These invoices provide relevant details so that customs officials can determine import duties on the shipment. Small business owners may especially find this to be valuable, as it helps them to manage their inventory while augmenting their overall sales process. Customers can rely on these documents to take stock of what they are receiving, as well as what they’re spending.
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Pro forma invoices are primarily informational.
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It's sent before the goods are delivered or before the services are rendered and reflects the final agreement accurately.Īlthough this type of invoice can be sent as a matter of professional courtesy, they serve a series of related purposes, including: Providing relevant details before delivery Simply put, this document establishes the terms of a sale. We even provide the means to monitor the status of your invoice so you’re never left out of the loop. With our innovative tools, you can create a template and send invoices to your clients through email, text message, or social media platforms. Looking for a shortcut for your business? You can use our online tools to create and send custom invoices in seconds. However, the pro forma protects the buyer from significant price jumps once the transaction is made final. In fact, the pro forma isn’t necessarily a guarantee of final costs, as prices may be subject to change. Since the pro forma is not a traditional invoice, it cannot be used for accounting purposes, nor is it a legally binding agreement. Therefore, a proforma might contain the following information:
This form will list the goods and services involved in the transaction, as well as offering a price quotation that will ideally match the finalized invoice. In other words, a pro forma invoice functions as a good-faith estimate of the final costs of goods and services.
From the Latin for “as a matter of form,” a pro forma invoice is intended to get all parties on the same page regarding the goods and services being rendered, as well as the price the buyer will be expected to pay. Instead, a pro forma invoice serves as a preliminary bill of sale.Ī pro forma invoice can be sent to a client before services are rendered or goods are delivered. Technically speaking, a pro forma invoice isn’t an invoice at all – at least not in the technical sense. In this article, we’ll take a deeper look at what proforma invoices include and how you can leverage them for your business. These documents reinforce your contract's terms of sale and can ensure mutual agreement between the buyer and the seller up to the time of delivery.
Looking to streamline the sales process of your business? Consider implementing pro forma invoices.
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