A 12-month pro forma income statement template is a financial document that outlines a company’s projected financial performance over a 12-month period. It is an essential tool for financial planning and forecasting, as it helps companies understand their expected revenue, expenses, and profits over the coming year. Many different pro forma income statement templates are available online, and businesses can customize them to fit their specific needs.
A 12-month pro forma income statement template typically includes the following sections:
- Revenue
- Cost of goods sold (COGS)
- Gross profit
- Operating expenses
- Net income
What is included in a 12 month pro forma income statement template?
A 12-month pro forma income statement template typically includes the following information:
- Revenue: This section lists all of the company’s sources of revenue, such as sales of products or services, interest income, and rent income.
- Cost of goods sold (COGS): This section lists all of the costs that are directly related to producing or delivering the company’s products or services, such as raw materials, labor, and shipping.
- Gross profit: This section is calculated by subtracting COGS from revenue and provides insight into the profit margin the company is generating from its operations.
- Operating expenses: This section lists all of the company’s expenses that are not directly related to producing or delivering its products or services, such as salaries, rent, and marketing expenses.
- Net income: This section is calculated by subtracting operating expenses from gross profit and provides insight into the final profit margin generated by the company.
How to use a 12 month pro forma income statement template
To use a 12-month pro forma income statement template, follow these steps:
- Identify trends: Analyze the income statement to identify trends in revenue, expenses, and profitability over the past 12 months.
- Set realistic assumptions: Use past performance and industry data to make realistic assumptions about future revenue, expenses, and profitability.
- Produce the statement: Input your assumptions into the template to generate a 12-month pro forma income statement.
- Monitor and adjust: Regularly monitor your actual financial performance against the pro forma income statement and make adjustments as needed to ensure you stay on track with your financial goals.
Conclusion
A 12 month pro forma income statement template is a valuable tool for financial planning and forecasting that helps businesses understand their expected revenue, expenses, and profits over the coming year. By using a pro forma income statement template, businesses can make informed decisions about their operations and ensure they are on track to achieve their financial goals.
It is important to note that a pro forma income statement is not a guarantee of future financial performance. Actual results may vary depending on a number of factors, such as changes in the economy, competition, and consumer demand.
