What is the purpose of an estimate in QuickBooks Online?

An estimate in QuickBooks Online serves as a preliminary document that outlines potential costs for services or products before they are provided to the customer. This tool is essential for businesses as it helps both the service provider and the client to understand the projected costs involved in a project or job. By creating an estimate, business owners can set expectations, facilitate discussions regarding pricing, and allow for any adjustments to be made before the actual work begins. This proactive approach can enhance customer satisfaction by providing transparency about potential expenses.

In context, summarizing past sales, documenting final transactions, or managing customer payments are functions that pertain more to sales records and transactions that have already been completed, rather than prospective costs which the estimate addresses. Thus, the primary intent of an estimate is to give an idea of what the costs will be, enabling better decision-making for the customer and helping businesses plan their resources accordingly.