A corporation incurs expenses when it transfers money or other valuable assets to a person or entity. This is an occurrence when a debt is created or an asset is depleting in the context of financial accounting. It’s a good practice to record the daily expense financial statement. This will help anyone facing a financial imbalance. With Microsoft Excel, it is quite easy to keep a record of users’ daily expenses. Excel has some amazing tools and built-in functions. This article will demonstrate the procedure to create a daily expense sheet format in Excel.
What Is Daily Expense?
An expense is a revenue that we have to expend in order to perform something or that something costs us. It is a business’s operational cost incurred to produce income. It makes sense economically, as the adage goes. When an asset is utilized to produce income, its value decreases. The daily expense is a cost that is incurred over the course of an asset’s life when it is expected to be utilized for an extended period of time. It is customary to allocate a cost to expense as we incur if it is for something that consumes right away, like a wage.
How to Create Daily Expense Sheet Format in Excel: With Easy Steps
Everyone reacts differently to personal debt. Some of us are unconcerned and have the monthly income or resources necessary to pay off the debt whenever it arises. Others want to avoid it at all costs since they know it might lead to a host of escalating financial problems in a precarious balance between income and spending. We can tell by looking at the financial statement that costs utilize to lower the owner’s equity. Let’s follow the steps to create a daily expense sheet format.
Step 1: Create Dataset
To begin with, first, we need to put the basic information for further calculation. So, we create our sample dataset. We will use the TODAY function for the date. The TODAY function categorizes under Excel Date and Time Functions. The Excel TODAY function returns the current date. It does not have any arguments. Whenever we open or update our worksheet, the date will continually update.
- To do so, firstly, create a worksheet named Dataset. And, make three columns which are Date, Income, and Expense.
- After that, select the cell where you want to put the date. Here, we merge the cells as we use only one date.
- Then, put the formula into that cell.
- Further, press Enter to see the result.
- Further, to complete the dataset, record all the income and expenses of the particular day.
Step 2: List All Categories and Subcategories of Expense
Now, we need to categorize and subcategory the expenses. Every time we observe, discuss, analyze, forecast, or categorize anything, categories are essential. Because they let us link objects to one another in terms of similarity and dissimilarity.
- In the first place, create a new sheet. In our case, we name the sheet Expense Categories.
- Afterward, list all the categories and subcategories of your expenses.
Step 3: Calculate Total Daily Expense
In this step, we will compute the total daily expenses. For this, first, we have to set the information and organize it properly.
- Firstly, we select the date column and use the TODAY function again.
- Secondly, select the Category column and go to the Data tab from the ribbon.
- Thirdly, from the Data Tools group, click on the Data Validation drop-down menu.
- Then, select the Data validation.
- As a result, this will appear the Data Validation dialog box.
- Subsequently, go to Settings from the menu.
- Now, from the Allow drop-down option, choose List.
- In the Source field select the range of categories listed. For this, go to the Categories sheet and select range B5:B16.
- Lastly, click on the OK button.
- Thus, if you click on the category cell, you will be able to see a tiny drop-down icon. From there, you can easily select any category. Instead of writing it down every time, you may choose your expense category from this page with only one click.
- Creating a drop-down list similarly to the expenses subcategory is the next step.
- Likewise, in the previous steps, choose the Sub Category column then, go to the Data tab from the ribbon.
- Thirdly, select the Data Validation drop-down box under the Data Tools category.
- Select Data validation after that.
- The Data Validation window will now show up.
- Now, from this window, select the Settings tab.
- Then, from the Allow choices, select the List option.
- Afterward, refer to the C5:C16 fields from the Expense Categories worksheet, in the Source text box.
- Lastly, press the OK button to finish the process.
- As a result, you can see in cells D6 through D11, that there is a drop-down list with all of your spending categories.
- Further, fill all the categories and subcategories and the total amount spent for each category.
- Now, for calculating the daily expense for each category, we are going to use the SUM function in Excel. In Excel, the SUM function sums the digits in a group of cells. This function mainly adds values.
- So, select the cell where you want to see the result of total expense.
- Insert the formula of SUM functions into that cell.
- Afterward, hit Enter on the keyboard.
Read More: Daily Income and Expense Sheet in Excel
Step 4: Insert Chart for Better Visualization
Finally, to visualize the expense more often, we can insert a Chart. Charts are a popular tool for graphically illuminating data connections. We use charts to convey data that are too many or complex to be fully expressed in the text while taking up less space.
- Firstly, select the datasets category and subcategory with the amount and go to the Insert tab from the ribbon.
- Secondly, in the Charts category, click on the Insert Column or Bar Chart drop-down menu.
- Thirdly, select the Clustered Column on the 2-D Column list.
- This will display the graphical representation of total Expenses.
- Now, to visualize the chart more often, we will change the color of each category.
- For this, double click on the Series.
- And, Format Data Series will open on the right side of the worksheet.
- From there, click on Fill & Line and checkmark the Vary colors by point.
Final Output of Daily Expense Sheet Format
This is the final template of the daily expense format with the chart for visualizing the data.
Things to Keep in Mind
While creating a daily expense sheet format, there are a few factors you need to keep in mind.
- Be cautious while entering your reasoning into the calculation when calculating the Expense.
- Maintaining accurate number formatting in your cells in accordance with their meanings. For instance, if you put the date manually, use the Date formatting, in the Date column. Errors might happen if this is not the case.
Download Practice Workbook
You can download the workbook and practice with them.
The above procedures will assist you to create a daily expense sheet format in Excel. Hope this will help you! Please let us know in the comment section if you have any questions, suggestions, or feedback.