If you want to** automate financial statements in Excel**, you have come to the right place. Here, we will walk you through some easy steps to do the task effortlessly.

## What Is Financial Statement?

**Financial statements** also known as **financial reports** are summary documentation of the financial condition of an organization. The financial statement contains a company’s performance throughout the year.

## Download Practice Workbook

You can download the **Excel file** and practice while you are reading this article.

## Steps to Automate Financial Statements in Excel

The following picture shows a **Trial Financial Statement** of** ABC company**. Using this **Trial Financial Statement**, we will show you how you can **automate financial statements in Excel**. Here, we used **Microsoft Office 365**. You can use any available Excel version.

### Step-1: Calculating Total Current Assets to Automate Financial Statements in Excel

In** Financial Statement**, an** Asset** is a combination of** Current Assets**, **Fixed ( Long Term Assets)**, and **Other Assets**.

In this step, to **automate financial statements in Excel**, we will calculate the total **Current Assets** of the **financial statement**. Here, from the **Trial Financial Statement**, we know that current assets are **Cash**,** Account Receivable**,** Prepaid Insurance,** and **Inventory**.

- First of all, from the
**Trial Financial Statement**, we will insert**Cash**,**Account Receivable**,**Prepaid Insurance,**and**Inventory**in the**Current Assets**group.

Here, if you have more current assets in your trial** Financial Statement**, you can include them in the **Current Assets** group.

Then, you can see **Current Assets** in cells **C7:C10**.

- After that, in cells
**D7:D10**, we insert the values of**Current Assets**from the**Trial Financial Statement**.

- Afterward, we will use
**the SUM function**to calculate the**Total Current Assets**.

To do so, we will type the following formula in cell **D11**.

`=SUM(D7:D10)`

Here, **the SUM function **adds up the cells **D7:D10**.

- At this point, press
**ENTER**.

As a result, you can see **Total Current Assets** in cell** D11**.

**Read More:** **How to Prepare Financial Statements from Trial Balance in Excel**

### Step-2: Computing Total Fixed Assets

In this step, to **automate financial statements in Excel**, we will calculate the** Total Fixed Assets**. **Fixed Assets **are also known as** long-term assets**. From the **Trial Financial Statement**, we identify **Equipment** and** Long Term Investment** as **Fixed Assets**. Next, we will calculate the** Total Fixed Assets**.

- In the beginning, from the
**Trial Financial Statement**, we will insert**Equipment**and**Long Term Investment**in the**Fixed ( Long Term Assets)**group.

Here, if you have more fixed assets in your trial** Financial Statement**, you can include them in the **Fixed ( Long Term Assets)** group.

As a result, you can see fixed assets in cells **C13:C14**.

- Next, in cells
**D13:D14**, we insert the values of**Fixed Assets**from the**Trial Financial Statement**.

Furthermore, we will use **the SUM function** to calculate the **Total Fixed Assets**.

- To do so, we will type the following formula in cell
**D15**.

`=SUM(D13:D14)`

Here, **the SUM function **adds up the cells **D13:D14**.

- At this point, press
**ENTER**.

As a result, you can see **Total Fixed Assets** in cell** D15**.

**Read More:** **How to Create a Personal Financial Statement in Excel**

### Step-3: Finding Other Assets

In this step, to **automate financial statements in Excel**, we will calculate the **Total Other Assets**. Here, our **Trial Financial Statement **has **Income Tax** in it which must be put in other asset groups.

- First, from the
**Trial Financial Statement**, we will insert**Income Tax**in the**Other Assets**group.

As a result, you can see the** Income Tax** in cell **C17**.

Here, we also put** Other** in cell** C18**. This is because if in the future there are one or more assets included in the** Trail Financial Statement** then we will use their value as** Other** assets.

- Afterward, in cell
**D17**, we insert the values of**Income Tax**from the**Trial Financial Statement**.

Then, we will use **the SUM function** to calculate the **Total Other Assets**.

- To do so, we will type the following formula in cell
**D19**.

`=SUM(D17:D18)`

Here, **the SUM function **adds up the cells **D17:D18**.

- Next, press
**ENTER**.

Hence, you can see **Total Other Assets** in cell** D19**.

### Step-4: Determining Total Assets to Automate Financial Statement in Excel

In this step, to **automate financial statements in Excel**, we will calculate the **Total Assets. **

- First of all, we will type the following formula in cell
**D21**.

`=D11+D15+D19`

This simply adds **Total Current Assets**, **Total Fixed Assets,** and **Total Other Assets**.

- Moreover, Press
**ENTER**.

As a result, you can see the **Total Assets** in cell **D21**.

### Step-5: Calculating Total Current Liabilities to Automate Financial Statements in Excel

In** Financial Statement**, **Liabilities and Owner’s Equity **is a combination of** Current Liabilities**, **Long Term Liabilities**, and **Owner’s Equity**.

In this step, to **automate financial statements in Excel**, we will calculate the total **Current Liabilities.**

- First of all, from the
**Trial Financial Statement**, we will insert**Salary Payable**,**Unearned Revenue**, and**Tax Payable**in the**Current Liabilities**group.

Here, if you have more current liabilities in your trial** Financial Statement**, you can include them in the **Current Liabilities **group.

Then, you can see **Current Liabilities** in cells **C25:C27**.

- After that, in cells
**D25:D27**, we insert the values of**Current Liabilities**from the**Trial Financial Statement**.

Furthermore, we will use **the SUM function** to calculate the **Total Current Liabilities**.

- To do so, we will type the following formula in cell
**D28**.

`=SUM(D25:D27)`

Here, **the SUM function **adds up the cells **D25:D27**.

- After that, press
**ENTER**.

Hence, you can see **Total Current Liabilities **in cell **D28.**

### Step-6: Computing Total Long Term Liabilities

In this step, we will calculate the total** Long Term Liabilities. **

- First, from the
**Trial Financial Statement**, we will insert**Long Term Loan**,**Long Term Account Payable**, and**Income Tax**in the**Long Term Liabilities**group.

Here, if you have more long-term liabilities in your trial** Financial Statement**, you can include them in the** Long Term** **Liabilities **group.

Then, you can see **Long Term Liabilities** in cells **C30:C32**.

- Then, in cells
**D30:D32**, we insert the values of**LongTerm Liabilities**from the**Trial Financial Statement**.

Furthermore, we will use **the SUM function** to calculate the **Total Long Term Liabilities**.

- To do so, we will type the following formula in cell
**D33**.

`=SUM(D30:D32)`

Here, **the SUM function **adds up the cells **D30:D32**.

- Moreover, press
**ENTER**.

Therefore, you can see **Total Long Term Liabilities **in cell **D33.**

### Step-7: Finding Total Owner’s Equity to Automate Financial Statements in Excel

In this step, to **automate financial statements in Excel**, we will calculate the total **Owner’s Equity. **

- First, from the
**Trial Financial Statement**, we will insert**the Owner’s Investment**and**Authorized Share**in the**Owner’s Equity**group.

Here, if you have more owner’s equity in your trial** Financial Statement**, you can include them in the** Owner’s Equity **group.

Then, you can see **Owner’s Equity** in cells **C35:C36**.

- Then, in cells
**D35:D36**, we insert the values of**Owner’s Equity**from the**Trial Financial Statement**.

After that, we will use **the SUM function** to calculate the **Total Long Term Liabilities**.

- To do so, we will type the following formula in cell
**D37**.

`=SUM(D35:D36)`

Here, **the SUM function **adds up the cells **D35:D36**.

- Then, press
**ENTER**.

As a result, you can see the** Total Owner’s Equity** in cell **D37**.

### Step-8: Determining Total Liabilities and Owner’s Equity to Automate Financial Statements in Excel

In this step, to **automate financial statements in Excel**, we will calculate the **Total Liabilities and Owner’s Equity. **

- First of all, we will type the following formula in cell
**D39**.

This simply adds **Total Current Assets**, **Total Fixed Assets,** and **Total Other Assets**.

`=D28+D33+D37`

This simply adds **Total Current Liabilities**, **Total Long Term Liabilities,** and **Total Owner’s Equity**.

**ENTER**.

As a result, you can see the **Total Liabilities and Owner’s Equity **in cell** D39**.

Therefore, you can see complete **automated financial statements in Excel**.

**Read More:**** How to Link 3 Financial Statements in Excel (with Easy Steps)**

## Calculating Common Financial Ratios in Financial Statements

Financial statements have several financial ratios in them. These ratios give an overall view of the financial statements. Let’s go through the following steps to find out common financial ratios.

### Step-1: Calculating Debt Ratio

In this step, we will calculate the** Debt Ratio** of the financial statement.

We know, **Debt Ratio = Total Liabilities/ Total Current Assets**

- First, we will type the following formula in cell
**D42**.

`=IF(D11=0,"",(D28+D33)/D11)`

**Formula Breakdown**

**IF(D11=0,””,(D28+D33)/D11) →****the IF function**returns a blank cell when**D11**is**0**, otherwise it returns the value of the division.**(D28+D33) →**are the**Total Liabilities**.**D11 →**is the**Total Current Assets**.**IF(D11=0,””,(D28+D33)/D11) →**becomes**Output: 0.616004606****Explanation:**as**D11**is not equal to**0**,**the IF function**returns the value of the division. And here,**616004606**is the debt ratio.

- At this point, press
**ENTER**.

As a result, you can see the **Debt Ratio** in cell **D42**.

### Step-2: Computing Current Ratio

In this step, we will calculate the** Current Ratio **of the financial statement.

We know, that **Current Ratio = Current Assets/ Current Liabilities**

- First of all, we will type the following formula in cell
**D43**.

`=IF(D28=0,"",D11/D28)`

Here, ** the IF function** returns a blank cell when **D28** is **0**, otherwise, it returns the value of the division.

- Afterward, press
**ENTER**.

As a result, you can see the **Current Ratio** in cell** D43**.

### Step-3: Finding Working Capitals

In this step, we will calculate the** Working Capitals **of the financial statement.

We know, that **Working Capitals = Current Assets-Current Liabilities**

- In the beginning, we will type the following formula in cell
**D44**.

`=D11-D28`

Here, this simply subtracts cell** D28 **from cell **D11**.

- At this point, press
**ENTER**.

As a result, you can see the **Working Capitals **in cell** D44**.

** **

### Step-4: Determining Assets to Equity Ratio

In this step, we will calculate the** Assets to Equity Ratio **of the financial statement.

We know, that the **Assets to Equity Ratio=Total Assets/Total Owner’s Equity**

- First, we will type the following formula in cell
**D45**.

`=IF(D37=0,"",D21/D37)`

Here, ** the IF function** returns a blank cell when **D37** is **0**, otherwise, it returns the value of the division.

** **

- After that, press
**ENTER**.

As a result, you can see the **Assets to Equity Ratio **in cell** D45**.

### Step-5: Calculating Debts to Equity Ratio

In this step, we will calculate the** Debts to Equity Ratio **of the financial statement.

We know, that the **Debts to Equity Ratio=Total Liabilities/Total Owner’s Equity**

- At first, we will type the following formula in cell
**D46**.

`=IF(D37=0,"",(D28+D33)/D37)`

Here, ** the IF function** returns a blank cell when **D37** is **0**, otherwise, it returns the value of the division.

** **

- Afterward, press
**ENTER**.

As a result, you can see the **Debts to Equity Ratio **in cell** D45**.

Finally, you can see an** automated financial statement** with **common financial ratios**.

** **

## Practice Section

You can download the above** Excel **file to practice the explained steps.

## Conclusion

Here, we tried to show you some easy steps to **automate financial statements in Excel**. Thank you for reading this article, we hope this was helpful. If you have any queries or suggestions, please let us know in the comment section below. Please visit our website **Exceldemy** to explore more.