Business plan financial statements

The functioning of a business organization is entirely based on its financial statements. The management should be aware of the financial status of their company so that they can decide upon their future investments in a very careful manner. Their shareholders and creditors also act according to these sample statements. Normally, these statements are prepared by an accountant or the owner by browsing through a hundreds of documents such as the payroll distribution, the receipts of sales, the list of materials purchased and other such documents. 

These data’s are compiled, accounted and evaluated in a very efficient manner. They can be done in an annual, biannual or a quarterly basis. The "pro forma" statements are the sample statements that the investors and the lenders look forward to. They are hypothetical statements that are prepared on the basis of certain events, namely, the accounts receivable and payable, the expenditures, and the sale of revenues.

 These sample statements include balance sheets, the income statement and the cash flow statement. The balance sheet provides a plain view of the financial status of the company, whereas, an income statement deals with profits and losses. However, the important trends in these business plans are only evident when they are compared with other similar reports.