When you’re dealing with your personal finance, you have to have clear knowledge about it. Not knowing general financial concepts can lead you to financial disasters. **Microsoft Excel **can easily calculate your business **income and expenses**. This will save you a lot of time and energy. Today, in this article, we’ll learn **five **quick and suitable steps to calculate the business income and expense worksheet in **Excel **effectively with appropriate illustrations.

## Download Practice Workbook

Download this practice workbook to exercise while you are reading this article.

## Introduction to Business Income and Expense

A standardized template that keeps track of and logs a company’s **income and expenses** is a spreadsheet for business income and expenses. You can get some extra benefits from the income and expense statement. The benefits of the business income and expense are:

- Taking better financial decisions.
- Saving time.
- Saving money.
- Identifying erratic or fraudulent expenditures.
- Income and Expense tracking may be seen at a glance.

## 5 Quick Steps to Calculate Business Income and Expense in Excel Worksheet

Let’s assume we have an **Excel **large worksheet that contains the information about the **Income and Expenses** of the **Armani Group**. From our dataset, we will calculate the **Income and Expenses** of the **Armani Group** using a mathematical **summation, subtraction **formula and **the SUM function**, and so on. We will do those **five **easy and quick steps, which are also time-saving. Here’s an overview of the dataset for today’s task.

Let’s follow the instructions below to calculate the **business income and expenses**!

### Step 1: Use Summation Formula to Calculate Business Income

In this portion, we will calculate the business income using the summation formula. From our dataset, we can easily do that. This is time-saving also. From our dataset, we have different categories of income. Now, we will sum up those incomes using the mathematical summation formula. Let’s follow the instructions below to calculate the **business income!**

- First of all, select cell
**F6**to apply the mathematical summation formula. Hence, write down the following formula in the**Formula Bar**. The formula is,

`=D6+E6`

- Where
**D6**is the income from the**category A**product, and**E6**is the income from the**category B**product.

- After that, press
**ENTER**on your keyboard. As a result, you will get income from several categories of products. The income is**$99,817.00**.

- Hence,
**AutoFill**the summation formula to the rest of the cells in column**F**. - While performing the above process, you will be able to calculate the income of the several products which has been given in the below screenshot.

**Read More:** **How to Keep Track of Small Business Expenses in Excel (2 Easy Ways)**

### Step 2: Apply Summation Formula to Calculate Business Expense

Now, we will calculate the business expenses using the summation formula. From our dataset, we can easily do that. This is time-saving also. From our dataset, we have different categories of **expenses.** Now, we will sum up those expenses using the mathematical summation formula. Let’s follow the instructions below to calculate the **business expenses!**

- First of all, select cell
**I6**to apply the mathematical summation formula. Hence, write down the following formula in the**Formula Bar**. The formula is,

`=G6+H6`

- Where
**G6**is the expenses from the**category A**product, and**H6**is the expenses from the**category B**product.

- After that, press
**ENTER**on your keyboard. As a result, you will get expenses from several categories of products. The income is**$89,096.00**.

- Hence,
**AutoFill**the summation function to the rest of the cells in column**I**. - While performing the above process, you will be able to
**calculate the expenses**of the several products which have been given in the below screenshot.

### Step 3: Use Subtraction Formula to Calculate Net Balance

In this step, we will calculate the business net balance using the Subtraction formula. From our dataset, we can easily do that. This is time-saving also. From our dataset, we have different categories of income and expenses. From those income and expenses, we will calculate the net balance using the Subtraction formula. Let’s follow the instructions below to calculate the **business net balance!**

- First of all, select cell
**I6**to apply the mathematical subtraction formula. Hence, write down the following formula in the**Formula Bar**. The formula is,

`=F6-I6`

- Where
**F6**is the**total income**, and**I6**is the**total expenses**.

- After that, press
**ENTER**on your keyboard. As a result, you will get a net balance. The net balance is**$10,721.00**.

- Hence,
**AutoFill**the summation function to the rest of the cells in column**J**. - While performing the above process, you will be able to calculate the net balance which has been given in the below screenshot.

### Step 4: Apply SUM Function to Calculate Business Income and Expense

Undoubtedly, applying **the SUM function** to calculate the total net **balance** is an easy and time-saving task. Let’s follow the instructions below to calculate the business **net balance!**

- First of all, select cell
**I6**to apply**the SUM function**. After that, write down the following formula in the**Formula Bar**. The formula is,

`=SUM(J6:J15)`

- Hence, press
**ENTER**on your keyboard. As a result, you will get the total net balance. The total net balance is**$116,307.00**.

### Step 5: Create Chart to Analyze Business Income and Expense

Last but not the least, we will create a chart to understand the income and expenses of the business. To understand the income and expenses of the business easily follow the instructions below to create a chart!

- First of all, select the data range. From our dataset, we will select
**F6**to**F15**and**I6**to**I15**for the convenience of our work. Hence, from your**Insert**tab, go to,

**Insert → Charts → 2-D Column**

- Further, we will be able to make a chart to understand the business income and expense worksheet which has been given in the below screenshot.

## Things to Remember

👉 **#N/A!** error arises when the formula or a function in the formula fails to find the referenced data.

👉 **#DIV/0!** error happens when a value is divided by **zero(0)** or the cell reference is blank.

## Conclusion

I hope all of the suitable steps mentioned above to **calculate business income and expense worksheet** will now provoke you to apply them in your **Excel **spreadsheets with more productivity. You are most welcome to feel free to comment if you have any questions or queries.

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