How to Create a Balance Sheet for Small Business in Excel

The income statement, balance sheet, owner’s equity statement, and cash flow statement are the four main types of financial statements. The balance sheet is the most important part of those statements. In this article, we will show you quick steps to create a balance sheet for a small business in Excel.


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Balance Sheet

It summarizes the financial position of the company after a certain period and is also known as a Statement of Financial Position/condition. In general, a balance sheet consists of three parts. And, these are assets, liabilities, and owners’ equity. A balance sheet provides a glimpse of the company’s finances. The balance sheet consists of the company’s liabilities, assets, and owner’s equity. Balance sheets are organized according to the equation:

Assets = Liabilities + Owner’s Equity

  • Assets: These are the main resources owned by the company. Assets can be categorized into many types. Examples- current and fixed assets, tangible and intangible assets, etc.
  • Liabilities: They are things that the company owes to a person or another company, like cash, loans, etc.
  • Owner’s Equity: It represents the value for a company’s shareholders after all the company’s assets have been sold off and all company liabilities have been paid off.

Step-by-Step Procedures to Create Balance Sheet for Small Business in Excel

There will be two quick steps to complete this article. Firstly, we will set up the balance sheet format in Excel. Finally, we will input the relevant values in the balance sheet for a small business with the formula.


Step 1: Setting Up Balance Sheet Format

In this first step, we will input the fields for the balance sheet. We are preparing a balance sheet for a small business named “ABC Company”. The balance sheet is for the date of September 30, 2022.

  • Firstly, type all the fields for the assets of the company.
  • Secondly, we will list the values for the past year too.

Setting Up Balance Sheet Format to Create Balance Sheet for Small Business in Excel

  • Thirdly, type all the fields for the liabilities and owner’s equity.
  • Thus, this concludes the first step of this article.

Read More: Balance Sheet Format in Excel for Proprietorship Business


Step 2: Entering the Values

We will input all the values inside the balance sheet in this last step. We will use the SUM function to calculate the total values. Additionally, we will use the Fill Handle to AutoFill the formulas into the relevant cells.

  • To begin with, type the following formula to find the total value of the current assets.

=SUM(C9:C13)

Entering the Values to Create Balance Sheet for Small Business in Excel

  • Next, select cell C19 and press ALT+= to return the value of the total fixed assets.

  • Then, type another formula to calculate the total assets.

=C14+C19

Finding Total Assets to Create Balance Sheet for Small Business in Excel

  • After that, type this formula to find the total current liabilities.

=SUM(C23:C26)

  • Next, type this formula to find the value of total long-term liabilities.

=SUM(C29:C30)

  • Type this formula to return the value of total owner’s equity.

=SUM(C33:C34)

Calculating Owner's Equity to Create Balance Sheet for Small Business in Excel

  • Then, type another formula in cell C36 to calculate the value of total liabilities and owner’s equity.

=C27+C31+C35

  • Finally, press ENTER.

  • Lastly, we can see that the balance sheet balances properly.

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


Balance Sheet Format in Excel

In this section, we will describe the steps to create a basic balance sheet format in Excel with a formula. We will again use the SUM function to calculate the total values.

Steps:

  • Firstly, type the following details to create the balance sheet format.
  • Secondly, insert the relevant values and type this formula to find the value of total current assets.

=SUM(C7:C9)

Balance Sheet Format in Excel

  • Thirdly, type another formula to find the values of the total assets.

=SUM(C10,C13)

  • Fourthly, type this formula to return the total current liabilities.

=SUM(C16:C18)

  • Finally, type this formula in cell C25 to calculate the values of total liabilities and shareholder’s equity. Moreover, we can see the balance sheet balances.

=SUM(C21,C24)

Read More: How to Create Vertical Balance Sheet Format in Excel


Conclusion

We have shown you two quick steps on how to create a balance sheet for a small business in Excel. If you face any problems regarding these methods or have any feedback for me, feel free to comment below. However, remember that our website implements comment moderation. Therefore, your comment may not be instantly visible. So, have a little bit of patience, and we will solve your query as soon as possible. Moreover, you can visit our site, ExcelDemy for more Excel-related articles. Thanks for reading, keep excelling!


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Rafiul Haq

Rafiul Haq

Hello! This is Rafiul. I have an engineering degree and an MBA (finance) degree. I am passionate about all things related to data, and MS Excel is my favorite application. I want to make people's lives easier by writing easy-to-follow and in-depth Excel and finance related guides here at ExcelDemy.

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