![]() ![]() Pro Forma Cash Flow StatementĪ pro forma cash flow statement is an estimate of how your company’s cash flows over a period of time. It shows your assets, liabilities, and equity, and can be used to assess your company’s financial health. Pro Forma Balance SheetĪ pro forma balance sheet is an estimate of your company’s financial position at a specific point in time. It shows your expected revenue and expenses and can be used to assess the viability of your business. Pro Forma Income StatementĪ pro forma income statement is an estimate of your company’s financial performance over a period of time. There are several types of pro forma statements, including the income statement, balance sheet, and cash flow statement. Types of Pro Forma Statements in Business Plans If you’d like to quickly and easily complete your business plan, download Growthink’s Ultimate Business Plan Template and complete your plan and financial model in hours. It shows a company’s expected revenue and expenses over a period of time and can help you to identify potential problems early on. The pro forma income statement is a crucial financial tool that can be used to assess the viability of your business. Importance of a Pro Forma Income Statement in Business Plans ![]() You should also include a pro forma income statement, balance sheet, and cash flow statement. When writing a pro forma business plan, you will need to include information such as your company’s sales forecasts, expenses, capital expenditure plans, and funding requirements. Your pro forma financial statements also help you to identify and track key financial indicators and metrics over time. Among other things, they consider the likelihood your company will achieve the financial results you forecast, and their expected return on investment (ROI). They use your pro forma statements in determining whether to invest in your company or not. Why include a Pro Forma Statement in your Business PlanĪ pro forma statement is important for your business plan because it gives investors and lenders an idea of your company’s potential financial health. They are often used by businesses to plan for upcoming periods or quarters, assess new opportunities, or track progress against goals. Cash flow differs from NI because, under accrual accounting, certain revenues and expenses are recognized prior to or after cash changes hands.Pro forma financial statements are a type of statement that provides estimates or financial projections for a company. This part of the pro forma statement will identify the net effect on cash if the proposed business change is implemented.
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