Pro forma statements are used to create a budget and determine the need of the company for capital. This need can be short-term or long-term with the pro forma statement extending through years of growth. This gives management realistic numbers of cash needs. By anticipating this need, they won't be unprepared when the need is realized.
Because pro forma statements are estimates, they are flexible and allow for things to be adjusted as needed. Whether they are changes made as suggestions by investors or other ideas that adjust costs, the pro forma statement is dynamic. As the company gets to the implementation stage, actual numbers easily replace the hypothetical assumptions to give an accurate depiction of costs, revenues, and returns on investment data.