Top 5 Proforma Templates with Samples and Examples

Q: How is a proforma written?

The steps to take when writing a proforma are as follows: 1 - Survey your present income statement Scrutinize your income statement and isolate the variables that are likely to change through the breadth of the year. 2 - Draft your revenue projections for the future period You can build upon a plethora of data, ranging from market trends, past earnings and industry benchmarks to cast projections for your future sales and revenue. 3 - Calculate your cost of goods sold and gross profit Cost of goods sold (COGS) is the underlying cost of producing the goods relevant to your business, and includes a range of metrics including labor, materials, overhead costs, etc. Gross profit is the calculated difference between your revenue and COGS. 4 - Calculate your operating expenses and net income Operating expenses are the other non-essential costs of running your business, and include variables such as utilities, rent, salaries, marketing, and interest. The difference between your gross profit and operating expenses forms your net income. 5 - Formulate your proforma income statement Employ all of the above metrics and data to formulate a proforma create a proforma income statement to format your proforma statement. Compare the data with your income statement to identify any potential discrepancies and revise the statement as needed.

Q: What is the purpose of a proforma?

Here are a few underlying purposes of a proforma: 1 – To project future financial performance Pro forma financial statements are essential to predicting future revenue, expenses, and net income. This information can assist a company’s management in making informed business decisions, such as whether to widen operations, invest in new gear, or gather new employees. 2 – To attract investors Pro forma financial statements can be helpful when potential investors survey an organization's potential. By providing investors with a glimpse of what the organization's financial future may look like, pro forma financial statements can help build confidence among investors and enlist new investment. 3 – To track progress over time Pro forma financial statements provide vital tools to monitor an organization's progress over time. By comparing actual results to projected results, management can isolate areas where an organization needs to improve. 4 – To identify potential problems early on Pro forma financial statements help organizations uncover potential problems early on. This helps the company’s leadership in pre-emptively working to curtail the impact of these problems before they take shape.

The financial underpinnings of the world of business are often messy and complicated. When running a large-scale enterprise, managers need to prepare for complex transactions involving multiple parties, countries, and currencies. They need to approximate costs, fees, taxes, and risks involved in each transaction and all of the deals they contain.

One of the most effective tools that those in the upper echelons of business deploy to help them carry this great burden is the proforma document.

Proforma documents are an essential ingredient in the world of finance and auditing. They help to create an environment where numerous parts of a business’s financial apparatus can run smoothly. They are preliminary agreements that can assist both parties to plan and prepare for a broader deal, and can be instrumental in conveying the expected costs, fees, and delivery date of product, communicating the value and description of the goods for customs clearance and tax calculation. They can also provide great value in other circumstances, such as in scrutinizing the risk and potential in an upcoming business decision, such as an expansion or a merger.

Are you having trouble drafting profit and loss statements? We’ve got you covered. Click here to check out our blog delving into ten profit and loss statements to build financial utility for your company.

In this blog, we’re going to be looking at the Top Five Proforma Documents that can be adapted and utilized by companies in various environments. These PPT Templates can be downloaded, edited, and deployed with ease, ensuring that you add value to your business operations when using them. Let’s begin.

Template 1 - Proforma Condensed Combined Statements of Operations Pitchbook

Keep track of your internal financial processes is sometimes a hefty and taxing process. Cut through the clutter and establish focus with the aid of this nicely rendered PowerPoint theme. It comes with all of the vital ingredients for a pro forma state of operations and is especially beneficial during a merger. Some of the key components of the graph rendered within the slide are ‘costs of revenue, exclusion of depreciation and immortalization’, ‘operating income’, ‘income before taxes’, ‘interest expense’, ‘selling, general and administrative expense’, and more. Download this slide now!

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Template 2 - Pitchbook Business Selling Deal Pro Forma Condensed Combined Statements of Operations

This vibrant and enticing slide can be a potent tool for managers working to understand the financial intricacies of their company. The slide comes with a graph that is readily designed for the post-acquisition financial details of a company, thereby making it a valuable tool for a company that is undergoing an acquisition process. Some of the subheadings within the graph include ‘pro forma adjustments’, ‘pro forma combined’, ‘your company’, alongside others such as ‘operating income’, ‘net income’, ‘revenue’ and more. Get it now.

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Template 3 - One-Pager Automobile Business Plan With Pro Forma Income Statement

This slide can be a handy tool for anyone in the automobile space struggling to integrate their financial apparatus with their broader business capabilities. The slide comes with a plethora of crucial elements that make for a thorough and cogent pro forma statement, with the aid of ‘company overview’, ‘mission’, ‘purpose’ near the top of the slide, along with ‘operating expenses’, ‘total selling expenses’, ‘total general and administration’, ‘net income after taxes’, ‘salaries and wages’, ‘total cost of goods sold’, and many more subheadings covering the rest of the slide. Get it now.

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Template 4 - Pain Points in Client Onboarding Clients Perspective Proforma

Conduct a more thorough internal examination to improve your onboarding practices and strengthen financial returns, all with the help of this animated PPT Slide. It comes with rich internal data meant to assist managers in conceptualizing a stronger vision of their client retention abilities. Some of the subheadings essential to the layout include ‘customer adoption’, ‘customer management’, ‘on board customer’, as well as ‘regulatory and compliance check’, ‘proposals’, ‘product set-up’, ‘account set-up’, ‘service enablement’ and more. Get it now.

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Template 5 - One-Pager Concierge Services Pro Forma Business Plan Presentation Report

Make use of this content-rich PowerPoint Theme to cultivate a strong financial view of your company, giving you the tools to make appropriate decisions and plan for the future. Some of the variables included in the slide are ‘sales’, ‘total operating expenses’, ‘net profit’, ‘subtotal cash received’, ‘subtotal cash spent’, ‘total liabilities and capital’, ‘total assets’ and more.

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Conclusion

Pro forma documents can be useful tools when organizing and planning numerous aspects of a business or project. They can help to draw sound estimations of revenues, cash flows, expenses, budgets, and other financial parameters. They can also help to convey the goals and methodologies of a business to potential investors or customers. Our pre-designed pro forma templates come with the advantage of being easy to use and easy to alter. Download our templates and deploy them in your own business fray to gain a competitive edge over your rivals and make better returns.

Looking to dive deeper into the financial aspects of business? Click here to read our blog covering cash flow templates.

Frequently Asked Questions on Proformas

What is a proforma?

A proforma is a financial statement that uses certain internal variables to forecast the expected financial performance of a company over a period of time. They are used in the business world for a host of purposes, such as allowing potential investors to scrutinize the underlying earning potential of a company. Such statements build their projections on hypothetical data and estimates that may be consistent with the real time outcome. Proforma financial statements can include proforma balance sheets, proforma income statements, and proforma cash flow statements.

How is a proforma written?

The steps to take when writing a proforma are as follows:

1 - Survey your present income statement

Scrutinize your income statement and isolate the variables that are likely to change through the breadth of the year.

2 - Draft your revenue projections for the future period

You can build upon a plethora of data, ranging from market trends, past earnings and industry benchmarks to cast projections for your future sales and revenue.

3 - Calculate your cost of goods sold and gross profit

Cost of goods sold (COGS) is the underlying cost of producing the goods relevant to your business, and includes a range of metrics including labor, materials, overhead costs, etc. Gross profit is the calculated difference between your revenue and COGS.

4 - Calculate your operating expenses and net income

Operating expenses are the other non-essential costs of running your business, and include variables such as utilities, rent, salaries, marketing, and interest. The difference between your gross profit and operating expenses forms your net income.

5 - Formulate your proforma income statement

Employ all of the above metrics and data to formulate a proforma create a proforma income statement to format your proforma statement. Compare the data with your income statement to identify any potential discrepancies and revise the statement as needed.

What is the purpose of a proforma?

Here are a few underlying purposes of a proforma:

1 – To project future financial performance

Pro forma financial statements are essential to predicting future revenue, expenses, and net income. This information can assist a company’s management in making informed business decisions, such as whether to widen operations, invest in new gear, or gather new employees.

2 – To attract investors

Pro forma financial statements can be helpful when potential investors survey an organization's potential. By providing investors with a glimpse of what the organization's financial future may look like, pro forma financial statements can help build confidence among investors and enlist new investment.

3 – To track progress over time

Pro forma financial statements provide vital tools to monitor an organization's progress over time. By comparing actual results to projected results, management can isolate areas where an organization needs to improve.

4 – To identify potential problems early on

Pro forma financial statements help organizations uncover potential problems early on. This helps the company’s leadership in pre-emptively working to curtail the impact of these problems before they take shape.

What is a proforma invoice?

A proforma invoice acts as a preliminary invoice that is presented to a buyer prior to a transaction being completed. It is a document that underscores the terms of the transaction, such as the delivery date, price, and quantity of the goods or services being sold. Though it isn’t a legally binding document, a pro forma invoice can be used to outline the terms of the exchange, ensure that both parties understand the main features of the transaction.