Proforma Financial Statement Service
If you're not familiar with Proforma financial statements, here is a formal definition:
Proforma means “as a matter of form." In financial statements, the term is used when a method of calculating financial projections has been used.
If your business is relatively small, you may not need a sophisticated financial analysis. However, any founder or manager needs to anticipate the company's future financial condition for strategic planning. If you need funding, having this finance tool will enhance your presentation. It demonstrates that you are developing a business that has the intent to succeed and the potential to grow.
You can create these financial statements using free templates and resources online. However, if you are not familiar with financial data, you will get fatigued looking at the templates and samples and then be left to figure out how to use them DIY style. The opportunity for confusion and error is significant. In addition, these free tools are grossly oversimplified and generic. You, primarily, and any loan officer or investor, need to have access to accurate, detailed, and updateable financial data.
I have coached and assisted many founders and startups in this process, irrespective of their background or comfort with understanding financial statements. Interacting with me to develop these financial documents will benefit you both in the short term and provide you with an ongoing management tool to grow your business.
Process
If the Proforma service is not connected to any of my other services, we will begin with a Discovery Call on Zoom. From that dialogue and any existing written information, I will develop an estimate of the timeline and cost to complete your proformas. If you have not started this financial process, then starting from scratch will require some detailed conversations to understand the details of your business venture.
We will build your proforma spreadsheet together using Microsoft Excel, the spreadsheet program universally available and understood. Through our dialogue, I will understand the nuances of your idea or operating business. We will deep dive into your industry, business structure, operations plan, marketing, pricing, profitability, management and employees, taxes, and more. There is also the likelihood that data will need to be acquired through research and competitive vendor quotes before and during the development process.
Timeline
Completion will depend on your existing knowledge of hypothetical vs. verified financial data, the type of business (B2B or B2C), your product/service mix, pricing models, and your value proposition—basically, anything that defines or influences income and expenses. Starting from scratch, this process can take 3 to 8 weeks, including time for research and gathering estimates related to suppliers, logistics, licensing, employees, and a host of elements that will pertain to YOUR specific business.
Deliverable
Your proforma financial statements will include a Profit & Loss Statement, Cash Flow Statement, and Balance Sheet. Typically, the statements will show startup or current expenses, and 3 years of future financial activity broken down as monthly for year one, and quarterly for years two and three.
They are created and presented as an Excel spreadsheet that is both easy to read and completely editable, giving it the properties of a consistent management tool. You will learn how to manage changes to data in real-time as well as for monitoring.
Pricing And Billing
As stated in the Business Plan Development service, a budgeting estimate of $750 to $1500 would be reasonable, depending on the complexity of the business’s operations plan and the depth of analysis needed.
If you are using my Business Plan Development or Business Plan Review service, I will include the Proforma Financial Statement service at a 10% discount off the final price. The billing for the combined services will be included in the invoicing and your payment plan.
Due to the unpredictable time frame from client to client, invoicing for this service is handled as follows:
A good faith deposit of $350 when our Agreement is signed (this Proforma deposit is waived if Proformas are included in one of the Business Plan services), followed by
Four (4) equal payments of the balance due, usually bi-weekly, but this can be discussed further.
The final payment will be delayed until completion, regardless of the total time it may take. At that time, any adjustments, if any, will be made to the final payment.
Your estimate and initial invoice will specify the future payment dates.
If the plan is completed earlier, the final payment of the balance is due within 5 business days of completion.
This payment plan will effectively stagger predictable, affordable payments over a manageable timeframe.
Free And Discounted Update Service
Up to one year after the final invoice payment, I will provide an additional 60-minute call at no charge to answer follow-up questions or assist you with new situations that may have evolved since our initial engagement. Simply email me to request an appointment time.
If additional assistance is needed beyond the free call offer, I will provide any additional time at a 25% discount off my hourly rate.
Guaranty
If any service that I provide does not meet your satisfaction and expectations of the stated deliverable, I will work with you to rectify the situation to an amicable resolution.