The Tax Tracker template provides three major tools that alleviate the typical pain points with the 1040 Schedules A, C, & D. For example, for the Gross Sales calculation on the Income Statement tab, the SUMIF formula searches for “Gross Sales” on the Inc Stmt Detail tab, Column A, and sums up all transaction values that match. The Income Statement tab utilizes a handy SUMIF formula for each line item on the Inc Stmt Detail tab. Note: make sure only transaction amounts are in the Transaction Amount column or the calculation on the Income statement will be off.Ĭlassify each line to an income/expense category using the drop down menu in Column A, for example “Gross Sales”, or “Other Business Income”. Indicate which column represents the transaction amount using the drop down menu in row 9. In this day and age, most business bank and credit card accounts provide an Excel version of your transactions online and not just the paper or PDF statement.Īrmed with your transaction records and the tax tracker template provided, you can take the following steps to fill out your Income statement:Ĭopy and paste your Excel versions of bank or credit card statements, including headings, into the Inc Stmt Detail tab of the template. To speed this process up a bit, you can start by downloading an Excel copy of your bank or credit card transactions. You can get the amazing tracking template I use for my business below. A Tax Tracker takes your raw transactions and generates a Profit and Loss statement (also referred to as an Income statement) to be updated regularly like a budget tracker. Don’t get me wrong, detail is great in understanding where your money is going, but when it comes to actually doing your taxes it’s just an unnecessary added step. Unfortunately, both of these are very labor intensive.Īnother issue that plagues traditional budget spreadsheets is matching categories up with lines that are on your income tax return at the end of the year. Either you are adding multiple numbers in one cell and triple checking you keyed them in correctly, or you are creating a detail spreadsheet from your PDF bank statement. While a basic budget spreadsheet is great, it is a rather manual process to prepare. You can add up all of your income and expenses in one place and be well prepared to drop your final numbers into your tax prep software. Take your budget spreadsheet to a whole new levelīudget spreadsheets are a great way to keep track of your finances. I’m going to give you some tips and tricks on how to do taxes in Excel, including a free tax tracker template you can download and start using right away. At the end of the day I have a small amount of time to wrangle with my own taxes, and I’ve tackled this challenge in the most accountant way possible with Excel. I spend a busy tax season helping my clients get control of their finances, managing the steady stream of bank statements, receipts, and mileage logs. Tax Time.Īs a CPA, the first and last thing on my mind is taxes. (You may omit the parentheses around the cells representing the expenses and revenue, but not the outer set of parentheses.Two words. The formula for this, for the second entry, reads =IF(A4="","",G3+(E4-F4)) if you're setting the spreadsheet up to track expenses, and it reads =IF(A4="","", G3+(F4-E4)) if you're setting the spreadsheet up to show cash on hand. If you want to keep the cell with the balance empty until a complete entry has been made, you can use an IF statement in the formula so that if a date hasn't been entered, the balance cell won't display a value.The parentheses around the cells representing the difference between expenses and revenue aren't necessary they're included just to make the formula concept a bit clearer.If you're setting the spreadsheet up to keep a running tab on your cash on hand, the balance formula would be =G3+(F4-E4).If you're setting the spreadsheet up to look primarily at your expenses, the balance formula would be =G3+(E4-F4), where G3 is the cell representing the previous balance, E4 is the cell representing the expense and F4 is the cell representing the revenue.Because the second and subsequent entries will keep a running balance, you need to add the result of the difference between the expense and revenue to the value of the balance for the previous entry.
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