Quicken & Other Budget/Accounting Software/Balance Sheet

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Question
Hi,

Do u know the correct formula to do a pro forma balance sheet?

Answer
this website has a nice definition of proforma balance sheet

http://www.wisegeek.org/what-is-a-pro-forma-balance-sheet.htm#did-you-know

The task requires forecasting
First step is to forecast Profit and loss
For that you need the sales department to give you the projected income for the
period, You can then forecast cost of goods sold and overhead expenses based on that income

Next
2. forecasting % of growth in Accounts receivable and
3. forecasting % of growth in Accounts payable
4. Determine cash flow based on the beginning cash
  net change in Accounts receivable
  net change in accounts payable
5. Forecast asset acquisitions during the period
6. Determine how you will finance those asset acquisitions
7. Finally based on the cash flow and asset acquisitions do you
  have enough money to pay for this growth.. If not... now you
  know how much financing you will need to get through the growth
  period


Hope this helps,

Linda Saltz, CPA
Advanced Certified QuickBooks Advisor
http://www.qbalance.com

We sell and support QuickBooks Enterprise
http://www.qbalance.com/enterprise_quickbooks.htm  

Quicken & Other Budget/Accounting Software

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Linda Saltz, CPA, QBalance.com

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QuickBooks best practices, troubleshooting, accounting, tax We have over 70 pages of website content about QuickBooks tips, running a business, tax and business startup at http://www.qbalance.com

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Accountant and CPA over 20 years. Specializing in accounting software for over 12 years, Certified QuickBooks Pro Advisor, QuickBooks seminar instructor since 1997.
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