Proforma Essential terms you should know.

Proforma A Term You Need to Know

Proforma is a term used to describe a financial document that predicts future results based on certain assumptions. Proforma financial statements, for example, are projections of a company’s financial performance, usually created to show how the company would perform under a certain set of conditions. Proforma invoices are projections of what an invoice would look like based on certain assumptions about the sale or transaction. Proforma documents are used in a variety of industries, including real estate, finance, and accounting, to provide an estimate of what might happen in the future, given certain assumptions. They are not intended to reflect actual results and are often used to help make business decisions or to secure funding.

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