A company or organization often needs to **create a** **projected balance sheet**. It provides an idea of the company’s financial **performance** and also helps to **forecast** future conditions. In this tutorial, we will learn how to create a **projected balance sheet format** for **3** years in Excel. So, without further delay, let’s get started.

## Download Practice Workbook

Download the practice workbook from here.

## What Is Projected Balance Sheet?

A **projected balance sheet** contains all the **financial** information (such as **assets**, **liabilities** and **owner’s equity**) of an organization. It is also called the **pro forma balance sheet**. A **projected balance sheet** always satisfies the following equation:

`Total Assets = Total Liabilities + Total Equity`

In the equation,

**Total Assets:** It refers to the summation of the **resources** that a company or organization owns. For example, **cash**, **inventories**, **prepaid expenses**, **accounts receivable**, **licenses** etc.

**Total Liabilities:** It is the addition of all kinds of **debt** that any organization has. Such as **accounts payable**, **unearned revenue**, **mortgage payable** etc.

**Total Equity:** Equity is the **net worth** of an owner’s investment in a company after paying all **liabilities**.

## 2 Handy Approaches to Create Projected Balance Sheet Format for 3 Years in Excel

This article will guide you with **two** handy approaches to create a **projected balance sheet format** for **three** years in Excel. To demonstrate the methods, we will provide **screenshots** with explanations so that you can understand the process easily. The two methods are discussed below.

### 1. Create Excel Projected Balance Sheet Format for 3 Years Manually

In this method, we will make an Excel **projected balance sheet format** for **3** years **manually**. Here, **Year 1** is **2019**, **Year 2** is **2020** and lastly, **Year 3** denotes **2021**. However, we will explain this approach in **seven** steps. After following the steps, we will finally get a **projected balance sheet** like the following picture. Let’s see the steps below.

#### Step 1: Creating Dataset of Current Assets

In the first step, we will create a table for the **Current Assets** that will be similar to the following image. To create a dataset format of **current assets** for **3** years in a **projected balance sheet, **follow the steps below:

- In the beginning, open a
**worksheet**in**Excel**. - Then, select the
**entire worksheet**with a**left-click**on the**triangle**located at the**top-left**corner of the worksheet. - See the location of the
**triangle**in the following picture. - Next, go to the
**Home**tab.

- After that, click on the
**Number Format****drop down**in the**Number**group (see screenshot).

- Later, select
**Accounting**from the**dropdown**menu. - Now, you will find a
**dollar**sign (**$**) after inserting any**value**in the worksheet. - It is needed as we need to deal with the
**financial**condition of a company.

- Afterward, type
**Assets**,**Year 1**,**Year 2**&**Year 3**in the range**B4:E4**of the worksheet.

- Subsequently, select range
**B4:E4**> go to the**Home**tab > change the**Font Size**(**12**) > click on**B**(**Bold**). - See the screenshot below for a better understanding of the steps.

- Therefore, change the
**Fill Color**(**Dark Blue**).

- Besides, select the
**font color**(**White**) by clicking on the**Font Color**dropdown.

- Similarly, create a
**heading**(**B5:E5**) for the**Current Assets**table like the image below.

- Accordingly, type the names of the
**Current Assets**and ‘**Total Current Assets**’ in the**B6:B10**range. - Thereupon, enter the
**asset**values for the**3**years in the**C6:E9**range.

- At this time, select the
**B4:E10**range > go to the**Home**tab > find the**Font**group > click on the**Border**dropdown.

- Momentarily, we will use
**the SUM function**in Excel, to sum up the**Current Assets**for each year. - Forthwith, select
**All Borders**from the**dropdown**menu.

- In turn, the
**table**(**B4:E10**) will look like the following image.

- In order to calculate the
**Total Current Assets**of**Year 1**, type the formula below in cell**C10**:

`=SUM(C6:C9)`

- Press
**Enter**. - Consequently, you will get the
**Total Current Assets**for**Year 1**.

- In the same way,
**add**the**Currents Assets**of Year**2**by inserting the following formula in cell**D10**:

`=SUM(D6:D9)`

- Press the
**Enter**key to get the result in cell**D10**(see screenshot).

- Ultimately, find the
**Total Current Assets**for**Year 3**by entering the formula in cell**E10**:

`=SUM(E6:E9)`

- Lastly, press the
**Enter**button and you will get the result. - See the final result in the image below.

**Read More:** **Create Projected Balance Sheet Format for Bank Loan in Excel**

#### Step 2: Estimating Total Fixed Assets

In this step, we will estimate **Total Fixed Assets** in Excel for the **projected balance sheet** format of **3** years. Follow the steps below to do so:

- Firstly, create a dataset (
**B12:E16**) of**Fixed Assets**for the**3**years by following the process shown in the previous step. - See the dataset in the picture below.

- Secondly, to sum up the values of
**Fixed Assets**in**Year 1**, enter the formula below in cell**C16**:

`=SUM(C13:C15)`

- Thirdly, press the
**Enter**button on the keyboard. - Consequently, you will get the output in cell
**C16**(see screenshot).

- Next, to add the
**Fixed Assets**in**Year 2**, type the formula in cell**D16**:

`=SUM(D13:D15)`

- After that, press
**Enter**. - Thus, you will see the desired output in cell
**D16**.

- Finally, to find the
**Total Fixed Assets**in**Year 3**, insert the formula below in cell**E16**:

`=SUM(E13:E15)`

- Thereupon, press the
**Enter**key. - In this way, you will get the result in cell
**E16**.

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

#### Step 3: Finding Total Assets in Excel

This step will guide you to determine the **Total Assets** of the Excel **projected balance sheet** format for **3** years. We will do this by simply **adding** the **Total Current** & **Fixed Assets**. See the following steps:

- To begin, create a row (
**B18:E18**) for keeping the**Total Assets**values for the**3**years. - See the screenshot below.

- Now, select cell
**C18**. - After that, calculate the
**Total Assets**for**Year 1**by typing the following formula:

`=SUM(C10,C16)`

- Therefore, press the
**Enter**button to get the result. - See the result in cell
**C18**of the picture below.

- At this time, activate cell
**D18**. - Next, to calculate the
**Total Assets**in**Year 2**, apply the formula in cell**D18**:

`=SUM(D10,D16)`

- Eventually, press
**Enter**. - Hence, you will see the output in cell
**D18**.

- Ultimately, determine the
**Total Assets**in**Year 3**by typing the following formula in cell**E18**:

`=SUM(E10,E16)`

- After pressing the
**Enter**key, you will get the result in cell**E18**. - Thus, you can calculate the
**Total Assets**for the**three**years.

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

#### Step 4: Making Excel Dataset of Current Liabilities

Here, we will make a heading for the **Liabilities and Equity** and then create a dataset for the **Current Liabilities**. Follow the steps below:

- First of all, insert a heading (
**G4:J4**) of**Liabilities and Equity**of**Year 1**,**Year 2**and**Year 3**by following the process in**Step 1**. - The heading will be similar to the following picture.

- Then, create a table for the
**Current Liabilities**for the**three**years (discussed in**Step 1**).

- At this time, go to cell
**H10**in the worksheet. - Therefore, to find the
**Total Current Liabilities**of**Year 1**, use the formula:

`=SUM(H6:H9)`

- Next, press the
**Enter**button and see the result in cell**H10**.

- Similarly, calculate
**Total Current Liabilities**in**Year 2**and**Year 3**(see the screenshot below). - In order to find the
**Total Current Liabilities**in**Year 2**, type the formula below in cell**I10**:

`=SUM(I6:I9)`

- Again, for
**Year 3**, insert the following formula in cell**J10**:

`=SUM(J6:J9)`

#### Step 5: Determining Total Long-Term Liabilities

In this step, we will create a dataset for the **Long-Term or Fixed Liabilities**. To do so, first of all, create a dataset (**G12:J16**) for the **Long-Term Liabilities**. The dataset will look like the following image. The steps are below:

- In the first place, activate cell
**H16**. - Now, to add the
**Fixed**or**Long-Term Liabilities**for**2019**, enter the formula:

`=SUM(H13:H15)`

- Then, press
**Enter**. - Hence, you will get the output (
**$ 148,635.00**).

- In the same way, estimate
**Total Fixed Liabilities**in**2020**and**2021**respectively. - For the year
**2020**, use the formula below in cell**I16**:

`=SUM(I13:I15)`

- Similarly, for
**2021**, type the following formula in cell**J16**:

`=SUM(J13:J15)`

#### Step 6: Calculating Total Owner’s Equity

This step will show you the process to calculate **Total Owner’s Equity**. For this, first you need to prepare a table (**G18:J21**) by entering the names and values of **Owner’s Equity**. A sample table for is shown in the following picture. See the steps below to find the **Total Owner’s Equity**:

- First, calculate
**Total Owner’s Equity**for**Year 1**by applying the formula below in cell**H21**:

`=SUM(H19:H20)`

- After that, press
**Enter**. - Consequently, you will get the result (
**$133,676.00**) in cell**H21.** - See the screenshot below.

- In the same way, determine
**Total Owner’s Equity**in**Year 2**and**Year 3**. - For
**Year 2**, enter the formula below in cell**I21**:

`=SUM(I19:I20)`

- Again, For
**Year 3**, insert the following formula in cell**J21**:

`=SUM(J19:J20)`

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

#### Step 7: Adding Total Current & Fixed Liabilities with Total Equity

In the last step, we need to add **Total Current** & **Fixed Liabilities** with **Total Equity**. However, we will perform this calculation in the **H23:J23** range of the dataset below. Follow the steps below to do so:

- First of all, calculate
**Total Liabilities & Equity**in**2019**by typing the following formula in cell**H23**:

`=SUM(H10,H16,H21)`

- Next, estimate
**Total Liabilities & Equity**in**2020**by inserting the formula below in cell**I23**:

`=SUM(I10,I16,I21)`

- Finally, add the
**Total Liabilities**and**Total Owner’s Equity**by applying the following formula in cell**J23**:

`=SUM(J10,J16,J21)`

**Read More:**** How to Add Balance Sheet Graph in Excel (With Easy Steps)**

### Final Output

After applying the process in the above steps, we will finally get our desired **projected balance sheet** format in Excel for **3** years. We can see the final look of the balance sheet in the following picture. In this balance sheet, the **Total Assets** (**C18:E18**) and **Total Liabilities & Equity** (**H23:J23**) are equal for the **3** years.

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

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### 2. Utilize Microsoft Excel Templates to Make Projected Balance Sheet Format for 3 Years

In this approach, we will see the process to load **Microsoft Excel templates** for making a **projected balance sheet** format for **3** years. Microsoft Excel contains some **built-in balance sheet templates** that we can easily modify as per our requirements. See the steps below to create the template:

- In order to open the template, first of all, go to the
**File**tab.

- Afterward, select the
**New**option. - Eventually, type ‘
**Balance Sheet**’ in the**search box**. - Therefore, click on
**the search icon**(see screenshot).

- In turn, some
**Balance Sheet templates**will appear. - Now, select the
**Balance Sheet**option that you need. - In our case, we selected the
**Balance Sheet (Simple)**as it looks close to the one we require.

- Next, click on the
**Create**button.

- Hence, a new
**Excel workbook**will open containing**3**worksheets. - Thereupon, select
**Balance Sheet**from the**sheet tab**section.

- As a result, the
**Balance Sheet**will appear (see screenshot). - At this time, you can modify this
**Balance Sheet**as you want. - In our case, we need a balance sheet for
**three**years. - But, we can see that this balance sheet is for
**two**years. - So, we can
**add**another**column**here and then use it.

**Read More:** **Rental Property Balance Sheet in Excel (Free Template)**

## Things to Keep in Mind

At the time of preparing a **projected balance shee**t in Excel, you should always remember some important things. They are below:

- In the balance sheet, the
**Total Assets**and**Total Liabilities & Equity**have to be**equal**in all years. - Before any
**depreciation**value, always use a**minus**(**–**) symbol.

## Conclusion

I hope the above tutorial will be helpful for you to prepare a projected balance sheet format for 3 years in Excel. Download the practice workbook and give it a try. Let us know your feedback in the comment section. Follow our website **ExcelDemy** to get more articles like this.

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