A Management Focused Tool for Developing Pro-Forma Financial Statements

International Journal of Management and Marketing Research, v. 12(1), p. 61-86, 2019

26 Pages Posted: 18 Feb 2020

See all articles by Terrance Jalbert

Terrance Jalbert

University of Hawaii - Department of Business Administration

Date Written: 2019

Abstract

Developing pro-forma financial statements and associated financial analysis is an important undertaking for new and existing business alike. This paper reports user experiences with a spreadsheet-based method for developing pro-forma financial statements as developed in Jalbert (2017). The paper also presents improvements and enhancements to the template. The forecasting approach reported on here requires users to simply enter their firm-specific figures. As such it is particularly useful for individuals without extensive training in finance. The tool does not require programming or the use of plug figures and does not result in circular references which are all common to other tools. The template provides a powerful tool for entrepreneurs and for teaching management, accounting and finance courses. The tool is suitable for both novice and advanced users.

Keywords: Financial Statements; Pro-Forma Financial Statements, Forecasting, Entrepreneurship, Small Business Finance, Accounting for Small Businesses

JEL Classification: A2, G31, M13, M41

Suggested Citation

Jalbert, Terrance, A Management Focused Tool for Developing Pro-Forma Financial Statements (2019). International Journal of Management and Marketing Research, v. 12(1), p. 61-86, 2019, Available at SSRN: https://ssrn.com/abstract=3523830

Terrance Jalbert (Contact Author)

University of Hawaii - Department of Business Administration ( email )

808-974-7456 (Phone)

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