A projected balance sheet, also referred to as pro forma balance sheet, lists specific account balances on a business’ assets, liabilities and equity for a specified future time.
A pro-forma balance sheet is a tabulation of future projections and can help your business manage your assets now for better results in the future. It can assure that there are no surprises in the future when it comes to paying your bills, getting returns on investors, and keeping your inventories in stock.There should be mainly set of assets and liabilities on the projected balance sheet for the next 3-5 years. The asset will again contain Log term assets (Non current assets ) and current assets. The long term assets will include the building, land, machinery and vehicles , were as the current asset includes the cash in hand/bank, receivables and sock for the short term. At the liability side we have Non current liabilities and current liabilities. In the non current liabilities it includes the term loan and current liabilities includes the account payable and sort term loan such as working capital loan.
By showing this report, bank will get the confidence that the business unit is worth viable to invest / provide the loan. Here the non -finance/accounting people will be confused on how to create the balance sheet. Don’t worry, Finline has made it so easy, as you just need to fill the questions asked by the intelligent software based on your answer, our software will create the projected balancesheet .
