Skip to content
BizBinder
Early access open Get early access

Invoicing

Pro Forma Invoice

The short answer

A pro forma invoice is a preview of an invoice sent before the work is done or the real invoice is issued — it shows what a client will owe, but it isn’t a bill yet. Use it to confirm a price before you start, not to record money as owed.

What it means

It looks almost identical to a real invoice — same line items, same total — but it’s a heads-up, not a demand for payment. Clients sometimes ask for one before approving a purchase internally, or before wiring a deposit on a bigger job, so their own accounts team has a number to sign off on first.

The distinction that matters: a pro forma invoice creates no obligation and isn’t tracked as money owed. Don’t number it in the same sequence as your real invoices, and don’t record it as revenue — it becomes a real invoice, with its own number, only once the client’s actually confirmed and the work is underway or done.

For example

A commercial client asks for a pro forma invoice for a $2,400 fit-out before their office manager will sign off. You send one marked “Pro Forma — Not a Tax Invoice.” Once it’s approved, you send the real invoice with a fresh invoice number.

The mistake to avoid

Sending a pro forma invoice using the same numbering as your real invoices — which makes your invoice sequence look broken later, since a number that was never actually billed appears to be missing.

See also

Want this handled automatically?

BizBinder keeps quotes, invoices, deposits, and reminders in one binder, so using the right term is the least of it — the underlying habit runs itself.