In the world of business and international trade, the proforma invoice is one of the most critical documents used before finalizing a sale. Whether you’re a , a small business owner, or a large enterprise, understanding what a proforma invoice is—and how to use one effectively—can help you maintain transparency, accelerate deals, and manage client expectations.
In this blog post, we’ll dive deep into what a proforma invoice is, when you should use it, and how to easily create one using tools like Invopilot and its invoice generator.
What Is a Proforma Invoice?
A proforma invoice is a preliminary bill of sale sent to buyers before a product or service is delivered. It outlines the details of the transaction—such as the price, quantity, delivery terms, and more—so the buyer can approve the information before proceeding.
Unlike a commercial invoice, a proforma invoice is not a demand for payment. Instead, it’s a quote in invoice format, often used for customs purposes and international shipments.
Key Features of a Proforma Invoice
Estimated pricing: The amounts listed may be adjusted in the final invoice.
Itemized details: Includes description, quantity, unit price, taxes, shipping costs, and total cost.
Seller and buyer information: Includes business names, addresses, and contact details.
Date and reference number: For record-keeping and easy tracking.
Terms and conditions: Optional but helpful for clarifying payment and delivery terms.
When Should You Use a Proforma Invoice?
Here are the most common scenarios when a proforma invoice is essential:
International trade: Customs authorities often require a proforma invoice to estimate duties and taxes before shipping.
Client approval: Before starting work or shipping products, many businesses send a proforma invoice to get written confirmation.
Internal documentation: Companies may use proforma invoices for internal purchase approval processes.
Advance payment requests: If you’re requesting partial payment upfront, a proforma invoice serves as a professional quote.
Proforma Invoice vs. Commercial Invoice
While they may look similar, a proforma invoice is not legally binding and does not get recorded in the books of accounts. In contrast, a commercial invoice is issued after a product is shipped or a service is rendered and serves as the final bill for payment.
| Feature | Proforma Invoice | Commercial Invoice |
|---|---|---|
| Purpose | Quotation | Request for Payment |
| Legally Binding? | No | Yes |
| Used for Customs? | Yes (preliminary) | Yes (final) |
| Records in Accounting | No | Yes |
How to Create a Proforma Invoice in Minutes
Manually creating proforma invoices in Excel or Word can be time-consuming and error-prone. That’s where tools like Invopilot come in handy.
Why Use Invopilot?
Invopilot is a powerful invoicing platform designed for modern businesses. It offers:
Professional templates for proforma invoices
Custom branding with your logo and business details
Easy tax calculations
PDF format
Fast sharing options (email or direct link)
Secure cloud storage and history tracking
Even better, if you want a quick and way to generate a proforma invoice, try the Invoice Generator by Invopilot. It’s user-friendly and doesn’t require you to sign up to get started.
Step-by-Step Guide to Creating a Proforma Invoice
Here’s how to use the Invopilot invoice generator to create your proforma invoice:
Choose “Proforma Invoice” from the invoice type dropdown
Fill in your business details and the client’s information
Add products or services with descriptions, quantity, and prices
Include any taxes or shipping costs
Preview your invoice
share it instantly as a professional PDF
This simple tool saves time and ensures your invoice looks clean and accurate.
Benefits of Using a Proforma Invoice
Creating and sending a proforma invoice provides several key advantages:
✅ Clarifies pricing and scope before a transaction begins
✅ Reduces the chance of disputes or misunderstandings
✅ Helps speed up approvals from clients or purchasing departments
✅ Assists with customs declarations in international shipping
✅ Establishes professionalism and improves client trust
If you’re not using proforma invoices in your business yet, you’re missing a vital step that can streamline communication and enhance cash flow.
Best Practices for Proforma Invoices
Be clear and detailed: Always include all relevant costs and terms.
Use consistent formatting: Stick to a professional template for branding.
Include an expiration date: Indicate how long the quoted prices will be valid.
Follow up: After sending, follow up to confirm the client received and approved it.
Transition smoothly: Once approved, convert your proforma into a commercial invoice using tools like Invopilot.
Final Thoughts
A proforma invoice is more than just a fancy quote—it’s a strategic document that sets the stage for smooth business transactions. Whether you’re dealing with clients locally or shipping goods globally, proforma invoices offer clarity, transparency, and professionalism.
If you want to create fast, clean, and branded proforma invoices without the hassle, try Invopilot’s Invoice Generator today. It’s completely to use and optimized for , startups, and SMEs who want to get paid faster and work smarter.
For more invoicing features like recurring invoices, automatic tax calculations, and client portals, visit Invopilot—the smart way to manage your billing.
Ready to create your first proforma invoice?
👉 Try it now: https://invoice-generator.invopilot.com/
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