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Pro Formas
By RISE Business Framework · Created by Gary Harper and Brandon McCurdy · Reviewed
A pro forma is a financial projection built on assumptions about future sales, expenses and capital spending. It shows whether a business will stay profitable over time. RISE uses a three-period worksheet with income, non-recurring expenses and expenses, using the same line items as the P&L.
How RISE does it
- Projects how the business will stay profitable over time.
- Includes assumptions about sales, revenue, expenses and capital expenditures.
- Three columns, one per projected period.
- Shares line items with the P&L so projection and actual line up.
Pro Formas is one of four tools in Finance, part of the Resources quadrant of the RISE Business Framework.
The RISE tool
Pro Forma worksheet line items
Fill in each line for three projected periods.
| Section | Line items |
|---|---|
| Income | Sales, Services, Other Income |
| Non Recurring Expenses | Furniture, Gifts, Other |
| Expenses | Salaries & Benefits, Rent Expenses, Operational Expenses, Depreciation Cost, Subscriptions, Administrative Expenses, Other |
“A pro forma is your financial crystal ball, offering a glimpse into tomorrow’s success. The budget, its trusty companion, turns those visions into reality.”Gary Harper
AI RISE Coach
Work through Pro Formas with the AI RISE Coach
“Walk me through Pro Formas in the RISE Business Framework and help me apply it to my business.”
Quick self-check
“We keep our financial records organized and clean and can generate accurate reports when needed.”
Frequently asked questions
How do you make a pro forma for a small business?
Project income, non-recurring expenses and recurring expenses for three periods based on your assumptions. RISE uses the same line items as your P&L so you can compare later.
What is included in a pro forma?
Assumptions about sales and revenue, expenses, capital expenditures and other financial factors. The RISE worksheet groups them into Income, Non Recurring Expenses and Expenses.
The other tools in Finance
- BudgetsPlan spending and income in four blocks so you can cut costs and fund growth on purpose.
- P&LsRecord actual income and expenses for a period using the same line items as your Pro Forma.
- Variance ReportsCompare budget to actual line by line, calculate the variance and assign an outcome.
Related in another quadrant: Stoplight Reports
