Excel is widely used to make financial statements of any company or business whether it is a big one or a small one. We can use different Excel functions and formulas to get Assets, Liabilities, Incomes, Expenditures, etc. from a dataset of financial statements. In this article, we will show you the procedure to make an automatic** balance sheet in Excel**.

**Table of Contents**hide

## Download Practice Workbook

You can download the practice workbook from here.

## Why Do We Need Automatic Balance Sheet in Excel?

The financial statements of any company or business can be huge. So it’s quite tough to find the Profit and Loss or asset and liability at a glance. But it can be easily found by using Excel. Later on, we can change the input data and get the result values instantaneously.

## Procedure to Make Automatic Balance Sheet in Excel

Making an automatic balance sheet is quite simple in Excel. We can make an automatic balance sheet following a few steps. The steps are discussed below.

### Step 1: Produce a Tabular Form Structure

First we need to create a table for the balance sheet. The table can be like the following which includes columns Category, Debit, Credit, Balance, and Cr/Dr. In the Category, we will define the type of our input which will in turn help to separate debit and credit.

We need to make Profit & Loss, Balance Sheet table also.

Beside that, we need to add an extra table for the Category Name and Category Type.

**Read More:** **Balance Sheet Format of a Company in Excel (Download Free Template)**

### Step 2: Provide Category and Checking Type in Balance Sheet

In the table, we have to provide Category first. Sales are income for the business, purchases and different bills are expenses. Cash in Hands, Bank Balance are assets for the business. Accounts payable and capital amount are liabilities. So we categorized them accordingly.

Then we need to write the following formula in the 1st cell of column **Cr/Dr**.

`=VLOOKUP(C5,$L$5:$M$8,2,FALSE)`

Here, **VLOOKUP **is an Excel function,

**C5 **is the lookup value,

**$L$5:$M$8 **is the table array,

**2 **is column index number and

FALSE is a range lookup for an exact match.

Then we need to press **ENTER **and use **Fill Handle **to copy the formula in the cells below.

We can see the **debit or credit** type for each category.

**Read More:** **How to Make Balance Sheet Format in Excel for Individual**

### Step 3: Provide Input into Fields

In this step, we will provide our input data in the table. Credit is money flowing out of the account so we inserted Income and Liability in the Credit column whereas Expense and Asset are inserted in the Debit column cause debit means the money flow in the account.

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### Step 4: Calculate and Verify Balance

Now we will calculate and verify our balance. The steps are given below.

Below the Debit column in cell **D17 **we want to have the sum of debits. For that, we need to write the following formula in the cell.

`=SUM(D5:D16)`

We need to press **ENTER **and use **Fill Handle **to copy the formula to the cell beside.

We can see the sum of all debits and credits in the bottom cells and they matched.

Now we will make the balance for each input. To do that we have to write the following formula to the 1st cell of column **Balance**.

`=IF(B5="Cr",E5-D5,D5-E5)`

Here, **IF **is an Excel function,

**B5=”Cr” **is the criteria,** **

**E5-D5 **is the result if the criteria matches,

**D5-E5 **is the result if the criteria don’t match.

Now we need to press **ENTER **and use **Fill Handle **to copy the formula in the cells below.

We can see the balance for each input. Credit is shown as a negative value and Debit is shown as a positive value.

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

### Step 5: Split Summary of Balance

This time we will show the steps to calculate the **Profit & Loss** and Asset & Liability.

We have to select the cell where we want to see the total income. In our case the cell is **J5**. Then we need to write the following formula there.

`=SUMIF($C$5:$C$16,"Income",E5:E16)-SUMIF($C$5:$C$16,"Income",D5:D16)`

Here, we have taken the subtraction value of 2 **SUMIF **functions.

**$C$5:$C$16 **is the criteria range,

**“Income” **is the criteria

**E5:E16 **is the sum range.

Now we have to press **ENTER**.

We can see the total income.

We will calculate the total expense now. To do that we need to select the cell to display the result. In our case the cell is **J11**. We have to write the following formula in the cell.

`=SUMIF($C$5:$C$16,"Expense",D5:D16)-SUMIF($C$5:$C$16,"Expense",E5:E16)`

Here, we used the subtraction value from 2 **SUMIF **functions.

**$C$5:$C$16 **is the criteria range,

**“Expense” **is the criteria

**D5:D16 **is the sum range.

We have to press **ENTER**.

We can see the total expense now.

Here we will calculate the net profit. To do that we need to select the cell and write the formula given below there.

`=J5-J6`

Here, we have used the subtraction value of 2 cells **J5 **and **J6**.

We need to press **ENTER**.

We can see the net profit or loss.

This time we will calculate total assets and total liabilities. To calculate the total assets we need to select the desired cell. In our case the cell is **J11**. We have to write the following formula there.

`=SUMIF(C5:$C$16,"Asset",D5:D16)-SUMIF(C5:$C$16,"Asset",E5:E16)`

The formula is similar to the formula used previously.

We have to press **ENTER **now.

We can see the total assets in the cell.

Now we will calculate the total liabilities. For that, we need to select the desired cell 1st and write the following formula in the cell.

`=SUMIF($C$5:$C$16,"Liability",E5:E16)-SUMIF($C$5:$C$16,"Liability",D5:D16)`

The formula is similar to the previously used formula.

We have to press **ENTER**.

We can see the total liabilities in the cell.

Now we will calculate the net profit/loss on the balance sheet. for that, we need to select the desired cell to show the result and write the following formula there.

`=J11-J12`

We used the subtraction value of cells **J11 **and **J12**.

Now we need to press **ENTER**.

We can see the net Profit/Loss here which is the same as the profit calculated from total** income and expenses**.

In this step, we will calculate the total liabilities. We have to select the respective cell first and write the following formula there.

`=J12+J13`

Now we need to press **ENTER**.

We will see total liabilities there.

**Read More:** **How to Create Real Estate Balance Sheet in Excel (2 Easy Ways)**

## Conclusion

Making an automatic balance sheet in Excel can reduce a lot of hard work and save valuable time. We need to be careful about the data entry because one wrong piece of information can cause a chain of errors in the balance sheet. In this article, we have shown the procedures to make an automatic balance sheet in Excel. If you have faced any problems regarding the procedures or if you have any suggestions, please let us know by comment. please visit our **ExcelDemy **site for similar articles regarding Excel.

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