How do you get PAID IN ADVANCE? Pro Forma Invoices Explained!

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  • Опубликовано: 1 фев 2025

Комментарии • 28

  • @laurainghammusic
    @laurainghammusic 5 лет назад +4

    Thank you so much for making this video! Super helpful!

  • @summerbreeze1955
    @summerbreeze1955 4 года назад

    Brilliant well articulated advice thank you again, defo will use a pro forma and will be hypervigilant for scammers x

  • @kennedycornermuse3283
    @kennedycornermuse3283 Год назад

    This great work. Thanks for your time

  • @emilykouri3653
    @emilykouri3653 3 года назад +1

    Thanks so much for sharing!

  • @nadiapolicarpova7962
    @nadiapolicarpova7962 4 года назад

    Hello! Thank you for such a detailed explanation!
    I was wondering if you can point out how and why a freelance artist is supposed to generate a proforma for shipping art pieces to an exhibition? Thank you!

    • @improsolutionsbangladesh
      @improsolutionsbangladesh Год назад

      Your question is not clear. Proforma is issued from a supplier when you are ready to buy anything from him. If you need free advice, please contact me. Check my About for contact details.

  • @richardwilliamson3624
    @richardwilliamson3624 5 лет назад

    Great info and content. Thank you.

  • @marvinzegarra
    @marvinzegarra 4 года назад

    Usefull info. I have a question. I've been asked for a pro forma in order to receive a 50% advance on a gig. I What I dont know is iof I'm supposd to write the pro forma for only thew advance paypent or for the entire amount and specify this incluides an advanced payment.

    • @SmallBusinessToolbox
      @SmallBusinessToolbox  4 года назад +2

      It's up to you really (or the customer) - whatever you need to do to get your upfront payment. If it was me I'd issue a pro forma saying something along the lines of "£x advance payment for . Balanced of £x due on completion under usual invoice terms". I would then issue a final invoice on completion showing the full amount minus the initial payment - make it clear on that invoice when the initial 50% was paid. So my final invoice would show something along the lines of:
      Gig on 2/3/20: £5,000
      50% Advance payment received on 20/2/20: -£2,500
      Total due: £2,500
      Not saying that's correct, but that's what I'd do. 😀👍

    • @marvinzegarra
      @marvinzegarra 4 года назад

      @@SmallBusinessToolbox tHANKS

  • @folahanagboola8641
    @folahanagboola8641 Год назад

    God bless you for this. From 2023

  • @richardwilliamson3624
    @richardwilliamson3624 5 лет назад

    I was always told you can’t charge vat as no service/goods had been supplied. So you issue a pro for a exclusive of vat

    • @SmallBusinessToolbox
      @SmallBusinessToolbox  5 лет назад +1

      No, you should charge the VAT as normal but the customer can't reclaim it until you've issued a VAT invoice. 👍

  • @summerbreeze1955
    @summerbreeze1955 4 года назад

    Hi again, please can you tell me, if I use the purchase order no when I send a pro forma to a customer, or do I make up a separate no for the pro forma? And when I issue a final Invoice for goods paid do I use the same pro forma invoice No? I'm a bit uncertain about this. Many thanks

    • @improsolutionsbangladesh
      @improsolutionsbangladesh Год назад

      Excellent question. A) Purchase Order has its own number. B) You must mention PO number on your Proforma Invoice number. C) Invoice : You must mention Proforma Invoice number on Invoice and Invoice has its own separate number. If you need free advice, please contact me. Check my About for contact details.

  • @simonjohn2511
    @simonjohn2511 5 лет назад

    Hi Andy, I used to be self employed and after a couple of years employed I’m about to go back to it but I’d like to take deposits this time around to cover materials etc (I think like how you run your joinery business) would you recommend pro forma invoices for this and do you just invoice for the rest at the end like usual?
    Thanks in advance.

    • @SmallBusinessToolbox
      @SmallBusinessToolbox  5 лет назад

      Personally speaking I would only issue a Pro Forma if I'm specifically asked for one - normally when dealing B2B as sometimes the company won't pay you without one. For B2C I would just issue a normal invoice for the deposit and a final invoice for the balance. 👍

    • @simonjohn2511
      @simonjohn2511 5 лет назад

      Small Business Toolbox
      Thanks for the reply 👍🏻

  • @thisis_jay.
    @thisis_jay. 5 лет назад

    What is issued first. Purchase order or pro forma invoice ?

    • @SmallBusinessToolbox
      @SmallBusinessToolbox  5 лет назад +1

      Normally purchase order first, since you normally need to quote the PO number on invoices. 👍

    • @thisis_jay.
      @thisis_jay. 5 лет назад

      @@SmallBusinessToolbox you mean to say that along with invoice no. In invoice, I also need to write purchase order number in both pro forma invoice and commercial invoice.

    • @SmallBusinessToolbox
      @SmallBusinessToolbox  5 лет назад +1

      Potentially yes - depends on your customer. Basically if they give you a PO number quote it and you're more likely to get paid quicker.

    • @thisis_jay.
      @thisis_jay. 5 лет назад

      @@SmallBusinessToolbox thanks mate. It was really helpful.🙂

  • @sikanderhayat448
    @sikanderhayat448 4 года назад +1

    Great

  • @katumbabadru1441
    @katumbabadru1441 5 лет назад

    Thank you