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Pre-invoicing: the Entrepreneur’s Guide

Pre-invoicing: the Entrepreneur’s Guide

Every entrepreneur understands the importance of proper invoicing. In the business world, invoices become the basis for any financial transaction. But what do you do when you need to invoice in advance? How to do it correctly and avoid mistakes? In this article we will try to answer these questions. Join us and find out everything you need to know about pre-invoicing!

What is a pre-invoice?

A pre-invoice is a document that is issued before the goods or services are received. It is most often used when a customer wants to secure a reservation for a good or service but payment has not yet been made. It also allows the supplier to define the terms under which the goods or services will be provided and to detail the specific payments to be made. The pre-invoice can be used as a communication tool between the trader and the customer, ensuring that both parties understand and accept the terms of the transaction.

Why do I need to be invoiced in advance?

This type of invoice gives the business a guarantee that the customer is committed to making a payment. It also helps to control the company’s cash flow and to plan for future income. In addition to the guarantee of future income, the invoice in advance also acts as a documentary proof of the details of the business transaction, reducing the possibility of uncertainties or misunderstandings between parties. In addition, by using a forward invoice, businesses can better predict their financial position and ensure that they will be properly compensated for their goods or services.

Advance invoice template: what is important?

It is recommended to use a template to issue a forward invoice. The invoice template will help you to make sure that all important details are included. It also makes the document easier to understand for both you and your customer. The template saves you time as you don’t have to create the whole document from scratch every time you need to invoice. Using a template can reduce the likelihood of errors and ensure that the invoice complies with all legal requirements.

Advance VAT invoicing: what is the difference?

An advance VAT invoice differs from a simple advance invoice in that it includes the amount of VAT. This document is necessary if your company is a VAT payer. The Advance VAT Invoice template will help you quickly and easily prepare this important document. In addition to specifying the VAT amount, such a document may also contain other specific details that are required by the VAT regulations in Lithuania. It is therefore very important to ensure that the document is drafted properly and in compliance with all the necessary provisions.

How to store advance invoices?

All invoices, including advance invoices, must be kept for at least 5 years from the date of issue. It is recommended to keep them both in paper form and electronically. The Advance Invoice Template can help you organise and archive these documents. In addition, storing invoices electronically makes it easy to retrieve them in case you lose the paper version, which is important for audits or any other legal purposes. By ensuring that documents are properly stored, you can minimise any potential risks associated with their loss or damage.


The invoice in advance is an essential tool for every business, as it not only helps to ensure a smooth procedure for the purchase of goods or services, but also provides a legal basis for the financial obligations of both parties. The document also helps the business to forecast revenue, plan budgets and control cash flow. In addition, the use of this account can reduce disagreements and misunderstandings with customers over payment terms or deadlines. Thus, in addition to being a practical document, the invoice in advance is an important element of business strategy. I hope that this guide has helped you to better understand how to issue an invoice in advance and its importance in the business process.