Bookkeeping is the basic need for every small business. Well, in this case, the good news is that you would not need the expert advice or the training of any accountant to remain on top of your financials.

All you will ever need is using formulas in Excel sheets and the primary calculations to evaluate the most important values and keep track of the most crucial values and also to keep track of the profit margin of your company.

In this article, we shall be talking about the steps on how you can easily set up a profit calculator spreadsheet so you may get started on tracking your business the correct way.

Who Can Use Excel To Keep Track Of Finances?

Anyone can use the formulas in Excel as an advanced tool with defined equations or use cases. Therefore, an Excel spreadsheet may be used both by businesses and individuals for their respective business purposes.

You may as well be an online freelancer and work remotely, selling items on Etsy and Amazon to keep track of sales from your website.

Excel lets you drop your numbers in, and if you set it properly, it may automatically calculate values that you would need and will save you a lot of time while you try to maintain a book of your business.

How To Set A Profit Calculator Spreadsheet?

If you want to calculate the percentage of your profits in Excel, you will first need to set up a simple table that will list all your incoming revenues and the profit earnings along with all your expenses.

The process goes on as follows:

• Open Excel first.

• Click with your right mouse and select a couple of rows and four columns.

• Give names to your tables by filling out the following values in the respective columns. These will include Income, Profit, Expenses, and Percentage.

• Fill out the columns designated for Income and Expenses.

Select the currency that you are working on. You may be able to find the currency settings if you click on the Home tab. Within the Number section, you can find the dollar sign to click on. Once you click on it, you may see a drop-down menu.

What Is The Formula For Percentage In Excel?

If you want to get the net income formula or the formula for percentage in Excel, you might want to follow the given steps:

• Use the formula: a2-b2 in the Profit cell C2.

• Drag the cell corner so that you include the rest of your whole table.

• To calculate the percentage of profit, you need to enter the given formula in the empty cell under the Percentage: c2/a2.

• Once you get the percentage of your profit, drag the cell corner once again so that it includes the rest of the table.

• You will see that you do not have the percentage of profit listed currently. To display the values as percentages, you need to go to the General dropdown menu and, on the top, click on Percentage.

Likewise, you will see the profit percentages listed for every individual cell.

You may as well use the =SUM operation as the formula for total profit to calculate the total sum of money that you may have earned.

Why Use The Formulas In Excel For Calculating Profit?

Businesses or individuals use Excel to calculate their profit margins to make the entire process far easier. Evaluating these metrics is usually an easy task of bookkeeping that helps individuals keep track of the money flow within and out of the business.

Excel is quite popular for providing multiple benefits while doing these calculations. Some of these benefits include:

Automated Calculation   

Excel lets users put formulas inside the cells to calculate the cell value or the range of the cells. There are multiple pre-existing formulas in Excel that users can use to their own benefit.

Time-Saving

Because of the automated calculations, users get to save a lot of time as they do not have to do the entire calculations manually. For instance, operating formulas in Excel may actually be really helpful if you want to determine the profit or the profit margin of a huge set of data.

Excel will take less than half the time that it would take to do the same manually.

Helps In Reducing Errors

Doing the calculations in Excel will help you reduce the errors. Human errors are very common when it comes to manual calculations.

The numbers may sometimes block your mind. That is normal. But, doing the calculations in

Excel reduces the risks of making any huge mistake while calculating. However, you must not forget that the accuracy of the calculations will only be as accurate as the data that you put in. Hence, you must double-check before doing the final calculations to make sure that you have put in the correct number in all of the columns.

The Bottom Line 

Doing formulas in Excel is a brilliant and efficient way to get your calculations done in the shortest amount of time without any added trouble. It is easy and accurate.

While the calculations themselves are free of any human errors, you have to make sure that the numerical data that you are putting in is absolutely correct and has no flaws in it.