Preparing the financial statement for Financial Analysis that enables the assessment of the viability of the venture based on the adopted Growth Strategic Plan is usually both challenging and tedious.

In general, preparing the Financial Statement is just the start of venture viability analysis; Financial Analysis has to be performed on the Financial Statement to ascertain the viability of the venture; hence the financial statements are subsequently subjected to financial analysis to generate two essential Financial ratios: The Operating Statistics or ratios shown in Table 1, and the Key Financial Ratios shown in Table 2.

The Operating Statistics is based on the Income Statement, while the Key Financial Ratios is based on the Balance Sheet. The results of these financial ratios reveal the position  of the venture entity relative to the norm within the industry in which the venture-entity conducts business. The astute entrepreneur must develop and use these ratios as would any financing entity. The entrepreneur should use these ratios to adjust the operations or to reposition the venture-entity into conformance with the industry norm.

Evidently, these considerations are important indeed because the Cumulative Profit (Loss) depends on them, but even more significantly it also provides the information about the time-to-turn black, a very critical information in the financial analysis of the venture. Indeed, the assessment of the viability of the venture entails the determination, first and foremost, that the time-to-turn black exists, and then does so within the acceptable empirically determined time-span.

Realistically, the breadth of this task of development of the records for preparing the Financial Statement demands on the entrepreneur to mentally operate the tasks and activities of every business function of the venture, on a daily basis beginning from the first day of Start-up of Operations through the first week to generate the financial records of the week, and then repeatedly perform the sequential  execution of these operations through the venture development time-span, and while so doing generating the daily, weekly, monthly, quarterly and yearly financial records needed to produce the Pro Forma Financial

    
 Statements; and until an efficacious Financial statements, for assessing the efficacy of the Growth Tactics Plan ascertaining the viability of the venture, is developed.

In the event that such efficacy can not be ascribed to the Growth Tactics Plan at the conclusion of each such Thought Experiment administration and management of the venture, then this process is repeated with revisions of the Growth Tactics Implementation Plan in terms of the performance schedules, or the Growth Tactics Plan or the Venture Growth Strategic Plan, or some combination of them or all of them: The Thought Experiment administration and management of the venture is repeated until an efficacious Business Plan is developed, or the venture abandoned as having no prospective viability.

The number years going into the future for which the Financial Statement must be prepared varied by industry. However, for brand new ventures, the minimum time-span into the future for venture development, which an entrepreneur must be capable of visualizing, has been determined for different industries: Over the years, venture development records and experiences have enabled the empirical determination of these time-span: The time-to-turn black from inception of operations or funding - effectively the time the venture takes, from start of operation, to elimination the cumulative loses of the operations start-up - is as listed for the industries as shown in Table 3. The characterization of "time-to-turn black" obtains  the days of manual Accounting when company that was losing money had its loses written in red-ink

to signify trouble and profits are written in black-ink , respectively said to be "in the red" and "in the black". The Financial Statements for specific industrial category must be prepared for time-spans extending into the future that are, at least, the empirical time-to-turn black plus one year; however, the preferable number of years beyond the time-to-turn-black is three years.

 Given the very iterative and tedious nature of the preparation of the venture Pro Forma Financial Statements, there is therefore the preference for using a software to avoid the tedium and the iterative analysis due to scenario-specificity optimization inherent in the strategic plan during the development of such financials.

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However, one source of the difficulty in using a software in preparing the Pro Forma Financial Statements, of course, is that there are not  many software within the budget of the entrepreneur that can effectively allow the preparation of the Financial Statements in consistence with the design of a preferred organizational structure. Often the software that is used is not sufficiently adaptable as to satisfy the custom adopted design of the venture organizational structure and business processes and  consequentially Accounting System. The entrepreneur therefore is often forced by the software design to adopting an organizational and business processes designs that are less than optimal for the venture being developed. Of consideration in this respect is that the depreciation and amortization formula the entrepreneur prefers to adopt as opposed to the formula a specific software offers may be different.

Sometimes, using software to avoid the tedium inherent in the iterative preparation of the financial statements as it is being developed, causes lack of reconciliation between the Financial Statements and the Growth Tactics Business Plan and Growth Tactics Implementation Plan to comes about. Admittedly, in those situations, when any reconciliation occurs even with the use of software, the culprit is most likely that the software being used is not well-conceptualized and well-developed;  of course, this can get even worse when the entrepreneur has no access to the developer to further customize the software so as to efficaciously support the venture structural and processes needs.

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