simple bookkeeping spreadsheet

Purchases made on credit for items like inventory, supplies, or equipment, could result in multiple monthly payments made to different vendors or suppliers. This accounts payable template helps you to keep track of what you owe to each party. It also provides a quick look at the total QuickBooks outstanding balances and due dates. To get started quickly, it will be helpful to use these free accounting templates. We have created a set of well designed free accounting templates. We have included them here for you to download, along with a description of when to use each.

simple bookkeeping spreadsheet

Expense designates any account used to track money leaving your business. Income designates any account used to track money coming into your business. If you’re planning to do your small business accounting with Excel, this is one of those times. Ryan Smith writes for Bench, the online bookkeeping service that pairs you with a dedicated bookkeeping team and elegant software to do your books for you. After you’ve edited and added all of the different sheets within your master Excel bookkeeping document, you’ll want to be sure to save the file in a secure location on your computer or drive. This system of accounting is different from the double-entry method, in which you enter every transaction twice, once as a debit, and once as a credit. For example, you can potentially start a social media consulting business for less than $5,000.

Adding & Subtracting Currency Columns In Microsoft Excel

Use a cash flow statement template, in conjunction with your balance sheet and income statement, to provide a comprehensive look into the financial status of your company. This cash flow template includes two additional worksheets to track month-to-month and year-to-year cash flow. The accounting journal is an accounting worksheet that allows you to take each of the steps from your trial balance to the financial statements – the balance sheet and income statement. This accounting journal template includes sections for their debits and credits, and pre-built formulas to calculate the total balances for each column. Accounting is a term that embodies a whole raft of financial activities while bookkeeping is specifically literally the keeping of books of account. For non limited companies that do not need to produce a balance sheet then a simple income and expenditure account can be produced much simpler using single entry bookkeeping principles.

In this article, we’ll outline everything you need to know about how to track your company’s financials accurately. We’ll cover the primary problems with Excel and the risks of using it as an accounting spreadsheet. We’ll also dive into the benefits that today’s accounting software can offer. ● Excel accounting spreadsheets can also be used to track benefits costs. Take the total cost of compensation into account whencalculating payroll expenses. If you use an accountant oronline payroll service, a simple spreadsheet that keeps track of basic salary, hours worked, and so on should be plenty.

simple bookkeeping spreadsheet

This is the sheet that tells you if you’re profitable or not. Also known as the profit-and-loss statement, the income statement compares expenses and revenue over a certain period of time, usually monthly. It takes money-in and money-out and shows the net earning of your business. It’s important to keep an eye on your total income while you track more nuanced expenses like interest, taxes, and uncategorized expenses. Having set up two bookkeeping spreadsheets the task is then to produce the income and expenditure account by collecting the totals of each of the analysis columns. The sales total is the sales turnover from which is deducted the totals of each of the expenditure classification totals with the result being the net profit and loss of the business.

Keeping Your Books Up To Date In Excel

A general ledger is the master accounting report of every business. It brings together your assets, liabilities, income, expenses, and everything else that tells you where your business currently stands.

I’m re-purposing your simple spreadsheet to work for a small non-profit. I’ve changed the account columns to more closely reflect the business model but now I’m stumbling over the error-checking logic for the ‘Oops’ message. For some reason the self tallying “balance D” column is not self tallying.

Plus, as your business grows, it will become more and more difficult to manage your Excel bookkeeping system. Once you’ve completed your income statement for the month, you’ll want to make sure to save your Excel bookkeeping file. Finally, the income statement sheet will be where the numbers from your list of transactions are copied over, either automatically or by hand. The income statement contains the calculations that summarize what you’ve spent and what you’ve earned, and also shows you your net income.

I, too, have a bookkeeping spreadsheet I’ve been selling for many years. It is a step up from your free bookkeeping spreadsheet and works great for the do-it-yourself types. I would be glad to show you a remote demonstration of how it works.

A list of our real estate licenses is available here. Stay on top of your bookkeeping with this easy-to-use worksheet that you can personalize to meet the needs of your rental business. Accounting software handles all the calculations for you, and does it properly. I did leave a few empty spots so you can add in your own things that may be relevant to your business. On the worksheet I provided, I have several areas in the second sheet that you can input shipping for Etsy, Amazon and your website.

Enter its relevant account under the Category column. Be sure to type it exactly as it appears on the Chart of Accounts. The Income Statement will look at the data you enter in order to figure out how the transaction will be categorized. Every time a transaction takes place—whether you’re moving money, cash, or credit—you need to enter it into the Transaction sheet, in its own row. In order to generate monthly Income Statements, you’ll need separate sheets for each month. Make twelve copies of the original income statement, one for each month in the year.

By simply looking through my bank statements, I will find it and just type it in there. There may be times where you need to hire a contractor to do work for you. If this is the case for you, you need to add up those expenses and plug it into this cell under the corresponding month and you’re all done! The best way to keep track of this is to make sure everything goes out of ONE account. I still save receipts for everything, but since I charge everything to this ONE business account, my bookkeeping practices have becomes very stress free.

simple bookkeeping spreadsheet

Conversely, double-entry bookkeeping is meant for larger, more intricate businesses, recording both the debit and credit side of each transaction. Bookkeeping is an essential activity for every business. The practice keeps you organized while providing a direct look into the health of your cash flow. The Smartsheet platform makes it easy to plan, capture, manage, and report on work from anywhere, helping your team be more effective and get more done. Report on key metrics and get real-time visibility into work as it happens with roll-up reports, dashboards, and automated workflows built to keep your team connected and informed. Whenever you or your team are scheduled for business trips, it’s helpful to have a travel itinerary that lists the details for transportation, lodging, car rentals, meetings and more.

Have a business account specifically dedicated to all your expenses and revenue. So when you download this bank statement at the end of the month to do bookkeeping, everything is in one place. This also includes packaging for your product and not just the product itself. I tend to buy all my supplies for my office in the same places and my materials for my product in the same places so on my spreadsheet I have the list of the vendors on there. So to make it easier for me, I just make sure that I purchase on separate receipts if its a different type of expense AND continue to purchase from the same vendors so I am organized.

Later some of that will go under the expenses of online selling fees, and shipping paid. This is not required by tax accountants but I like to do this to see how much I spent in certain categories. Fill in the promoted listings number on the second tab of the worksheet. Again, doing it this way instead of just one big chunk of a revenue number, allows you to understand how money is being generated in your business so you can make decisions based on those numbers. I’ve never really been in a position to keep income records and expense reports for a business- it’s good to know what the starting points are.

Why Use Google Sheets Templates

I have this broken up into section on the second sheet of your worksheets. There is one for the Etsy billing section simple bookkeeping spreadsheet AND for Amazon fees, and even one for your dot com. Depending on what other platforms you sell on and have fees on.

  • Capterra small-business budget template has been a fan favorite since it was published in 2015.
  • That saves you from having to build something yourself.
  • The cost of a tool like Excel has nothing to do with the sticker price.
  • The bookkeeping entry for as sales invoice is basic.
  • I’d encourage anyone with more accounting know-how to add some nuance to what exists here.

The spreadsheet is not sophisticated enough to handled capital accounts. It is designed for a sole proprietorship with just one owner, and with very few balance sheet accounts besides cash. You could add columns for each capital accounts, but that would throw off some of the check figures.

1-800Accountant assumes no liability for actions taken in reliance upon the information contained herein. Bookkeeping for small businesses doesn’t have to be complex. Don’t hesitate to seek advice from the experts to guide your small business through this global crisis.

Add Or Remove Accounts From The Chart Of Accounts

Keeping track of your business expenses is essential to a headache-free tax time. Knowing your expenses is also essential when it comes to determining your profits and taxes owed. The Accounting Software Templates from Freshbook help you manage your bookkeeping with ease.

Using this process of inputting transactions, you’ll manage your small business bookkeeping in Excel on a day-to-day basis. At the end of every month, however, you’ll want to use the income statement sheet we described above to get insights on your income, expenses, and profit. If you create your own bookkeeping Excel sheet, on the other hand, you’ll either have to manually perform these calculations or input the accounting formulas yourself. Income statements are indispensable for your business.

If a customer pays for a product, you enter income. For each type of transaction, you either add or subtract the amount from the account balance. QuickBooks The easiest way to ensure you have all of the column headings you need is to enter some of the data you will be including in your accounts.

Cash Flow Forecast Template

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Excel might work when you first start your business. But as your company grows, things change — you might change your prices, raise financing, roll out a few new products or hire a few people. Before you know it, your spreadsheet can’t keep up with your business finances.

Author: Justin D Smith