Starting a small business may be the best way to earn an income, but you must also have financial records on hand to keep track of your Small Business Income and Expenses Spreadsheet. While there are many free software programs available, we’ve found that Excel is a better choice than Quicken or Outlook. Using a spreadsheet can help you keep tabs on your business as well as schedule expenses.
It’s important to record all financial activity. However, if you do not have the time or inclination to make or design your own accounting system, you can get an excellent version of the software free online.
A detailed income statement should be accurate and include all sales information. A summary will show the income received and paid for a specific period of time.
In addition to the Income and Expenses Statement, you’ll need to calculate payroll deductions and the difference between your expenses and your gross revenue. You should include all your assets, liabilities, inventory, and working capital on this portion of your spread sheet.
How does your profit look? Typically, your profit reflects the gross profit minus your expenses. Expenses include your profit, or expense figures as well as your payroll, taxes, and other miscellaneous expenses.
In order to get a detailed picture of your income statement, include both of these sections in your spreadsheet. It is important to have these parts complete before you move onto your expenses section. Before adding any new entries, be sure to double check any calculations you have done so you do not have any mistakes on your expense report.
Finally, enter each of your small business income and expenses into the appropriate column. This will help you to create a standard format for your spreadsheet. The profit will be given the highest priority because it will appear first in the income statement.
In order to save time and make sure your income and expenses spreadsheet are accurate, it is advised that you use your free Small Business Income and Expenses Spreadsheet once a month. It will help you to document all of your small business income and expenses, keeping it handy and up-to-date. Follow these guidelines, you can easily keep your personal and small business financial organized and up-to-date.