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.

**Table of Contents**Expand

## What Is a 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 creating 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.

#### 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:** Balance Sheet Format for Construction Company in Excel

#### 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.

#### 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)`

**Read More:** Create a Balance Sheet Format for Trading Company in Excel

#### 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 the **Owner’s Equity**. A sample table is shown in the following picture. See the steps below to find the **Total Owner’s Equity**:

- First, calculate the
**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:** Balance Sheet Format of a Company in Excel

#### 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)`

### 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: **Income and Expenditure Account and Balance Sheet Format in Excel

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

In this approach, we will see the process of loading **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: **How to Create Daily Bank Balance Report Format in Excel

## Things to Keep in Mind

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

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

**Download Practice Workbook**

Download the practice workbook from here.

## 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.

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