A proforma invoice is a crucial document in international trade that serves as a preliminary bill of sale. It outlines the estimated costs and terms of a transaction between a buyer and a seller. By providing detailed information about the goods or services being offered, a proforma invoice allows both parties to understand the scope of the transaction and make informed decisions. In this article, we will explore the basics of a proforma invoice, its role in international trade, the differences between proforma and commercial invoices, as well as the process of creating a proforma invoice. Additionally, we will discuss the impact of proforma invoices on business operations, particularly in terms of cash flow management and building strong business relationships.