It usually happens during the negotiation phase. A client says: "Can you send over a proforma invoice so we can get the budget approved?"
If you’ve only ever sent final invoices, this can be confusing. Is it a bill? Is it a quote?
1. The Definition
A Proforma Invoice is a "Preliminary" invoice. It looks exactly like a standard invoice but is sent before the work is done or the goods are shipped. It acts as a formal "Good Faith" agreement of what the final bill will look like.
2. Proforma vs. Quote
- A Quote is an estimate. It says: "This is roughly what I will charge."
- A Proforma Invoice is a commitment. It says: "This IS what I will charge."
Clients use proforma invoices to get internal approval from their finance teams or to apply for import/export licenses. It is especially common when invoicing international clients.
3. Proforma vs. Final Invoice
A proforma is NOT a demand for payment. It is not recorded in your bookkeeping as "Accounts Receivable." Once the work is delivered, you must still send a Final Invoice (the one that actually triggers the Net 30 or Net 15 timer).
Frequently Asked Questions (FAQ)
Should I sign a proforma invoice?
Yes, you should sign it and date it. This makes it an "Official" document that the client can use for their internal bureaucracy.
Can the price change after I send a proforma?
Technically, yes, but it’s bad for business. If the scope of work changes significantly, you should issue a revised proforma. Use our Contract Scanner to ensure your "Scope Change" clauses allow for these adjustments.
Do I need a separate template for proforma invoices?
No. You can use our Standard Invoice Maker and simply change the title from "INVOICE" to "PROFORMA INVOICE." This maintains your professional branding throughout the sales process.