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How to create a quote in Xero

If you provide services in a competitive market, there are many factors that can contribute to your potential success.

One factor that stands out is the quote you provide to potential clients.

Is it competitive enough? Does it include all the details of the services you provide?

And do you ensure that there are no hidden costs? 

Knowing how to create a quote, and what tools to use, can mean the difference between a business surviving or thriving. 

Quote templates can make the entire process more efficient, and using a tool such as Xero to build a quote can streamline it further.

We’ll look at how to create a quote in Xero, starting with the most important question—what is Xero? 

What is Xero?

Xero is a cloud-based accounting software solution that offers a wide range of functions for small businesses. 

It can help you with payroll and invoicing for your business and you can also connect it to a live feed from your bank.

Thanks to its flexibility, you can also use it when making a quote to potential clients. 

How does Xero work?

Once you’ve signed up to Xero, you can then connect your bank accounts and make important decisions such as whether to accept electronic transfers for online invoices generated by the software. 

Xero makes suggestions that help when reconciling your accounting books such as matching invoices with deposits or transfers to your account(s). 

You can choose to use Xero’s default charts, customize it according to your needs, or import your existing charts (you can also import existing lists of clients and suppliers). 

Knowing how to make quotes in Xero means you can send them an online quote which they can accept with a single click.

This also then links to your invoicing so you can send invoices when needed and they can pay online with another click. 

Important details to add when creating quotes

When making quotes using Xero, there are important details that should feature every time. 

Quotations details should include:

  • The name, address, and contact details of your business
  • Identity of primary contact person in case of questions
  • The client’s name (or business name), address, and contact details
  • A unique quote identifier number
  • The date the quote was issued 
  • The date the quote details will expire 
  • A full description of the products or services being quoted on, including relevant details such as proposed delivery date(s), shipping methods, etc. 
  • Total costs of what is being provided including a breakdown (where relevant) that includes any factors such as shipping costs 
  • Any special cost details such as deposit or when total payment would be due by. 

Steps to create a quote in Xero

You will find that creating a quote in Xero is quite intuitive and straightforward, and once you’ve created your first quote, it will become easier and easier. 

The great thing about using Xero to build a quote is that it links all your accounting features together so you have a more integrated workflow.

Knowing how to create a quote online can make a huge difference to your business. 

Creating a quote with Xero should follow this roadmap:

  • Select “Quotes” from Xero’s business menu
  • Click “New”, then select “New quote” (unless you have an existing template you want to reuse) 
  • Pick a client from your imported clients list or add a new client if applicable 
  • If there is an existing template for that client, choose that
  • Name or number your quote for easy reference by you or your client
  • If relevant, type a description of what you are quoting on and whether the client has stated an approximate budget. If the quote is accepted, you can use this same description as the job description. 
  • Insert the date the quote is/was issued and also when the quoted figures will expire
  • If applicable, add details of any options included in the quote 
  • Click “Next” in the menu and choose any relevant details such as tax rates or pricing modes 
  • Add full details of what you are quoting on. This can include all products or services being offered, any additional costs such as shipping, and any options the customer can choose from. 
  • You can now choose to save the quote (for now) or immediately issue it 
  • If you think you may reuse the quote—or most of its elements—then you can save it as a template. 
  • To save as a template, go to the business menu and click on “Quotes” 
  • You will then see the quote you have just created so click on it and then use options and “Save quote as template”. 

Simple as that process is, things can be even easier.

PandaDoc’s quoting features make it quick and intuitive to build and close new deals.

And you can even use Zapier to integrate PandaDoc with Xero and get the best of both worlds. 

Easily create quotes on Xero through integration

As well as easily connecting Xero to your bank accounts, you can also integrate it with existing tools you’re already using.

This means you can automate repetitive tasks such as sending regular invoices and thus have better—and more efficient—workflows across all areas of your business including finance. 

Bringing increased efficiency to your business means that you can perform better and can increase customer satisfaction.

By learning how to create a quote in Xero—and combining it with other tools—you make it easier to provide timely and accurate quotes that can win new business. 

PandaDoc offers you a wide range of business-related templates and other solutions that can make your life easier.

Why not check out what PandaDoc offers and try out a 14-day free trial now