Do you know how to calculate profit? Whatever small business you run, you should know some basic bookeeping things such as how to calculate profit and expenses. If you know to keep track of your business finances, you will have a more clear picture of what should be your next steps to take.
As most of you know, Microsoft Excel can be a very powerful bookkeeping tool for anyone running a small business of their own. It enables users to easily and effectively keep track of money coming in and leaving the company with easy-to-follow spreadsheets and formulas that are very simple to use when calculating profits and expenses. Here is a quick guide on how to calculate profit by putting together a spreadsheet in Excel. This guide can work in all versions of MS Excel.
Start Excel program and select four columns and a couple of rows, with the right click of the mouse. The next step is to click on the Insert tab and then on Table. Write the following values in the columns: Income, Expenses, Profit, and Percentage. Fill in the Income and Expenses columns.
Once you have done that, you can select the currency you are working with on the ribbon. You can find the currency settings when you click on Home tab. The dollar sign is in the Number section. When you click on it, you will see the drop-down menu, as shown on the image below.
Your table should now look something like this:
To get your profit, enter the formula “=a2-b2” into the c2 Profit cell.
Once you have calculated the profit amount, drag the corner of the cell to include the rest of your table.
In order to calculate your profit percentage, enter the following formula into the blank cell under Percentage: = c2 / a2.
You’ll see that you don’t have a percentage listed currently, but head over to the General tab up top and select Percentage.