12 Business Pro Forma Example

12 Business Pro Forma Example. Pro forma, latin for as a matter of form or for the sake of form, is a method of calculating financial results using certain projections or presumptions. Pro forma income statements provide an important benchmark or budget for operating a business throughout the year.

Pro forma statements look like regular statements, except they're based on what ifs, not real financial results. What are pro forma financial statements? Business planning a company uses pro forma statements in the process of business planning and control.

A pro forma financial statement is a report prepared base on estimates, assumptions, or projections.

Here are several examples of pro forma financial statements investment pro forma projection. While a small business with a track record may create such a statement based on their company's prior financial info, a startup or entrepreneur in the initial stages of forming a company may find it challenging. To start creating a pro forma statement, begin with an income statement from the current year. Your income this year is $37,000.