{"id":88795,"date":"2022-02-16T20:52:43","date_gmt":"2022-02-16T20:52:43","guid":{"rendered":"https:\/\/monday.com\/blog\/?p=88795"},"modified":"2024-07-24T09:30:16","modified_gmt":"2024-07-24T09:30:16","slug":"pro-forma-template-excel","status":"publish","type":"post","link":"https:\/\/monday.com\/blog\/task-management\/pro-forma-template-excel\/","title":{"rendered":"Ultimate pro forma template for Excel"},"content":{"rendered":"

We\u2019re living in some pretty uncertain times.<\/p>\n

Over the past couple of years, supply chains have been totally redrawn, and businesses have been forced to evolve how and where they do business. In some cases, that\u2019s created tremendous new opportunities organizations can leverage to chalk up some growth.<\/p>\n

But to seize those opportunities, it\u2019s essential to constantly look ahead. That\u2019s where pro forma templates come in handy.<\/p>\n

Pro forma projections are all about looking ahead to try and predict where finances are headed and how hypothetical scenarios could affect the bottom line.<\/strong> Fortunately, there are Excel templates that can help you achieve that \u2014 or even smarter solutions (more on this later).<\/p>\n

This article will explain what a pro forma template is, share our custom pro forma template for Excel, and how monday.com can be used to boost sales forecasting<\/a> abilities.<\/p>\n

Get the template<\/a><\/span><\/p>\n

What is a pro forma statement template for Excel?<\/h2>\n

When doing the books for a business, one of the most powerful tools is the \u201cpro forma\u201d statement. Pro forma \u2014 sometimes written as \u201cproforma\u201d \u2014 is a fancy Latin way to say \u201cfor form.\u201d But how does that super ancient phrase in a dying (dead?) language relate to businesses in the 21st century?<\/p>\n

In accounting, pro forma statements are a way to test out various business situations that might happen in the future. Looking at how those scenarios could play out makes it easier to prepare if they happen in real life.<\/p><\/blockquote>\n

A pro forma template helps teams understand what data is needed to model different scenarios based on pre-built questions. It\u2019s as easy as \u201cfill in the blanks,\u201d … but this can still be pretty labor-intensive. There are plenty of pro forma statement templates in tools like Excel, Google Sheets, or even a Work OS<\/a> like monday.com.<\/p>\n

Get the template<\/a><\/span><\/p>\n

 <\/p>\n

Why use pro forma statement templates?<\/h2>\n

Pro forma financial statements look a lot like regular financial statements<\/a>. The critical difference is that pro forma statements are based on \u201cwhat-if\u201d scenarios, not actual financial results<\/a>.<\/p>\n

Example: What may happen if a business receives a $150,000 loan? Run a pro forma! Produce a statement to look at how that debt would impact cash flow over a certain period.<\/p>\n

Pro forma statements demonstrate to investors and lenders that a company is worth investing in. In addition, it’s easier to prove sustainability by presenting well-researched pro forma statements to a would-be stakeholder.<\/p>\n

Likewise, pro forma statements make it easier to anticipate changes<\/a> that could affect the business \u2014 for example, if the tax liability went up due to entering a higher tax rate.<\/p>\n

That\u2019s why pro forma statements<\/em> are important. But why are pro forma <\/strong>templates<\/em><\/strong> important?<\/strong><\/p>\n

Simply put: they save a whole lot of time. Unless there is a full-time team of accounts with a lot of time on their hands, developing all of these pro forma templates can be time-consuming. It\u2019s also challenging to know where to start.<\/p>\n

A pro forma template means the job is already halfway done. The scenarios are already plotted out in spreadsheet form. All that\u2019s left is to fill in the blanks to make the template unique to the situation.<\/p>\n

What are some examples of pro forma statements?<\/h2>\n

There are 3 significant types of pro forma statements: pro forma income statements, pro forma balance sheets, and pro forma cash flow statements.<\/p>\n

1. Pro forma income statements<\/h3>\n

An income statement is one of the most critical financial statements in every accountant\u2019s toolbox<\/a>. It\u2019s often referred to as a profit and loss (P&L) statement, and it summarizes all net income, net sales, and expenses over a given period.<\/p>\n

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(Image Source<\/a>)<\/p>\n

A pro forma income statement starts like an ordinary income statement based on actual financials. But let\u2019s say it’s important to see the impact of a 30% rise in costs (like energy price, rent, or property price). A pro forma means it\u2019s possible to run this hypothetical scenario by inflating all of the items in the expense columns by 30%.<\/p>\n

The resulting calculations would show how a rise would impact the company\u2019s net profit.<\/p>\n

2. Pro forma balance sheets<\/h3>\n

A balance sheet is a financial statement showing how much a company is worth according to its \u201cbook value.\u201d It does this by listing out all of a company\u2019s assets, liabilities, and owner\u2019s equity for a given date. This date is referred to as a \u201creporting date.\u201d<\/p>\n

Like a pro forma income statement, a pro forma balance sheet would be created by building a balance sheet for a given date based on projected values. For example, create a pro forma balance sheet for 12 months in the future and populate the fields with projected asset values, liabilities, and equity in a year.<\/p>\n

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(Image Source<\/a>)<\/p>\n

3. Pro forma cash statements<\/h3>\nA cash flow statement provides a detailed picture of what\u2019s happened to the organization\u2019s liquid cash balances over a given period \u2014 or \u201caccounting period.\u201d<\/span><\/a>\n

It\u2019s used to show the company\u2019s ability to operate in the long term and short term based on existing cash inflows.<\/p>\n

A pro forma cash statement makes it easy to see how operating activities would be affected if your cash flows were to increase (or dry up).<\/p>\n

Want to create a pro forma template in Excel? The process is straightforward. Start with one of Excel\u2019s pre-built templates and enter all hypothetical numbers.<\/p>\n

The trouble with this method is that it\u2019s super manual \u2014 which is where monday.com\u2019s Pro Forma Template comes to the rescue.<\/strong><\/p>\n

\"Pro<\/p>\n

(Image Source<\/a>)<\/p>\n

The monday.com pro forma template for Excel<\/h2>\n

The monday.com pro forma template is all about helping shake the habit of reactive financial management.<\/strong> With the help of our easy-to-create automations and custom rules, proactively setting up all sorts of hypothetical scenarios will run all day, every day.<\/p>\n

Simply import financials and then use the dashboard on the Pro Forma Template to choose various custom scenarios.<\/p>\n

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This template allows for the following:<\/p>\n