What is an estimate in QuickBooks Online?

An estimate in QuickBooks Online is essentially a quote provided to a customer detailing the potential costs associated with a particular job or project. It serves as a preliminary agreement that outlines the expected work and associated costs before any services or products are rendered. This is crucial in helping customers understand what to expect in terms of pricing, allowing them to make informed decisions regarding the proposed work.

In contrast, the other options describe different elements of business transactions or documentation. A formal job contract is a binding agreement that typically includes more legal language and terms than an estimate. A record of completed projects pertains to documentation that tracks work that has already been finished, which is beyond the scope of estimating future costs. An invoice, on the other hand, is a billing statement presented to a customer after services are rendered or products are delivered, signifying that the work is completed rather than prospective. Thus, the essence of an estimate is to provide customers with an advanced indication of costs, making the second choice the correct identification of its purpose in QuickBooks Online.