What is a pro forma budget?

A pro forma operating budget displays all of the information of an organization's revenue-generating activity, focusing on an overview of profit and expenses concerning a specific project or project. A company then uses this data and information to assist in determining the company's master budget.

Pro forma operating budgets can reflect the following items:

• Cash inflows

• Cash outflows

• Net revenues

• taxes

These items are determined by a company's cash flow statement, and estimations included on a company's balance sheet at the end of an accounting period. Pro forma budgets can be expansive or short documents depending on these factors:

• The size of the company uses the pro forma budget

• The number of projects in a pro forma budget

• The scope of the specific company's business operations