Pro Forma Income Statement For New Business

Enter business plan assumptions in a step by step format recurring and one time.

Pro forma income statement for new business. Pro forma income statements also called pro forma profit and loss pro forma p l are projections based on your past income statements. Regular income statements sometimes called statement of financial performance are exacting in that they reflect the exact income figures your company had in past years. Your pro forma statements will be much more accurate if your bookkeeping is up to date. Our comprehensive pro forma excel model has helped thousands of entrepreneurs build detailed financial models get funded and get launched.

A pro forma financial statement can be a key tool to include in your arsenal to lower your risks plan for the future and help secure funding. 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. For my purposes here a pro forma income statement is similar to a historical income statement except it projects the future rather than tracks the past. That way when you project the future you re basing it off the reality of your business today.

If the projections predict a downturn in profitability then you can make operational changes such as increasing prices or decreasing costs before these projections become reality. Prepare your pro forma income statement using data you ve compiled in the prior four steps. To demonstrate the steps of building a pro forma cash flow let s use a hypothetical company west coast shoe wholesalers inc. To create a pro forma cash flow you need to know your current cash position.

Pro forma income statement 2013 2014 2015 sales 172 800 228 122 262 340 direct cost of goods 0 0 0 other 0 0 0 total cost of sales 35 304 32 400 27 600 gross margin 172 800. Business startup budget a startup budget is like a projected cash flow statement but with a little more guesswork. Financial statements needed for a successful business plan including balance sheet income statement and sources and uses of funds.