You’ve quoted a job, the client’s agreed, but you want payment upfront before starting work. Do you send an invoice? Not quite — you send a pro forma invoice. It looks like an invoice, acts like a formal quote, but isn’t the same as either. Here’s when and why to use one.
What Is a Pro Forma Invoice?
A pro forma invoice is a preliminary document that shows what a client will owe once the sale is confirmed. It’s essentially a “preview” invoice — same format, same details, but it’s not a demand for payment in the accounting sense.
The term comes from Latin, meaning “for the sake of form” or “as a matter of form.” It has the form of an invoice without the legal status of one.
Pro Forma vs Regular Invoice
The key differences:
| Pro Forma Invoice | Regular Invoice |
|---|---|
| Sent before goods/services delivered | Sent after goods/services delivered |
| Not recorded in your accounts | Recorded as income |
| Not a legal demand for payment | Legally demands payment |
| Client can’t use it to reclaim VAT | Client can reclaim VAT |
| Often used to request advance payment | Confirms a completed transaction |
Once the client pays a pro forma (or you deliver the goods/services), you then issue a proper invoice to make everything official.
When to Use a Pro Forma Invoice
Requesting payment before you start work. Common for large projects, new clients, or custom orders. The pro forma shows exactly what they’re paying for before money changes hands.
International sales and customs. Shipping goods abroad often requires a pro forma for customs declarations, showing the value of goods before they arrive.
Providing a formal quote. When a client needs something more official than an email quote — perhaps for their own budget approval — a pro forma looks professional and provides all the details.
Reserving stock or materials. If a client wants to secure items before paying, a pro forma confirms the order and price while you hold the goods.
Giving clients something for their records. Some businesses need documentation before approving purchases internally. A pro forma ticks that box without triggering your accounting.
What to Include
A pro forma invoice should contain the same information as a regular invoice:
- Your business name and address
- Client’s name and address
- Date
- Description of goods or services
- Itemised prices
- Total amount (including VAT if applicable)
- Payment terms and bank details
Crucially, add these words clearly at the top: “Pro Forma Invoice” or “This is not a VAT invoice.” This prevents confusion — yours, theirs, or HMRC’s.
You can use a reference number, but don’t use your regular invoice numbering sequence. Pro formas shouldn’t appear in your invoice records. Some businesses use a separate sequence (PF-001, PF-002) or simply date-based references.
What Happens Next
Once the client pays (or you deliver), issue a proper VAT invoice. This is the one that:
- Goes in your accounts
- Gets reported on your VAT return
- Allows the client to reclaim VAT
- Uses your proper invoice number sequence
Reference the pro forma on your final invoice if helpful: “As per pro forma PF-001 dated 15 January 2026.”
Common Mistakes
Using pro formas as real invoices. If you never issue a proper invoice, your accounts are incomplete and you’re not reporting income correctly.
Forgetting to follow up. A pro forma paid but never converted to an invoice creates accounting gaps. Track your pro formas and close them off properly.
Confusing clients. Make it crystal clear whether you’re sending a pro forma (for information) or an invoice (for payment). Ambiguity causes delays and frustration.
Used correctly, pro forma invoices help you secure payment upfront, provide professional documentation, and keep everything clear — before the real invoice even exists.
Always follow a paid pro forma with a proper VAT invoice for your records.