What Is Pro-Forma Financial Statement And Why Is It Important

1. What is Pro-Forma Financial Statement and why is it important to a business? What are recommended approaches to prepare Pro-forma Financial Statements for a small business based on your research?Pro-Forma Financial Statements are financial statements that are used to project a future financial position or future financial returns for new businesses or relating to major changes. Pro-Forma Financial Statements are important to a business because they are used for decision making planning and control. They can be used for external information to investors and creditors as a basis for comparison and analysis to provide an idea of returns and financial structure under various conditions.The American Institute of Certified Public Accountants (AICPA) and the Securities and Exchange Commission (SEC) require standard formats for presenting pro forma statements. In addition Pro-Forma Financial Statement must also show the most comparable statement on the company's finances, prepared using Generally Accepted Accounting Principles (GAAP).2. (Look into a small business organization in your area or your State), would you join this organization? Is there anything on their website, such as an upcoming event, that you would consider attending? What the benefits of joining and networking?I would like to join Arizona small business association. They have