Pro forma income statement template microsoft.
Pro forma income statement template. Pro forma income statement is the statement prepared by the business entity to prepare the projections of income and expenses which they expect to have in the future by following certain assumptions such as competition level in the market size of the market growth rate etc. This should ideally be done before year s end. So when you create next year s budget you can include that extra 7 000 maybe spending 4 000 over the course of the year to pay down the principal on a loan while adding 3 000 to savings.
Companies often use pro forma income statements to forecast what may happen in anticipation of an event. This pro forma excel template gives you various useful guidelines on the use of microsoft excel and microsoft office for the creation of spreadsheets and the use of its multiple functions. Sit down with an income statement from the current year.
A pro forma income statement is based on projections or possibilities. The income statement is generally a record of income received and expenses incurred over that period. Pro forma income statement template excel.
It can be tempting to do so because both concepts revolve around how your business is going to spend its money in the future. Pro forma financial statements vs. Don t trick yourself into thinking that a pro forma statement is equal to an actual budget.
Pro forma income statement. In fact the budget you have now can easily play a role in a pro forma statement. The second worksheet shown on the right is a multi step income statement that calculates gross profit and operating income.
We put together a rundown on how your income statement should be constructed. To create a pro forma income statement work from your current income statement and try to predict the future changes. For example if the company is considering a merger a pro forma income statement may be prepared to determine the profitability of the merger.
According to your pro forma annual income statement it will be 44 000 next year. When they re done well these statements can be used to make predictions about how a company will perform in the future. Pro forma income statement excel templates can be used to portray a business s finances accurately and succinctly.
This income statement template was designed for the small business owner and contains two example income statements each on a separate worksheet tab see the screenshots the first is a simple single step income statement with all revenues and expenses lumped together. Consider how each item on that statement can or will be changed during the coming year.