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.
Last updated/reviewed: March 23, 2024

Included In Certifications

This course is included in the following Certification Programs:

22 CoursesThe Controllership Series Certification

  1. The Controllership Series: The Controller Function - Elevating the Role
  2. The Controllership Series: The Controller Function - Strategic and Annual Planning
  3. The Controllership Series: The Controllers Role in Financial Forecasting
  4. The Controllership Series: Future Role of the Controller – Part 1
  5. The Controllership Series: Future Role of the Controller – Part 2
  6. The Controllership Series: The Controller Function - Cash and Investments
  7. ASC 842 Accounting for Leases - Deep Dive
  8. The Controllership Series: The Controller Function - Inventory Part 1
  9. The Controllership Series: The Controller Function - Inventory Part 2 - Inventory Valuation, Physical Inventory Methods and Inventory fraud
  10. The Controllership Series: Overhead, Direct and Indirect Costs and Allocation Methods
  11. The Controllership Series: Financial Statement Preparation and Presentation
  12. The Controllership Series: The Controllers Role in the Procurement Function
  13. The Controllership Series: The Role of The Controller in ESG
  14. The Controllership Series: The Controllers Role in Pro Forma Financials
  15. The Controllership Series: The Controllers Role in Data Analytics and Big Data
  16. The Controllership Series: Introduction to the Financial Close Process
  17. The Controllership Series: Managerial Accounting Basics and Cost Principles
  18. The Controllership Series: Sales, Collections and Customer Credit
  19. The Controllership Series: Addressing Cash Flow and Forecasting Uncertainty
  20. The Controllership Series: The Controller’s Skillset
  21. The Controllership Series: The Controllers Role in Internal Controls
  22. Tools for The Controllership Series Certificate
14 Reviews (74 ratings)

Reviews

4
Anonymous Author
Gave a helpful overview of pro forma financials, how they are used, how they are made, what they show, what they don't, etc. Also discussed limitations. Would be helpful to expand upon what the Controller's role is, assuming there is also an FP&A function, and provide best practices for collaboration.
4
Anonymous Author
Good, but I also think of pro forma as a recast of current results adjusted for certain expenses, etc and that wasn't addressed much
5
Anonymous Author
Great job, thank you so much, terrific, amazing!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
5
Anonymous Author
Great summary of proforma financials. I found the examples to be especially helpful in walking through and understanding scenarios.
5
Anonymous Author
Pro forma financial statements are not new category for financial area but definition and usage has valuable to study as reminding.
5
Anonymous Author
Clear presenation helps me understand the definition, functions and applicaiton of proforma financial statements.
5
Anonymous Author
Very basic straightforward explanation of what pro forma statements are and what companies use them for.
5
Member's Profile
The Controllership Series: The Controllers Role in Pro Forma Financials - just the best.
5
Anonymous Author
Great course I recommend this to everyone that wants to learn more about this topic
5
Anonymous Author
This course is an excellent introduction to the pro forma process.
5
Anonymous Author
Good introduction to pro formas. I would recommend for beginners.
5
Anonymous Author
Another good course as I work through the Controllership series.
5
Member's Profile
A great introductory course. Very well organized and presented.
4
Anonymous Author
This is another good course in the Controllership series
show all reviews
Prerequisites
Knowledge Level: Basic
No advanced preparation or prerequisites are required for this course.
Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
  Course Overview CPE
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to The Controller Role in Pro Forma Financials3:26
  Pro Forma Financials11:34
  Types of Pro Forma Statements17:12
  Steps to Creating Pro Forma Statements13:50
  Pro Forma Sales Forecast8:48
  Summary2:42
CONTINUOUS PLAY
  The Controllers Role in Pro Forma Financials57:32
SUPPORTING MATERIAL
  Slides: The Controllership Series: The Controllers Role in Pro Forma FinancialsPDF
  The Controllership Series: The Controllers Role in Pro Forma Financials Glossary/IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam