This Income and Expense Budget Spreadsheet is used for tracking the expenses incurred and the income receives in a business transaction through its MS Excel format.
The income is actually the net amount obtained after subtracting all the expenses from the profit amount. These calculations are made in the income statement; hence, the Income and Expense doc actually looks like an Income statement.
Importance of Income and Expense Budget
An income statement, also known as an Income Expense Budget Spreadsheet, has an essential importance in daily business activities. It helps in tracking the profitability aspects of a business.
Moreover, it gives an idea about how beneficial is investing in the business because it also takes into account the net amount of capital available with the organization in the balance sheet.
A balance sheet is directly linked with the income statement. Similarly, we can also make a statement of cash flows from the income statement. All these financial statements are regularly used in business and form the basis for business transactions.
How to Make Income and Expense Budget Spreadsheet?
Making an income statement is very easy. You can use a Microsoft Excel spreadsheet for this purpose. Just open the spreadsheet and save it with the name of the Income and Expense Budget Template. Open it and mention all the earnings in it.
Write the accurate amount of each earning and find the total earnings. You must write all the earning amounts in the same column. Now write the expenses below the earnings.
Follow the same rule and write the number of expenses in the same column. In this regard, you should mention all kinds of expenses incurred directly or indirectly. For instance, the salaries of employees, maintenance costs, depreciation costs, utility expenses, capital expenses, and all other kinds of expenses in the expense column.
Excel Budgeting Templates
Find the sum of all these expenses. Now you have to subtract the total expense amount from the total earnings amount. Write the net amount in a separate row just below the expense column.
This net amount is the income or profit of your organization. This is the simplest way of finding the total expenses and the total income of any organization.
Almost every business firm employs this technique to keep track of their expenses and profits. In this regard, the taxes are also subtracted from the gross income to obtain the net income amount.
Get Excel Income and Expense Budget Spreadsheet
You can view free sample formats of Expense Budget tracking formats from multiple websites on the internet. However, it is better that you should make your own template by using the MS Excel spreadsheet columns.
This is the easiest way to track your income and expenses because the income statements generally require no special formatting or design.
All you have to do is to insert the expenses and have to find a total sum of them and then, you have to subtract this total from your total earnings, and this requires simple arithmetic calculations. No hard and fast rules apply in making such a template.