How to Automate Financial Statements in Excel (with Easy Steps)

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.


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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.

How to Automate Financial Statements in Excel


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.

How to Automate Financial Statements in Excel

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.

How to Automate Financial Statements in Excel

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.

How to Automate Financial Statements in Excel

  • 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.

How to Automate Financial Statements in Excel

  • 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.

How to Automate Financial Statements in Excel

  • 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.

How to Automate Financial Statements in Excel


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.

How to Automate Financial Statements in Excel

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.

How to Automate Financial Statements in Excel

  • 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.

How to Automate Financial Statements in Excel

  • 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.

How to Automate Financial Statements in Excel

  • 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.

How to Automate Financial Statements in Excel

  • 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.

How to Automate Financial Statements in Excel

  •  Moreover, Press 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)

How to Automate Financial Statements in Excel

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.

How to Automate Financial Statements in Excel


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.

How to Automate Financial Statements in Excel


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.

How to Automate Financial Statements in Excel


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.


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Afia

Afia

Hello, I am Afia Aziz Kona. I graduated in Naval Architecture and Marine Engineering from Bangladesh University of Engineering and Technology (BUET). I have an immense interest in technical writing and content development, therefore, I am working as a content developer at Exceldemy. In my spare time, I travel, watch movies, and cook different dishes.

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