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Hiya folks welcome back to the small business toolbox where we talk about the nuts and bolts of self-employment in the UK I'm Andy mark and I've been self-employed for a long time, and I'm just hoping that some of the things that I've learned over the years can benefit you in some way last time we had a little chat about invoicing and actually getting paid by your customers today we're going to chat about a different type of invoice and that's called a proforma invoice a regular invoice is generally used to get paid for work that you've already done but what if you want to get paid in advance for some work well that's where the pro forma invoice comes into play as were briefly touched on last time a regular invoice fulfills two different roles it's a tax document, and it's a legal document a pro forma doesn't work like that it's not a tax document it's of no use whatsoever for your accounts or the accounts of the person that you'd give it to, and it's also only loosely a legal document it kind of depends on terms and conditions that you might earn for something a pro forma but generally speaking your pro format not going to carry the same weight as an actual invoice in many ways a pro forma invoice is actually closer to a quote than an invoice so as per usual you can download a template pro forma invoice off my Patreon there's a link in the description below, or you can generate your own they're relatively easy to make let me talk you through one and explain the sort of information that you might want to include in a pro forma invoice one of the key things to remember with a pro forma is that there's really no right and wrong there's no official guide or official way that a pro forma invoice should look this is just what I've seen over the years and based on what companies have given to me for invoices and to my companies for invoices everyone does it slightly differently and really all I would say is this is a starting point for your business and I would say check with your accountant maybe check with your solicitor if you've got one and check that there happy with the way that you're doing things it's really up to you to do your own homework that this is going to be suitable for your business but as I say if you want to download this particular excels template for a pro forma it's on my Patreon, and you can get access to it from there, and it just gives you a starting point over the years I've seen some companies that literally generate a quote and then all they do is they change the wording at the top instead of saying quote they change it to pro forma I've seen some companies that generate an invoice and just change it from invoice to pro forma at the top, and I've seen some that do it in more of a kind of halfway house between a quote and an invoice which is more what this is if you disagree with anything I'm saying in this police pops down in the comments below because as I say there's a number of schools of thought on how this should be...
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