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.

## How to Automate Financial Statements in Excel: with Easy Steps

The following picture shows a **Trial Financial Statement** of** ABC company**.Â 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 seeÂ **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,Â 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,Â we will calculate the **Total Assets. **

- First of all,Â 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,Â 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 seeÂ **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,Â 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 seeÂ **Long Term Liabilities** in cells **C30:C32**.

- Then, in cells
**D30:D32**, we insert the values of**Long Term 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 TermÂ Liabilities **in cell **D33.**

### Step-7: Finding Total Ownerâ€™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,Â from the
**Trial Financial Statement**, we will insert**the Ownerâ€™s Investment**and**Authorized Share**in the**Ownerâ€™s Equity**group.

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

Then, you can see **Ownerâ€™s Equity** in cells **C35:C36**.

- Then, in cells
**D35:D36**, we insert the values of**Ownerâ€™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 Ownerâ€™s Equity** in cell **D37**.

### Step-8: Determining Total Liabilities and Ownerâ€™s Equity to Automate Financial Statements in Excel

In this step, to **automate financial statements** in Excel,Â we will calculate the **Total Liabilities and Ownerâ€™s Equity**.

- First of all,Â 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**.

**Â**Moreover, Press**ENTER**.

As a result, you can see the **Total Liabilities and Ownerâ€™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

## 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. Letâ€™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) â†’****the IF function**returns a blank cell when**D11**is**0**, otherwise it returns the value of the division.**(D28+D33) â†’**are the**Total Liabilities**.**D11 â†’**is the**Total Current Assets**.**IF(D11=0,””,(D28+D33)/D11) â†’**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**.

**Read More:** Consolidation of Financial Statements in Excel

### 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, **Â 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 Ownerâ€™s Equity**

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

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

Here, **Â 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 Ownerâ€™s Equity**

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

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

Here, **Â 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.

**Download Practice Workbook**

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

## 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.

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