How To Prepare A Pro Forma Balance Sheet. Unless you have a very small business, it can be extremely difficult to prepare a balance sheet manually. Pro forma statements look like regular statements, except they're based on what ifs, not real financial results.
Pro forma balance sheets indicate how the business will utilize its assets in the future. There are a number of steps to follow to prepare a balance sheet. They also create and use them to plan for future business decisions.
How to create pro forma statements.
Nobody expects a pro forma to be completely accurate, but it should be based on real information and written to reflect your good faith expectations.
Have you found yourself in the position of needing to prepare a balance sheet? Prepare pro forma balance sheets when the situation requires. A pro forma balance sheet is similar to a historical balance sheet, but it represents a future projection.
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