How To Create An Earning Statement In Excel Spreadsheet
Earning statement or income statement is a document used to present a financial report of the business in a certain period of time. This financial report shows the overall revenues gained by the company along with expenses spent during that period of time.
An income statement is issued to show both external and internal stakeholders about the company condition and their financial performance, so they can assess the overall performance and position.
An income statement will calculate net income of the company, this is done by subtracting all expenses made in the period of time from the total income generated during that period time. Depends on how many expenses and income information and details included, this can be a single page or up to several pages.
One of the easiest way to create an income statement is using a template, we can easily fill the fields with expenses and income details. Microsoft Excel has some pre-formatted income statement template which we can use.
Launch Microsoft Excel
Those templates are available in Microsoft Excel program and we need to open it to view our choices. After launch Excel program, we can go to File Menu on the left top and select New.
Use search form to search for income statement template, try keyword like “income statement” or “statement” and press enter. The search result will be displaying available templates which you can highlight to preview and double-click to use (alternatively click on the download button).
Customize the Template
One of the best thing of these templates is customizable, we can modify elements in the template like add extra rows to provide extra income and expenses details and information. You can modify color and other elements accordingly to make the document enjoyable.
Don’t forget to edit the date and company name to make this income statement as accurate as possible.
Enter Income and Expense Details
When the template is ready we can begin add the revenue and expense details to their sections. An income statement is usually divided into several sections for revenue and expenses so that the readers can understand it better.
The template comes with built-in functions to calculate net income, the calculation will auto generated when we enter income and expense details to the above cells.
Save the final result to your computer’s drive, go to file menu -> Save As.