How to Build a Pro Forma
In this week’s Whiteboard Friday, host Matt McDonnell walks us through how your organization can build and begin working with a pro forma statement.
A pro forma is a financial statement, or forecast, based on certain assumptions about your business that helps you project future profits. For example, a nonprofit might want to see the effects of three different revenue-generating options. Once you’ve identified the components necessary to practice unit economics, your organization can begin predicting revenue in a pro forma on its way to becoming scalable.