The request usually arrives in a short email from someone you have never met: "Can you send a proforma so we can raise the PO?" The client has agreed to hire you. Now their purchasing system needs a document that looks like an invoice, carries your legal details and shows the exact amount, before anyone is allowed to pay or even place the order. Without it, your project start date drifts while procurement waits.
A proforma invoice fills that gap. It looks like your final invoice, but it is clearly labeled as a preliminary document, numbered separately, and not entered in your books as a sale.
TL;DR
The proforma invoice template mirrors a final invoice (your details, client entity, line items, expected tax at [TAX RATE]%, total) but is labeled PROFORMA, uses a separate number series such as PF-001, and includes a validity date and a note that the final invoice will follow. Send it when a client needs a document to raise a purchase order, approve budget or prepay. Never record a proforma as revenue.
What's inside
- PROFORMA label — in the title and repeated in the notes, so nobody files it as a tax invoice.
- Proforma number and validity — separate series and an expiry date for the prices.
- Header and bill-to — your full legal details and the client's entity, as procurement will copy them.
- Line items — the same descriptions, quantities and rates the final invoice will carry.
- Expected totals — subtotal, expected tax placeholder, total.
- Payment and PO instructions — what the client should do next.
- Final invoice note — how and when the real invoice will be issued.
When to use it
Send a proforma when a client needs a formal document before they can commit money: to raise a purchase order, to get budget approval from a finance committee, to prepay before you start, or to support an international bank transfer. Some clients also ask for one to compare suppliers on a like-for-like basis.
Do not use a proforma instead of a proposal. If the client has not agreed to the scope, send a freelance quote or proposal they can accept. And do not use it instead of a real invoice: once the PO is issued or work is delivered, send a proper invoice, such as a deposit invoice for the upfront payment or a freelance invoice for the balance.
Proforma versus quote versus invoice
| Document | Purpose | Binding? | Recorded as revenue? |
|---|---|---|---|
| Quote / proposal | Offer to do work at a price | Becomes binding when accepted | No |
| Proforma invoice | Preview of the final invoice for approval or prepayment | Not a demand for payment in the accounting sense | No |
| Invoice | Request for payment for work agreed or delivered | Yes | Yes |
The table is a general description. How each document is treated for tax can vary by country, so check with an accountant if you work across borders.
Getting the details procurement needs
Procurement teams copy proforma details straight into their systems, so typos become permanent. Double-check your legal business name, address and tax ID, and the client's exact registered entity name. Include bank details if the client will prepay. If the amount is in a currency other than the client's, say so clearly; the multi-currency invoice explains how to handle conversion wording.
Set a validity period, commonly 30 days, so a proforma raised in January does not lock your prices for a project that starts in July.
Customize it in your COLO workspace
In COLO a proposal can carry the same line items a proforma needs, with rate, hours, tax, discount and an expiry date, and you can download it as a PDF to send to procurement. When the client accepts the proposal in the client portal, you can convert it into an invoice so the numbers carry through without retyping. See Proposals and Invoicing and Payments.
Common mistakes
- Using your normal invoice numbers. It creates gaps or duplicates in your real invoice sequence.
- No PROFORMA label. The client's accounts team pays it and books it as an invoice.
- No validity date. Prices stay locked indefinitely.
- Recording it as a sale. Your revenue and tax figures will be wrong.
- Different details from the final invoice. The PO will not match and payment stalls.
FAQ
Q: What is a proforma invoice?
A proforma invoice is a preliminary bill sent before work is delivered. It shows what the final invoice will contain so the client can approve budget, raise a purchase order or pay in advance. It is not a request for payment in the accounting sense.
Q: Is a proforma invoice the same as a quote?
They are close. A quote or proposal is an offer the client can accept or decline. A proforma usually comes after agreement, formatted like an invoice, to support internal approval or prepayment.
Q: Does a proforma invoice get an invoice number?
Use a separate numbering series, such as PF-001, so it is never confused with your tax invoices. When the final invoice is issued it gets a normal invoice number and references the proforma.
Q: Should a proforma include tax?
Show the expected tax so the client can budget the full amount, but label the document clearly as proforma. Tax is normally accounted for on the final invoice, though rules vary by jurisdiction.
Q: When do freelancers need a proforma?
Most often when a corporate client needs a document to raise a PO, when a client must prepay before you start, or when an overseas client needs a document for a bank transfer or approval process.