An accounting tells us about our actual income and expenses, in contrast to a Budget, which is a projection of those amounts.
Here is how you proceed when you are making a spreadsheet in Excel:
Divide your various income and expenses into separate categories. These categories will depend on your sources of income (or the company’s). Often, you have already made a budget. Use the same categories as you used in the budget, plus any that were unexpected and you didn’t budget for.
Input the amounts for each category.
Sum your income, then sum your expenses.
Lastly, calculate the actual surplus or deficit by subtracting expenses from income.
Erica Clementine has tallied up all of her income and expenses last month. They are as follows:
Bookstore (part time)
Food and snacks
Clothes and shoes
Your job is to enter these numbers in Excel. Your spreadsheet should look like this:
Add up the income, then add up the expenses, to see if Erica Clementine had a surplus or a deficit this month.