In this article, we will learn to create a real estate balance sheet in Excel. A real estate balance sheet is a financial report that reflects the net worth of a property. Investors take a look at the performance of the property before making any decisions. Today, we will show 2 easy ways. Using these methods, you can create a real estate balance sheet in Excel.
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What Is Real Estate Balance Sheet?
A real estate balance sheet contains assets, liabilities, and owner’s equity all in the same place. It gives the viewers a clear concept of a property. There are mainly 3 parts of a real estate balance sheet. They are:
- Assets: It is the asset that an owner owns. For example, real estate, cash in an account, appliances used in a rental, other prepaid expenses, shares, and many more.
- Liabilities: It is the debt a company has. It can be mortgages, bank loans, salaries & wages, unpaid bills, and so on.
- Equity: It represents the net worth of real estate. The subtraction of Liabilities from Assets gives us the Equity value.
In real estate, Equity is treated as the net worth of a property. The general formula of Equity is:
Net Worth or Equity = Real Estate Assets-Real Estate Liabilities
2 Easy Ways to Create Real Estate Balance Sheet in Excel
Today, we will show 2 ways to create a real estate balance sheet in Excel. In the first method, we will create a balance sheet from scratch in Excel. It takes a few moments to create a whole balance sheet. But it is very easy to understand.
Another way to make a real estate balance sheet is to use online templates in Excel. We will show both methods in the following sections.
1. Create Real Estate Balance Sheet from Scratch in Excel
We know that a real estate balance sheet contains Assets, Liabilities, and Equity. Also, Equity is determined by subtracting Liabilities from Assets. Using this information, we can create a real estate balance sheet from scratch. We need to make 3 sections for each part. Let’s follow the steps below to see how we can make a real estate balance sheet easily.
- First of all, keep a cell at the top that would contain the Company Name.
- After that, we need to create a section for the Assets.
- In Column B, we need to type the asset’s name, and in Columns C & D, we need to insert the value of the assets for different years.
- In the range B7:D13, we will insert the Current Assets.
- For example, cash, accounts receivable, prepaid expenses, and so on.
- Now, select Cell C13 and type the formula below:
- Press Enter.
Here, we have used the SUM function to find the Total Current Asset.
- After that, drag the Fill Handle to the right to Cell D13.
- Using the above steps, we will create a section for the Fixed Assets.
- Building, land, and equipment can be considered Fixed Assets.
- To calculate Total Fixed Assets, we need to use the formula below in Cell C19:
- Press Enter and drag the Fill Handle to Cell D19.
- After inserting Current and Fixed Assets, we will insert Other Assets in the balance sheet in the range B20:D23.
- To calculate the Total Other Assets in Cell 23, we will sum the values using the SUM function:
- In order to calculate the Total Asset, we need to add the Current Asset, Fixed Asset, and Other Assets.
- To do so, we have used the formula below in Cell C25:
- Now, press Enter and drag the Fill Handle to Cell D25 to get the result for the other year.
- After completing the Asset section, we need to create a section for the Liabilities.
- For that purpose, type the Current Liabilities like the picture in the range F7:H13.
- To calculate the total, use the SUM function in Cells G13 & H13.
- Similarly, in range F14:H19, enter the Long-Term Liabilities.
- Also, add them up in Cells G19 & H19.
- In the following step, type the formula below in Cell G21 to get the Total Liabilities:
- Again, hit Enter and drag the Fill Handle to Cell H22 to get the result for the other year.
- To find the Working Capital, subtract Total Current Liabilities from Total Current Assets.
- In Cell C27, we have applied the formula below:
- Finally, to complete the balance sheet, you need to find real estate Equity.
- For that purpose, select Cell G25 and type the formula below:
- Hit Enter.
In this case, Cell C25 is the Total Asset and Cell G21 is the Total Liabilities.
- Now, if you start inserting values in the worksheet, you will get the results automatically.
- For example, we will create a balance sheet for a company named XYZ for 2017 & 2018.
- You can see the Total Current Asset and Liabilities in the picture below.
- After inserting all the values, we can see the Working Capital and Real Estate Equity for the years 2017 & 2018.
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2. Load Real Estate Balance Sheet Template from Online
In the second method, we will download a pre-built real estate balance sheet template online. Microsoft Excel gives users the opportunity to search for a template online and download it for use. So, let’s pay attention to the steps below to see how we can load a real estate balance sheet in Excel.
- Firstly, click on the File tab.
- Secondly, select New and type “Balance Sheet” in the Search Bar.
- Thirdly, click on the Search icon.
- As a result, different templates will appear.
- Select the template that suits you.
- After that, a message box will appear.
- Select Create from there.
- Finally, you will see the Balance Sheet in a new workbook.
Read More: Balance Sheet Format of a Company in Excel (Download Free Template)
In this article, we have discussed 2 easy methods to create a Real Estate Balance Sheet in Excel. I hope this article will help you to perform your tasks efficiently. Furthermore, we have also added the practice book at the beginning of the article. To test your skills, you can download it to exercise. Moreover, you can use the template for your purpose. Also, you can visit the ExcelDemy website for more articles like this. Lastly, if you have any suggestions or queries, feel free to ask in the comment section below.
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