Invoices and quotes: a practical guide for NZ tradies.

Why good invoices and quotes matter

Late or unpaid invoices are one of the biggest cash flow problems small trades businesses face — chasing money you're owed costs you time you could spend earning more of it. A clear, professional invoice sent promptly gets paid faster than a scribbled note or a text message with a dollar figure in it.

Quotes matter just as much, but earlier in the job. A detailed, professional quote is often the deciding factor when a homeowner is comparing you against two other tradies — it signals you run a legitimate, organised business. And a clear scope of work with an itemised price in writing is your best protection against the classic dispute: "that's not what we agreed to." If it's on the quote, there's nothing to argue about.

Invoice promptly — ideally the same day you finish the job, or in stages for a longer project. The longer you wait to send an invoice, the longer you wait to get paid, and homeowners are far more likely to query a bill that turns up three weeks after the work was done than one that lands the next morning.

What makes a compliant NZ tax invoice

GST in New Zealand is currently 15%. What has to appear on your invoice depends on how much you're charging — Inland Revenue uses a tiered system, and the requirements stack as the amount goes up:

Under $200

The basics: your business/trading name, the date, a description of what you supplied, and the amount charged.

$200 to $1,000

Everything above, plus your GST number (if you're GST-registered) and the GST amount shown separately.

Over $1,000

Everything above, plus the buyer's name and address.

Only put a GST number on your invoice if you're actually GST-registered. Registration becomes compulsory once your turnover passes $60,000 in a 12-month period, but you can register voluntarily earlier than that if it suits your business.

Charging GST — or adding a GST number to your invoices — when you are not registered for GST is a serious offence under NZ tax law. Don't do it, even by accident.

Whatever you invoice, keep a copy. Inland Revenue requires you to retain business records, including invoices, for 7 years. You don't need expensive software to manage this — a simple numbered invoice template, whether it's a spreadsheet or a proper accounting app, is enough as long as every invoice is dated, numbered sequentially, and kept somewhere you can find it again years later. Cloud accounting tools back everything up automatically, which turns the 7-year rule into a non-issue rather than a filing-cabinet headache.

Writing good quotes

A strong quote does four things well. First, it sets out a clear scope of work — exactly what you will and won't do, so there's no confusion later about what was included. Second, it itemises the price rather than giving one lump sum — homeowners trust a breakdown, and it makes it easier to agree on changes if the scope shifts.

Third, state how long the quote is valid for — 30 days is common. Materials prices move, and you don't want to be locked into a six-month-old price. Fourth, be explicit about deposit and payment terms: how much deposit is required to secure the job, and when the balance is due — on completion, or in stages for a larger job.

Finally, know the difference between a fixed quote and an estimate. A quote is a firm price you're committing to for the scope described — if you go over, that's usually on you, unless the scope changes. An estimate is a ballpark figure that can move once you're into the job and see what's actually involved. Label which one you're giving in writing, every time, so there's no confusion about who wears the risk of a price change.

And always get the quote accepted in writing before you start work — an email reply, a signed copy, or even a simple "yes, go ahead" text message is enough. A verbal "yeah, sounds good" over the phone leaves you with nothing to point back to if the homeowner later disputes the price or what was included.