Free Proforma Invoice Template
Proforma Invoices for Small Businesses
You have probably heard of good, old-fashioned invoice, but what is a “proforma invoice”?
As a small business owner, you are familiar with the process of onboarding your clients, negotiating terms and finally deciding on a price. Once you work out the finer details, however, you need a way to confirm that everyone is on the same page.
A proforma invoice is a precursor to the official invoice. It lets your clients know ahead of time what services are being delivered, when they will be completed and how much the project is going to cost. In other words, it is a “heads up” before they are faced with sending payment.
Sending a proforma invoice can be nice because it lets your clients know what to expect. It also gives them time to figure out their financials in preparation for paying you for your services. Note that a proforma invoice is not a true VAT invoice.
Before you send the official invoice, consider sending a proforma invoice in order to make sure that your client is prepared for the work you are doing. This will just make the project go more smoothly.
There are many reasons for using a proforma invoice for your business. You can use a proforma invoice to:
- Notify clients of product delivery dates and details
- Outline the services being provided by your business
- Send them a statement of how much services or goods will cost
- Let them know of your accepted payment methods
- Inform them of the payment due date and terms
- Declare the value of goods for customs
Using a proforma invoice may be a good idea if you are in the process of sending goods to customers or are finalizing your fees for your services. It ensures that all details are tied away and ready for the work to start.
Then, once you are ready for the project to start, you can send a standard VAT invoice. This will be what your client refers to when making a payment. Until then, a proforma invoice will do the trick in getting everything else squared away.
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