To make a pro forma more effective and accurate, you can follow these tips: 1. Create a spreadsheet where you list past and future years across the top columns, and income and expenses down the side rows. 2. Total all income sources by creating rows for every income source. After itemizing what you've made from each income source, total them up to determine your gross historical revenue. Then, make predictions of your income growth rate for future years by multiplying actual revenue by a reasonable percentage based on your historical numbers. 3. Total all expense sources by adding rows for every expense your company incurs. Next, total them up to determine your gross historical expenses. Then, predict your future expenses. 4. Determine your profit margin by subtracting your total expenses from your total income. Make allowances for major one-time purchases or gross expenses if necessary.
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