What Is a Proforma Invoice?

A proforma invoice is a preliminary bill sent before work starts or goods ship. It shows what the final invoice will contain: the items, quantities, prices, taxes and payment terms. In most cases it is a good-faith estimate rather than a demand for payment, and you don't record it as a sale in your books.

Freelancers and small businesses send one when a client needs a priced document before committing. A client's finance team may need to approve the spend before raising a purchase order. Or you may want payment in advance before you book the time.

A proforma sits between a quote and an invoice. A quote offers a price the client can accept or decline. A proforma confirms the agreed price in invoice form. The real invoice follows once the work is delivered, and that is the document your client pays against and the one you keep for tax.

In SolidInvoice, you send a quote, the client approves it online, and it converts to an invoice without retyping the line items.