A financial statement proposal is a document which quantitatively presents the financial situation of the company by giving a summary of the different financial aspects of the business operations. The various documents or points mentioned in a financial statement proposal includes the income statement, the balance sheet, the cash flow statement, changes in net worth which describes the financial health of a company in a particular quarter or a financial year. The proposal must lay down the purpose of the proposal and how the presentation of financial statements in beneficial for developing a financial management system for the company. It must also mention how funds borrowed by the company from lenders and shareholders have been used.

Sample Financial Statement Proposal:

Proposal submitted by: Midas Touch Gems

Address: 3429 Knight Road, Oakland

Proposal prepared on: February 12, 2012

Proposal submitted to: John Berry

President, Midas Touch Finances

Proposal submitted on: February 14, 2012

Proposal name: Submission of quarterly financial statement

Purpose: The primary purpose of creating this proposal is to present the need of creating and submitting the company’s financial statements every quarter by giving figures if the cash flow statement, income statement and the balance sheet.

Details of Financial Statement Proposal:

  • The company’s current assets including cash, accounts receivable, deposits, inventory, investments and property equipment will be mentioned
  • The liabilities of the company like bank loans, income tax payable, long-term debt and accrued liabilities will be laid down
  • Revenue figures, sales figures, gross profit, operating expenses and income from operations etc will be mentioned