1. Pro Forma Income Declaration
Pro forma earnings statements take a look at revenue and expense forecasts for future periods. Pro
forma earnings statements tend to be generated by looking at monetary performance the entire year
before, comparing it to the present year numbers and using the alterations to make forecasts into the
future.
Pro forma income statements can be made without past and current information as well. nUmbers are
believed for the very first year and then assumptions are made about how individuals numbers will
change in future intervals. The most important thing with pro forma income statements is that you
need to track modifications from time period to time period and then apply those modifications to the
future.
Estimating pro Forma earnings Statement Numbers
Revenue
How much support revenue do you anticipate producing ?
Are a person going to be reselling products and if so , what do a person anticipate profits to be the
coming year ?
Will presently there be other potential income coming in i.e. Acting as an agent and getting referral
fees from internet service providers or web hosts.
Cost of products Sold
What does it cost you to purchase the things you are reselling ?

2. Budgeted Expenses
Exhibits
Sales Seminars
Direct-mail expenses
Postage
Printing costs
List rental
Copy editor or graphic artist
Sales Call expenses
Gas
Tolls
Parking
Telesales
Phone expenses
Display advertising
Commissions
IT expenses
Training and certification
Research and development
Subscriptions
Extra PCs

3. Administrative expenses
Payroll
Subcontractors
Telecommunications costs - mobile phone , business line
Insurance business , General liability , Casual
Travel and entertainment
Office supplies
Health insurance
Car payments
Bank fees
Credit cards fees
Professional fees accountant, lawyer
Total up your income - subtract your costs - you have a pro forma income declaration. Analyze your
numbers towards previous years' data or assumptions about the future and create statements for 3 5
years into the future.
Breaking your pro forma earnings statements into quarters may be beneficial. Obviously, the further
away you go out the greater subject it will likely be to change, but it's important to end up being
thinking about the future and putting a plan recorded on paper.
The bottom line on pro Forma earnings Statements

4. Pro forma income statements are an excellent planning tool. They are based on historical overall
performance and best guess estimates for the future. The numbers on a pro forma earnings
statement will not be perfect however the exercise associated with analyzing all your sources of
income and costs is one that can help your business planning process immensely.
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