Do you work in a position, which requires you to oversee the finances of your business? Working with numbers can be incredibly tedious and you’ll need to pay very close attention to the fine details. The pro forma balance sheet template is used commonly by businesses, which are responsible for reporting their earnings to shareholders and others each quarter. The document helps to ensure everyone involved in the business is aware of your company’s performance during the year or quarter.
What It Entails
There are numerous details that can be included within the pro-forma balance sheet. The document will generally cover a specific period of time and will include details, such as the cash on hand, long-term investments, rent costs, equipment fees, and revenue for each time period. The document will detail your company’s assets, liabilities, and other key financial details.
Its Purpose
When it comes down to it, the underlying purpose of the pro-forma balance sheet is to provide potential investors and other insiders with information regarding your company’s performance over a period of time. Investors and financial analysts will utilize this information to help them determine how well your company has done and whether or not they should continue investing in your company. In many cases, maintaining records of your financial performance for the quarter is a requirement, so the document is often a necessity.
Preview
