![]() This will be what your client refers to when making a payment. Then, once you are ready for the project to start, you can send a standard VAT invoice. It ensures that all details are tied away and ready for the work to start. 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. Inform them of the payment due date and terms.Let them know of your accepted payment methods.Send them a statement of how much services or goods will cost.Outline the services being provided by your business.Notify clients of product delivery dates and details.There are many reasons for using a proforma invoice for your business. This will just make the project go more smoothly. Note that a proforma invoice is not a true VAT invoice.īefore 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. It also gives them time to figure out their financials in preparation for paying you for your services. Sending a proforma invoice can be nice because it lets your clients know what to expect. It can also allow your clients to issue advance payment for services rendered, with the actual invoice to follow. Pro forma invoices are a great way of keeping everyone on the same page and making sure that you get paid correctly, without any misunderstandings. In other words, it is a “heads up” before they are faced with sending payment. 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. Once you work out the finer details, however, you need a way to confirm that everyone is on the same page.Ī proforma invoice is a precursor to the official invoice. You have probably heard of good, old-fashioned invoice, but what is a “proforma invoice”?Īs a small business owner, you are familiar with the process of onboarding your clients, negotiating terms and finally deciding on a price.
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