How to Make Projected Balance Sheet in Excel (with Quick Steps)

A Projected Balance Sheet can provide an inside look at the company or the organization. They can ease the process of evaluating a company and assist to make future predictions. If you are curious to know how you can make a projected balance sheet in Excel, this article may come in handy for you. Here we discuss how you can make a Projected Balance Sheet in Excel in detail and in a self-explanatory way.


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Overview of Projected Balance Sheet

Definition

Projected Balance Sheet also known as Proforma balance sheets, is a record which keeps the change of liability, asset, equity of a organization/company over a certain period of time.

Components of Projected Balance Sheet

Normally you would need a Projected Balance Sheet to have an idea of how your organization will operate in the future. It is a tabulation for future performance or projections. It has some integral components, whose inclusion is a must in order to make a Projected Balance Sheet.

  • Assets: Simply put, Assets are those properties that the company owns. Those Assets can be Fixed Assets like land, or some Assets could be current property, like software. They can also categorize as tangible and nontangible.
  • Liabilities: Liabilities can be explained as the things that the company owes. They could be mortgages, external debt, accrued taxes, etc
  • Equity: Equity represents the money that would return to the shareholders if all of the Assets (current & Fixed) are liquidated and all debts are paid.

Step-by-Step Procedure to Make Projected Balance Sheet in Excel

We will prepare and make a projected balance sheet in Excel using the basic financial data of a company. The whole process below is discussed in detailed steps. those steps involve the collection of sensitive data. These data must be carefully collected and input into the sheets in order to prevent any kind of unwanted results


Step 1: Prepare Current Assets Dataset

Before we delve into making the Projected Balance Sheet, we need to gather the necessary information first. we need to collect all kinds of Current Asset information with their exact amount. Only after then, we can prepare the Current Asset dataset, using the SUM function.

  • We have Cash, Inventory, Prepaid, Land, and Account Receivable values in the range of cells B6:B10.
  • And the value of them in the October 20, 2021, fiscal year, and June 5, 2022, fiscal year is presented. We can observe a steady increase in all of them over time.

Prepare Current Asset Dataset to Make Projected Balance Sheet in Excel

  • Now select the cell C11 and enter the following formula:

=SUM(C6:C10)

  • Entering this formula will calculate the total of the current Assets mentioned in the rage of cell C6:C10.in the time period October 20, 2021.

Prepare Current Asset Dataset to Make Projected Balance Sheet in Excel

  • Now select the cell D11 and enter the following formula:

=SUM(D6:D10)

  • Doing this will calculate the SUM of the total of the Current Assets mentioned in the range of cells D6:D10. On the date June 5, 2022 time period.

Prepare Current Asset Dataset to Make Projected Balance Sheet in Excel

Read More: How to Make Balance Sheet in Excel (2 Useful Examples)


Step 2: Estimate Total Non-Current Assets

Right after we estimated the Current Assets, we now calculate the non-current or the Fixed Assets. After that, we will be able to determine the total asset amount, using the SUM function.

  • We put the Non-Current costs of the organization in a list format in the range of cells B14:B17.
  • And we then put the values of those non-current Assets values for October 20, 2021, in the range of cells C14:C17. And the values of non-current Assets for June 5, 2022, in the range of cells D14:D17.

Estimate Total Non-Current Asset to Make Projected Balance Sheet in Excel

  • After then, select the cell C18 and enter the following formula:

=SUM(C14:C17)

  • Doing this will calculate the sum of Non-Current Assets mentioned in the range of cell C14:C17 for the time period of October 20, 2021.

Estimate Total Non-Current Asset to Make Projected Balance Sheet in Excel

  • Next, select the cell D18, and enter the following formula:

=SUM(D14:D17)

  • Doing this will calculate the sum of Non-Current Assets mentioned in the range of cell D14:D17 for the time period of June 5, 2022.

Estimate Total Non-Current Asset to Make Projected Balance Sheet in Excel

  • After this, select the cell C20 and enter the following formula:

=SUM(C11,C18)

Estimate Total Non-Current Asset to Make Projected Balance Sheet in Excel

And then select the cell D20 and enter the following formula:

=SUM(D11,D18)

  • This will calculate the sum of two types of Assets, Current and Non-Current Assets.
  • For two different periods of time. We can get an idea of how the Assets value increased over time.

Estimate Total Non-Current Asset to Make Projected Balance Sheet in Excel

Read More: Balance Sheet Format in Excel with Formulas (Create with Easy Steps)


Step 3: Evaluate Liabilities

Like the Assets, Liabilities are divided into Fixed and Current  Liabilities.  The things that the company owes permanently are Fix Liabilities. And monthly payments like Salary, insurance installments, and taxes are known as the Current Liabilities. the total liabilities will be evaluated using the SUM function.

  • We put the Current Liabilities of the organization in a list format in the range of cells F6:F10.
  • And we then put the values of those Current Liabilities values for October 20, 2021, in the range of cells G6:G10. And the values of Current Liabilities for June 5, 2022, in the range of cells H6:H10.

  • Next, select the cell G11 and enter the following formula:

=SUM(G6:G10)

  • Doing this will calculate the sum of Current Liabilities mentioned in the range of cell G6:G10 for the time period of October 20, 2021.

Evaluate Liabilities to Make Projected Balance Sheet in Excel

  • Next, select the cell H11 and enter the following formula:

=SUM(H6:H10)

  • Doing this will calculate the sum of Current Liabilities mentioned in the range of cell H6:H10 for the time period of June 5, 2022.

Evaluate Liabilities to Make Projected Balance Sheet in Excel

  • We put the Fixed Liabilities of the organization in a list format in the range of cells F14:F17.
  • And we then put the values of those Fixed Liabilities values for October 20, 2021, in the range of cells G14:G17. And the values of Fixed Liabilities for June 5, 2022, in the range of cells H14:H17.

  • Next,select the cell G18 and enter the following formula:

=SUM(G14:G17)

  • This will calculate the sum of Fixed Liabilities mentioned in the range of cell G14:G17 for the time period of October 5th, 2021.

  • Then, select the cell H18 and enter the following formula:

=SUM(H14:H17)

  • This will calculate the sum of Fixed Liabilities mentioned in the range of cell H14:H17 for the time period of June 5, 2021.

Read More: How to Tally a Balance Sheet in Excel


Step 4: Calculate Total Equity

After the calculation of the Assets and the liability, it is high time we calculate the Total Equity of the organizations, using the SUM function.

  • We put the Equity of the organization in a list format in the range of cells F21:F23.
  • And we then put the values of those Equity values for October 20, 2021, in the range of cells G21:G23. And the values of Current Liabilities for June 5, 2022, in the range of cells H21:H23.

  • Next,select the cell G24 and enter the following formula:

=SUM(G21:G23)

  • Doing this will calculate the sum of Equity values mentioned in the range of cell G21:G23 for the time period of October 20, 2021.

Calculate Total Equity to Make Projected Balance Sheet in Excel

  •  Next. select the cell H24 and enter the following formula:

=SUM(H21:H23)

  • Doing this will calculate the sum of Equity values mentioned in the range of cell H21:H23 for the time period of June 5, 2022.

Read More: Net Worth Formula Balance Sheet in Excel (2 Suitable Examples)


Step 5: Calculate Total Liabilities and Equity

Both the Liabilities and the Equity count as the outgoing flow of the money of an organization. A summation of them can provide a much clear insight into the stream of money. The SUM function will be used here for this purpose.

  • Select cell G27 and enter the following formula:

=SUM(G11,G18,G24)

Next, Select cell H27 and enter the following formula:

=SUM(H11,H18,H24)

  • Doing this will calculate the summation of both types of Liabilities (Current & Fixed) and Equity in cell H27.

  • And this is how we make the Projected Balance Sheet in Excel.

Make Projected Balance Sheet in Excel

Read More: Balance Sheet Format in Excel for Proprietorship Business


Conclusion

To sum it up, the question “how to make Projected Balance Sheet in Excel” is answered here in 5 separate steps with elaborate explanations.

For this problem, a workbook is available for download where you can practice these steps.

Feel free to ask any questions or feedback through the comment section. Any suggestion for the betterment of the Exceldemy community will be highly appreciable.


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Rubayed Razib Suprov
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