Proforma Invoice

What is a proforma invoice?

“Pro forma” is Latin for “as a matter of form”. A proforma invoice is laid out like a real invoice, with your business, the customer, the lines, tax and a total, but it is sent before the work or the sale. It tells the customer: this is what you will be billed if we go ahead.

It is not a request for payment and it is not a sale in your books. Once the work is done you send a normal invoice for the actual amount.

Exporters use proforma invoices so a buyer can arrange import permits or a letter of credit. For a local service business the usual reasons are simpler:

• A homeowner needs the expected total in writing for a lender, insurer or landlord.
• A business customer needs a document their manager or accounts team can approve before work starts.
• You want a deposit before you order materials, and the customer wants to see exactly what it is for.

Proforma invoice vs invoice vs quote

Plenty of service businesses never need a proforma: a signed estimate does the same job. Use a proforma when someone asks for an “invoice” before the work, so you do not issue a real invoice too early.

Proforma invoice template: fill it in online

Fill in the left side. The proforma on the right updates as you type, with each line worked out as quantity × rate.

Press Print or save as PDF and choose Save as PDF in the print window.

Download the proforma invoice template (.docx)

The Word file opens in Microsoft Word, Google Docs (File, Open, Upload) and LibreOffice. It is marked “Not a demand for payment” in the header and has a terms block you can edit, plus a signature line so the customer can accept on paper.

What to include on a proforma invoice

• The words “Proforma invoice” at the top, so nobody pays it or files it as a bill by mistake.
• Your business details and any tax or business number you normally show.
• Who it is for and the job or delivery address.
• A proforma reference and the date issued.
• A Valid until date. Material prices move, so do not leave it open.
• Each expected line with quantity, rate and amount, and the expected tax.
• The estimated total and any deposit you want before you start.
• How the customer accepts, such as a signature or a written reply.

Proforma invoice example

A renovation crew is asked for an “invoice” so the homeowner can get financing approved. Instead of a real invoice, they send proforma PF-1001, valid for 30 days:

A 30% deposit is $2,165.40 × 0.30 = $649.62. When the job is finished, the crew sends invoice 1043 for the actual amount, say the job took 9 hours: $2,005 + $85 = $2,090.00 + 8% tax $167.20 = $2,257.20, minus the $649.62 deposit, balance due $1,607.58. The 8% rate is only an example; use the rate that applies to you.

How to make a proforma invoice, step by step

1. Download the template or use the maker. Download proforma-invoice-template.docx, or fill in the proforma maker on this page and save a PDF.
2. Give it a proforma reference. Use a number like PF-1001, separate from your normal invoice numbers.
3. Fill in the customer and the job. Add who it is for, the job or delivery address and the expected start or delivery date.
4. List the expected lines. Enter each expected item: labour, materials, fees, with quantity and rate. Add the tax you expect to charge.
5. Set the terms. Add a Valid until date, any deposit you want before starting and how the customer accepts.
6. Send it, then invoice for real. Send the proforma as a PDF. Once the work is done, send a final invoice for the actual amount, minus any deposit.

In BrickByClick Starter ($99 a month) you send an estimate the customer accepts online, send a deposit invoice they can pay by card or bank, and the full invoice later credits the deposit. To just send invoices and take card payments, BrickByClick Free is $0 a month.

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