How to Use Proforma Invoices Like a Pro: Tips for Creatives

As a creative, managing client expectations and setting project budgets is a top priority of mine. I value building long-term partnerships with brands and agencies that are doing great things, and for that, I need professional tools. One of the ones I use is called a proforma invoice. It’s a document you send to your clients or leads when you need to outline services and costs before a project starts. 

If you’re a freelancer or running a small agency, using proforma invoices can give your project proposal process more structure and protect your bottom line.

In this guide, I’ll walk you through what a proforma invoice is, what it includes and looks like, and some must-have tips when making your own. 

Key Takeaways

• A proforma invoice is a preliminary estimate, not a demand for payment.
• It outlines project details, costs, and terms to help set expectations.
• Using proforma invoices builds client trust, prevents scope creep, and supports better budgeting.
• Paired with budget planner apps, proforma invoices help ensure your pricing is sustainable

What are proforma invoices?

A proforma invoice is a preliminary document you send to a client before delivering services or products. It includes estimated costs, a breakdown of deliverables, and payment terms.

Think of it as a contract proposal. It previews the final bill but doesn’t request payment. Agencies often use proforma invoices to give clients a clear estimate of the software development cost upfront.

I use it to outline expected deposits or payment milestones for potential projects. Once the client approves, I follow up with a formal invoice.

➜ Always clarify the purpose to your client. Let them know it’s for approval and planning, not an invoice that requires payment right away. And that you’ll be sending a final sales invoice later. (I’ll share more on what to say to clients in a bit.)

Benefits of using proforma invoices

Proforma invoices are especially useful for creatives and freelancers.

They can help you:

• Set project boundaries: Define the scope of work, sales agreement, and deliverables upfront.
• Prevent misunderstandings: Clearly outline costs and terms to avoid confusion.
• Secure payment commitment: Get budget approval and consistent payments.
• Build trust: Show professionalism and transparency with a well-drafted estimate.
• Control scope: Lock in the project scope early to avoid unpaid extra work.
• Streamline billing: Final invoicing becomes easier when expectations are set from the start.

Proforma invoices also support long-term financial stability. When used with a personal budget planner app, they help you price your work appropriately, cover your costs, and consistently set aside money for taxes and business growth.

They make it so much easier for me to forecast income, plan cash flow, and allocate my time and resources wisely across multiple projects.

Example of a proforma invoice

A standard proforma invoice should include:

• Client info: Name, company, address, and contact details like your virtual phone number, email, etc.
• Invoice date: When the estimate was issued.
• Invoice number: A number assigned to the invoice for tracking
• Purchase order description: Itemized list of services or goods.
• Cost breakdown: Prices for each item or service and shipping charges if applicable.
• Terms and conditions: Payment terms, policies, and/or deadlines.
• Delivery timeline: Estimated project completion or delivery date. (And shipping dates if needed.) (optional)
• Tax info: Sales tax, VAT, or other applicable charges.
• Price notice: A note that the final price is subject to change depending on project scope.

Here’s an example of a basic proforma invoice:

Just add your logo if you have one, and any final details (like payment methods), and hit send.

6 proforma invoice billing tips for creatives

Use these tips to create clearer proforma invoice estimates, set expectations, and avoid billing issues.

1. Break down your scope clearly

Spell out exactly what you’re delivering. Itemize each service, product, or milestone with its individual price. 

If I’m invoicing for a multi-channel marketing plan, I’ll list marketing research, campaign planning, and editing as three separate line items. This helps clients understand the value behind each phase and gives me leverage if they request extra rounds of edits or more deliverables.

2. Make it client-friendly

Structure your invoice with clean formatting, logical sections, and easy-to-read language.

Use Paymo to create a custom proforma invoice if you need help with this.

Add your logo or branding to give it a polished, professional look. Remember, your client may need to send this to their internal team or stakeholders for approval.

Make it easy for them to say yes.

3. Define your deposit terms and payment process

While a proforma invoice isn’t a formal payment request, you can use it to clarify your payment expectations. Clearly state the percentage due upfront (if a deposit is required) and the expected payment date for the full balance.

For example: “50% deposit required before project start. Balance due within 14 days of project completion.”

4. Send it before starting major work

Share the proforma invoice before any significant work begins.

This gives your client a chance to review it and ask you questions. (I like to send it around 30 days in advance for B2B clients since they have slower internal signoff processes. And 14 days in advance for B2C clients.)

If the scope shifts, update the document and reconfirm approval before starting work. 

5. Update when scope changes

If the client requests additional project tasks or changes direction, pause and revise the proforma invoice. Send a revised version that reflects the added time, cost, or complexity.

Never assume verbal agreements are enough. Having project changes in writing helps avoid disputes and makes your final invoice easier (and hopefully faster) to process.

6. Educate your clients

Don’t assume your client is familiar with the term “proforma invoice.” Many clients — especially first-time buyers or those outside of procurement roles — may confuse it with a standard invoice.

Take a moment to explain that it’s a non-binding estimate meant to outline expectations before work begins. Emphasize that it’s for review and internal approval, not for immediate payment.

This is also a great opportunity to establish a collaborative and partnership-oriented tone. 

Let them know that if the scope changes, timelines shift, or additional services are needed, you’ll promptly issue a revised version to reflect the new terms. This transparency helps you both avoid awkward money conversations later. It also builds trust early and gives clients confidence in your process.

Wrap up

Proforma invoices help you lead your business with intention. They allow you to set boundaries, communicate value, and start each client relationship with clarity.

If you’re freelancing or running a small studio, this small step can help you grow sustainably.

Want to simplify your billing process and spend less time chasing approvals? Try Paymo to create and manage professional-looking proforma invoices that stand out, feel polished, and look professional.

FAQs about proforma invoices

What is a proforma invoice?

A proforma invoice is a preliminary document that outlines expected project costs, deliverables, and payment terms. It’s used before any work begins and is not a request for payment — just a way to review and approve project details and items quoted in advance.

How is a proforma invoice different from a regular invoice?

A regular (or commercial) invoice is an official request for payment. A proforma invoice is sent beforehand to outline the project scope and get client signoff. It shows prices of items, sales tax or VAT (value-added tax, and product description details.

It also includes the buyer’s name and address and the seller’s name and address.

Can I ask for a deposit using a proforma invoice?

Yes, just make sure it’s clearly labeled as part of your estimate. You can note your deposit terms (e.g., “50% deposit due before kickoff”) without making it a formal bill.

Is a proforma invoice legally binding?

No, it’s not legally binding like a contract or formal invoice. But it does serve as a mutual reference point, which is especially helpful if the project scope evolves.

When should I use a proforma invoice?

Use a proforma invoice when:

• You’re working with new clients who need internal signoff
• The scope or project budget is still being finalized
• You’re submitting a proposal for approval
• A project requires milestone payments

It’s especially useful for longer or multi-phase projects where clarity upfront prevents issues later.

Can I revise a proforma invoice mid-project?

Absolutely. You can revise a proforma invoice mid-project if the client adds deliverables, changes timelines, or shifts priorities. Send a new proforma invoice reflecting the updated scope and cost. Always confirm changes in writing.

Should I still use a contract if I send a proforma invoice?

Yes. A proforma invoice is not a substitute for a contract. Use both: The proforma invoice sets expectations around costs, while the contract defines rights, responsibilities, timelines, and legal protections.

How do I make a proforma invoice look professional?

Use clean formatting, your logo, and clear language. List out each service with its cost, and include payment terms. Tools like Paymo make it easy to generate professional-looking proforma invoices in minutes.

Can I use a proforma invoice for recurring projects or retainers?

Yes, proforma invoices work well for retainer agreements or recurring creative work, as long as you outline the deliverables and timeframes clearly.

Include the scope of ongoing services (like “monthly content strategy” or “weekly design updates”), along with payment terms for each billing period.

You can also add a note like:

“This estimate reflects recurring monthly services. Any additional work outside of this scope will require a revised proforma invoice.”

This keeps both parties aligned on a month-to-month basis and helps avoid surprises related to billing or scope creep.