Business Pro Forma Template for Excel

pro forma template for excel

Pro Forma is a common word in the business world. Usually, business people use the term pro forma to share information about a company’s potential performance. Pro forma income statement presents the possible future income of a business. Pro Forma Cash Flow Statement presents future cash flows; the pro forma balance sheet presents the future financial conditions of the company. You can find pro forma templates in Excel on this page to use for your business budgeting.

Advantages of a pro forma pro forma model

There are several benefits of using a pro forma Excel template to prepare a pro forma income statement, cash flow statement, and balance sheet. But before we get into that first, we need to understand what is a pro forma?

What is a pro forma?

Pro Forma refers to the term “futuristic” or “projection”. So, when you talk about pro forma financial statements, you are referring to a projection of a company’s financial condition. Please take a look at the following pro forma templates in Excel to get a good idea of what is a pro forma statement and how useful it is.

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You can prepare three types of pro forma statements – pro forma income statement, pro forma cash flow statement and pro forma balance sheet. Among these statements, the pro forma income statement and the pro forma cash flow statement are the most useful. There are excel files provided as sample proforma statement, take a look at proforma excel template to get a good idea.

Which pro forma financial statement template includes?

In an Excel Pro Forma template, you will find a pro forma income statement, balance sheet, and cash flow statement. You will find a set of assumptions used to make the Business Pro Forma model. Assumptions are the key to projection; This is where you need to put your efforts to turn the Pro Forma Excel model into the perfect forecast for your project.

Pro forma income statement

A pro forma income statement projects the probable future operational output of a company, a specific project or a start-up company. Ideally, the pro forma income statement is prepared based on information from historical income statements. Using historical data, you need to adjust the probable market trend, the impact of macroeconomic variables and institutional frameworks and other relevant information.

To forecast sales revenue, you need to find a realistic growth rate. You can find a realistic growth rate by analyzing the industry trend, tax regulations, GDP growth, inflation rate, price elasticity of demand, and consumer income growth.

Download the following pro forma profit sample to prepare your first planned profit and loss account

Download the Excel template! Learn even more ⟶ Annual income statement

Pro forma balance sheet

The pro forma balance sheet projects probable business assets and liability terms. Like the pro forma income statement, the balance sheet uses past accounting information. In preparing the pro forma balance sheet, you make a set of assumptions that explain an ideal condition of business needs for working capital, inventory, fixed assets, and liquidity. Additionally, the assumptions should consider the required capital expenditure, funding for capital expenditure, business strategy on capital mix, dividend policy, and management of short-term liabilities.

Download the following pro forma budget template, practice and understand the pro forma income statement, balance sheet and pro forma cash flow statement.

Download the Excel template! Learn even more ⟶ An Excel Balanced Scorecard

Pro Forma Cash Flow Statement

The Pro Forma Cash Flow Statement projects the cash and cash flowing out of the business. Unlike other statements, the pro forma cash flow model will require a set of assumptions for the projection. We generally prepare the pro forma cash flow statement based on the expected period. In other words, the assumptions depend on the time scale of the projection.

Download the Excel template! Learn even more ⟶ Cash Flow Dashboard

What are the benefits of using Excel Pro Forma templates?

Using Financial Pro Forma templates has several advantages. The following list would provide a good idea of the likely benefits you could get from using a Pro Forma Excel spreadsheet.

1. Accessible to forecasting business income, cash flow and balance sheet
2. No need to do complex calculations over and over again
3. Can update the script whenever needed
4. Can adjust assumptions as needed
5. Not necessary much technical knowledge in Excel

Download an Excel Pro Forma template today and start planning your business operations.

Download the Excel template! Learn even more ⟶ Monthly financial statements

How to make Pro Forma Excel template?

To create an Excel pro forma template, you will need to start thinking about how your business will operate in the years to come. Additionally, the use of the tools available to create your planned pro forma statement template determines the effectiveness of the outputs. To prepare a realistic pro forma statement, you should focus on the following:

• Accuracy of historical information: the data you intend to use to project the operational plan must be free of error
• A good understanding of the market trend is another essential factor to prepare an excellent pro forma budget template
• Updated information on macroeconomic variables will play a crucial role in substantiating your forecasted financial data
• A comprehensive database of different time value factors i.e. interest rates, dividend yield in industry, cost of capital, inflation rate, GDP growth.
• A realistic set of assumptions to use in pro forma statements – this is where you put most of the time to get the perfect output ( Learn how to prepare a set of assumptions to develop a pro forma statement template )

In general, any projection for a short time is the most accurate. As the time horizon increases, the degree of forecast accuracy decreases. Therefore, it is good to prepare the financial models for three to 5 years.

Who can use the Pro Forma Excel template?

Generally speaking, anyone running a business or managing a business can use an Excel Pro Forma model to forecast business performance. If you are running a start-up business, you can use the pro forma template for start-up. Those who are planning a project or writing a business plan can also use a pro forma pro forma template as it will help them convince potential investors.

Special pro forma financial statement templates for your business

Every business has its strategies and operating plan. Therefore, you cannot simply use a Business Pro Forma template. You will need to customize the Budget Excel template to suit your business needs. For example, if your business is in the service industry, you will need a pro forma financial statement template. Because an Excel Pro Forma template created for a production-based business will not work well for a service-based business. Likewise, industry, geographic location, business attributes play a vital role in creating sample pro forma earnings and other financial statements.

How to use PRO FORMA EXCEL template?

It is quite easy to use an Excel pro forma template for forecasting and operations planning. There are particular cells in the Excel Pro Forma template that you will need to fill in depending on the state of your business. These empty cells had to be filled in according to the assumptions made. For example, you will be asked to guess a growth rate of your income, also the cost will increase next year, the growth of administrative expenses, the growth of selling expenses and the likely changes in tax rates, and more Again. Once you have provided inputs in all required fields, the forecast will be performed automatically. More information regarding the use of the PRO Forma Excel template is written in the template.

Therefore, if you are running a business on your own, get your copy of the PRO FORMA EXCEL template and start planning for the future of your business.