Proforma invoices: essential for your business

Proforma are a key tool in the sales process for any business. Below we'll explain what they are and how to use them to boost all your sales.

Creating proformas can be a headache if you don't know where to start. Don't worry if you're not a master of accounting! In this article, we explain it in an easy way so you understand the importance of incorporating these invoices into the activities of self-employed individuals or small businesses. And through this, you can apply it to your own business!

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What is a proforma invoice?

A proforma invoice is a document that includes all the conditions of the sale of a particular product or service so that the customer can approve or evaluate their final purchase. What sets it apart from a regular invoice is that the proforma does not have tax or accounting validity.

But be careful! It's important to note that the details included in proformas are the same as in regular invoices. Therefore, it will be essential to add the corresponding taxes here.

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What are the benefits of using it?

When you send a proforma, for example, before confirming that a specific service will be carried out, the customer can better understand how that activity will be executed and what your rates are. By being transparent, you will gain credibility in the process and avoid misunderstandings due to potential non-payments.

The proforma will also be useful for determining if a project is profitable, as you will know its cost in advance even if it's not yet underway.

Another advantage of using it is that you can request grants or loans with it.

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As we have seen so far, the proforma is ideal for fostering customer loyalty. In addition, despite not recording it in your accounts, it helps you organize and plan your prices/services. With the proforma, you have the opportunity to understand why your customers choose you over the competition.

Here's an example of a proforma you can create through taclia. But first, remember:

1. To be considered a proforma invoice, remember to add "proforma" in the document.
2. It's not mandatory to number a proforma. However, for your actual invoices, it is.
3. Always include your and your client's information. Even though it's a proforma, it still requires this information.
4. Also, include the date the proforma is issued and its expiration date.

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In conclusion, proforma invoices:

• Are effective in conveying commercial offers.
• You can use them as a record of activity when the client has not yet paid.
• Provide greater security in the buying and selling processes.
• If the customer accepts your proforma, you can then issue the final invoice for payment. This process will be quicker as you already have the proforma as a reference!
• With taclia, you can create your proformas in seconds. And send them directly from the platform to the client!

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‍We are a business management software that aims to make your daily tasks easier. We'll show you how to create a proforma invoice with us here.

Try taclia for free.