In the business world, the term proforma comes up regularly, especially in administration, accounting and sales processes. But what exactly is a proforma, when do you use it, and how do you make sure you organise this process efficiently?
What is a proforma?
A proforma is a preliminary or non-binding invoice prepared before the actual delivery of products or services. It is intended to give the customer an advance insight into the expected costs, without official invoicing yet. You can think of it as an offer in invoice form.
Proforma documents are often used:
- In international trade, to simplify customs clearance procedures.
- In quotation systems, as an intermediate step towards a real invoice.
- To seek prior agreement on a quote.
- When customers need to make an upfront payment.
How is it different from a real invoice?
Although a proforma is similar to a regular invoice, there are a few key differences:
- A proforma is not an official accounting document.
- There is no payment obligation yet.
- No VAT payment is required (VAT can be mentioned but does not have to be accounted for).
Proforma in practice: working efficiently with Trifact365
Preparing a proforma can be a recurring task, especially within organisations that work a lot with quotations or international customers. To streamline this process, more and more companies are using digital tools. TriFact365 is not yet suitable for this purpose.
When a final invoice is received, TriFact365’s integration with existing accounting or ERP systems can help reduce manual operations, errors and delays. This leaves you time for what really matters: your customers and your core business.
