How to Create a Professional Proforma Invoice That Wins Clients

A proforma invoice is a preliminary bill of sale sent to a client before work begins or products are shipped. It outlines the key details of a transaction so the buyer knows exactly what to expect.

Creating proforma invoices is an important process for many businesses. Done right it builds trust with clients prevents disputes, and sets projects up for success.

In this comprehensive guide, we’ll walk through the ins and outs of making proforma invoices from start to finish. Follow these steps and best practices to craft professional preliminary invoices that impress clients and win their business.

What is the Purpose of a Proforma Invoice?

Before diving into creating proformas, it’s important to understand why businesses use them in the first place.

The main purposes of a proforma invoice include:

• Giving clients a detailed overview of an order before formally requesting payment
• Confirming the exact products/services, quantities, prices and terms for a transaction
• Allowing the client to thoroughly review and approve all details before proceeding
• Streamlining customs and tax procedures for international shipments
• Satisfying a client’s internal purchasing processes that require advance documentation

Proforma invoices set clear expectations between buyer and seller. This prevents unexpected surprises or disputes down the line that can derail projects.

Now let’s look at how to make professional preliminary invoices.

1. Include Your Business Information

Start by putting your company information and branding elements on the proforma invoice. This includes:

• Your business’ name, address, email, phone number and logo
• Invoice number (proforma invoices should have their own numbering sequence)
• Issued date

Formatting this information cleanly at the top of the document looks professional and builds credibility.

2. Enter Client Details

Next, include the client’s information so it’s clear who the proforma invoice is for:

• Client name and contact person
• Client company name and address
• Client email and phone number

Make sure this information is accurate to send the proforma invoice to the right decision maker.

3. Provide an Itemized Description of Products/Services

Now comes the key part – itemizing what you’ll be providing. Include:

• Name and description of each product/service
• Quantity being provided
• Unit price and total price for each line item
• Total quantities and amounts

This level of detail eliminates ambiguity about exactly what is included in the deal.

4. Specify Payment Terms

To prevent payment issues down the road, your proforma invoice should clearly state:

• Due date – When is payment expected?
• Payment methods – How can the client pay the invoice?
• Payment terms – Net 30? Net 15? Deposit required? Be specific.

Spelling this out now avoids misunderstandings when it comes time to get paid.

5. Set the Total Amount Due

Add up the line items and clearly specify the total amount due, including:

• Subtotal amount for all line items
• Any discounts, taxes, fees etc to be applied
• Final total due

This allows the client to clearly see the full pricing picture.

6. Include Relevant Dates

To keep the project timeline clear, call out important dates like:

• Issue date – When was the proforma sent?
• Validity period – How long are the terms valid for?
• Delivery/Performance date – By when will products be shipped or services rendered?

7. Specify Proforma vs Final Invoice

Since proforma invoices look similar to commercial invoices, include verbiage like “Proforma Invoice” and “This is not a final invoice” on the document.

This prevents confusion and clearly sets expectations that this is a preliminary estimate, not a payment request.

8. Add Company Terms

Include any standard business terms and conditions that apply. This ensures the client understands important company policies like cancellation fees, return policy, liability limits, etc.

9. Include Signatures

Once the proforma invoice is 100% ready, add signature fields for:

• Your name and signature
• Client representative name and signature

This documents mutual agreement to the terms.

10. Format Professionally

Take time to ensure your proforma invoice looks professional and polished.

• Use your standard business branding
• Organize information clearly
• Free from typos and errors
• Easy to read font and spacing

This makes a strong impression and builds client confidence.

Helpful Tools to Create Proforma Invoices

Crafting detailed proforma invoices from scratch can be time consuming. Fortunately, there are tools that make it fast and easy:

• Invoice software – Solutions like Freshbooks provide customizable proforma invoice templates that do the heavy lifting.

• Microsoft Excel templates – Download pre-made proforma templates for Excel that you can edit and customize.

• Proforma invoice generators – Web-based tools like InvoiceSimple allow you to quickly generate proformas in just a few clicks.

Leverage these timesaving solutions to produce polished, professional preliminary invoices that compliance departments and international customs agents will approve.

When Should Proforma Invoices Be Sent to Clients?

Timing is important when issuing proforma invoices. Here are best practices on when to send them:

• After price negotiation – Send the proforma once you’ve agreed with the client on pricing and terms so it accurately reflects the deal.

• Before production/shipping – Make sure the client receives and approves the proforma before you deliver products or begin work.

• Upon purchase order receipt – If you receive a PO, send a proforma to confirm all the details.

• Per the client’s request – Some clients specifically request proformas as part of their purchasing process.

The key is to provide the preliminary invoice once details are confirmed but before officially taking the order. This sets projects up for smooth sailing.

Get Paid Faster with Professional Proforma Invoices

Taking the time to create detailed preliminary invoices pays dividends in winning new business and keeping clients happy. They act as your secret sales weapon!

Follow this 10-step guide and leverage handy templates to craft proformas that impress every time. Before you know it, you’ll have prospects eagerly signing off so you can deliver an amazing product or service.

Now that you’re a proforma pro, you can spend less time creating invoices and more time growing your business. Just remember to send a professional final invoice when the job is complete to get paid quickly.