There are dozens of reasons why you’d want to use this type of invoice for your business, and they include but are not limited to: However, it can help your project go along more smoothly because everyone will have the same expectations. It’s essential that you know that your pro forma invoice isn’t a true VAT invoice though. It helps everyone get on the same page for expectations, and it also gives your customers time to organize their finances so they can pay your invoice when it comes through.
It’s a short heads up before you send the normal invoice for payment, and it can help your customers from being blindsided by the price or duration of the project. This document will let your clients know exactly what services or products you’re going to deliver, your timeline for delivering said goods or services, and how much the project will end up costing your customers. Basically, it acts as a precursor to your official invoice. However, you want to ensure that everyone is on the same page once you work out all of the finer details that come with negotiating a new contract. 6 Looking for Downloadable Invoice Templates? Understanding a Pro Forma InvoiceĪs a seller or business owner, getting clients, negotiating the working relationships terms, and deciding on a price all common business practice.
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