Difference Between Pro Forma invoices and Tax invoices?

If you own a business, then proper knowledge about invoices becomes essential. An invoice is a document that can be used to package up the services or products that your business provides. It can also serve as a record of the transaction for both you and your customer.

What is a Pro Forma Invoice?

A Pro Forma Invoice is an initial invoice generated using free invoice software by the seller to give the buyer necessary information about the goods. It contains a summary of an agreement between two parties and the terms of the same, and can be used as an estimate for future sales.

Purpose of a Pro Forma Invoice

The purpose of a Pro Forma Invoice is to provide an estimated cost of the goods to the buyer. It also makes the buyer understand the content of the goods before making a purchase. 

When is a Pro Forma Invoice Generated?

A Pro Forma Invoice is often considered as a business proposal

What is a Tax Invoice?

A Tax Invoice is generated by the seller when a purchase is made. It includes the description of the goods/services purchased by the buyer. A Tax Invoice indicates the confirmation of the sale and is non-negotiable. It requests the buyer to make the payment for the goods purchased and includes details of the goods/services

What is a tax invoice?

A tax invoice is a document that contains information about the amount of money or goods owed. It can also be used as evidence in any trades between two parties. 

When is it generated?

When a customer makes a purchase, the seller can generate a gst invoice bill with the details of the goods provided by the seller
Thank you for reading this blog post on invoices. We hope that you now understand the importance of invoices and what they are, and how they can help you run your business smoothly and efficiently. They also help you track your profits and create better strategies for higher revenue.