Pro forma statements are used by businesses to make decisions on planning and control, as well as for external reporting to owners, investors, and creditors. For example, giving financial estimates for a given period in a standardized manner is known as “presenting pro forma,” a Latin phrase that means “as a matter of form.”
Pro forma statements can be helpful tools for business owners, investors, creditors, or decision-makers to analyze various scenarios of future events based on certain financial assumptions. It might aid in making predictions performance of the company.
A pro forma income statement displays a firm’s anticipated sales and revenue. It also highlights anticipated fixed or variable operational expenses and, in the end, displays the potential profits and retained earnings for a future financial quarter. There are various types of pro-forma statements and methods to develop them.
The responsibilities/competencies of the Financial Controller position (FC) has changed in recent years. However, the creation of pro forma financial statements is still a core part of their responsibility.
Learning Objectives
- Explore and evaluate pro forma financial forecasting.
- Explore and examine the types of pro forma statements.
- Identify steps to create a pro forma statement.
- Recognize the example - pro forma sales forecast.
Included In Certifications
This course is included in the following Certification Programs:
19 CoursesThe Controllership Series Certification
- The Controllership Series: The Controller Function - Elevating the Role
- The Controllership Series: The Controller Function - Strategic and Annual Planning
- The Controllership Series: The Controllers Role in Financial Forecasting
- The Treasury Function Part 1: Cash, Liquidity and Investments
- The Controllership Series: The Controller Function - Cash and Investments
- ASC 842 Accounting for Leases - Deep Dive
- Revenue Recognition (ASC Topic 606) Standard Overview
- The Controllership Series: The Controller Function - Inventory Part 1
- The Controllership Series: The Controller Function - Inventory Part 2 - Inventory Valuation, Physical Inventory Methods and Inventory fraud
- The Controllership Series: Overhead, Direct and Indirect Costs and Allocation Methods
- The Controllership Series: Financial Statement Preparation and Presentation
- The Controllership Series: The Controllers Role in the Procurement Function
- The Controllership Series: The Role of The Controller in ESG
- The Controllership Series: The Controllers Role in Pro Forma Financials
- The Controllership Series: The Controllers Role in Data Analytics and Big Data
- The Controllership Series: The Financial Close Process
- The Controllership Series: Managerial Accounting Basics and Cost Principles
- The Controllership Series: Sales, Collections and Customer Credit
- Tools for The Controllership Series Certificate
Prerequisites
No advanced preparation or prerequisites are required for this course.
Education Provider Information
