Pro Forma Income Statements Look At Revenue And Expense Projections For Future Periods. Pro Forma Income Statements Are Generated By Looking At Financial Performance The Year Before, Comparing It To The Current Year Figures And Using The Changes To Make Projections Into The Future. Pro Forma Income Statements Can Be Made Without Past And Current Data As Well. Figures Are Estimated For The First Year And Then Assumptions Are Made About How Those Numbers Will Change In Future Periods. The Most Important Thing With Pro Forma Income Statements Is That You Need To Track Changes From Period To Period And Then Apply Those Changes To The Future. Estimating Pro Forma Income Statement NumbersRevenueHow Much Service Revenue Do You Anticipate Generating? Are You Going To Be Reselling Products And If So, What Do You Anticipate Your Sales To Be Next Year?Will There Be Other Potential Revenue Coming In I.e. Acting As An Agent And Getting Referral Fees From ISPs Or Web Hosts. Cost Of Goods SoldWhat Does It Cost You To Purchase The Items You Are Reselling? Budgeted ExpensesExhibitsSales SeminarsDirect-mail ExpensesPostagePrinting CostsList RentalCopy Editor Or Graphic ArtistSales Call ExpensesGasTollsParkingTelesalesPhone ExpensesDisplay AdvertisingCommissionsIT ExpensesTraining And CertificationResearch And DevelopmentSubscriptionsExtra PCsAdministrative ExpensesPayrollSubcontractorsTelecommunications Expenses - Cell Phone, Business LineInsurance Business, General Liability, CasualTravel And Entertainment Office SuppliesHealth InsuranceCar PaymentsBank FeesCredit Cards FeesProfessional Fees Accountant, LawyerTotal Up Your Revenue - Subtract Your Expenses - You Have A Pro Forma Income Statement. Analyze Your Numbers Against Previous Years Data Or Assumptions About The Future And Create Statements For 3 5 Years Into The Future. Breaking Your Pro Forma Income Statements Down Into Quarters Is A Good Idea. Obviously, The Further Out You Go Out The More Subject It Will Be To Change, But It's Important To Be Thinking About The Future And Putting A Plan Down On Paper.The Bottom Line On Pro Forma Income StatementsPro Forma Income Statements Are An Excellent Planning Tool. They Are Based On Historical Performance And Best Guess Estimates Of The Future. The Numbers On A Pro Forma Income Statement Won't Be Perfect But The Exercise Of Analyzing All Your Sources Of Revenue And Expenses Is One That Will Assist Your Business Planning Process Immensely.Copyright MMI-MMVI, Computer Consultants Secrets. All Worldwide Rights Reserved. Attention Publishers: Live Hyperlink In Author Resource Box Required For Copyright Compliance
