Pro Forma Financial Statements Template

Pro Forma Financial Statements Template. Pro forma income statements provide an important benchmark or budget for operating a business throughout the year. Pro forma financial statements refer to the reporting of the companies current or projected financial statements based certain assumptions and hypothetical events that may have occurred or is likely to happen in the future.

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Essentially, pro forma financial statements are financial reports based on hypothetical scenarios that utilize assumptions or financial projections. Companies generally issue this statement along with Generally Accepted Accounting Principles to provide investors a better understanding of a company's state. Pro forma income statements provide an important benchmark or budget for operating a business throughout the year.

Definition of Pro Forma Financial Statement A pro forma financial statement is one based on certain assumptions and projections (as opposed to the typical financial statement based on actual past transactions).

Taking the time to model assumptions and examine trends can greatly improve the accuracy of projections.

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Financial Forecasting (Pro Forma Financial Statements). So, what is a pro forma statement? Pro forma statements look like regular statements, except they're based on what ifs, not real financial results.