently today. Start on the Free Forever plan (200 leads, no credit card).