THE

EXCEL
ACCOUNTING
TEMPLATE
1.0

Do your own numbers in Excel - the simple way

Disclaimer
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Copyright © 2017 by Esset Financial Services

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The Excel Accounting Template
5 steps to do your own numbers

Stephan Zwanikken
 Contents

Contents
1 General information .................................................................................................... 7
1.1 System overview ...................................................................................................................... 7
1.2 Terms of use .............................................................................................................................. 7
1.3 Points of contact ...................................................................................................................... 7
1.3.1 Helpdesk ....................................................................................................................... 7
1.3.2 Members area ............................................................................................................. 7
1.4 Benefits ........................................................................................................................................ 8
1.5 Features ....................................................................................................................................... 9

2 Installing the Excel accounting template .............................................................. 11

2.1 Platform and software requirements ............................................................................. 11
2.2 Installation ................................................................................................................................ 12
2.3 Backups ..................................................................................................................................... 12

3 Getting started ............................................................................................................ 13

3.1 5 steps to do your own numbers .................................................................................... 13
3.2 System menu........................................................................................................................... 13
3.2.1 Options ........................................................................................................................ 14
3.2.2 Master Data ............................................................................................................... 15
3.2.3 Transactions............................................................................................................... 15
3.2.4 Timesheets & Mileage ........................................................................................... 15
3.2.5 Data Analysis ............................................................................................................. 15
3.2.6 Monitoring ................................................................................................................. 15
3.2.7 Documents ................................................................................................................. 16
3.3 Activation .................................................................................................................................. 16
3.4 Setting up the system .......................................................................................................... 16
3.4.1 Settings ....................................................................................................................... 17
3.4.2 Language .................................................................................................................... 18
3.4.3 Chart of Accounts.................................................................................................... 19

4 Entering master data ................................................................................................. 21

4.1 Customers ................................................................................................................................ 21
4.2 Suppliers ................................................................................................................................... 21
4.3 Products & Services .............................................................................................................. 22
4.4 Projects ...................................................................................................................................... 22
4.5 Employees ................................................................................................................................ 23

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The Excel accounting template

5 Recording transactions in the Excel accounting template .............................. 25

5.1 Income – recording sales transactions .......................................................................... 25
5.2 Expense – recording purchase transactions ................................................................ 26
5.3 Bank – recording bank and credit card transactions ............................................... 27
5.4 Cash – recording cash transactions ................................................................................ 28
5.5 Journal entry – recording special transactions........................................................... 29
5.6 Opening balance – stating your opening balance ................................................... 30
5.7 Timesheets & Mileage......................................................................................................... 30
5.7.1 Timesheets ................................................................................................................. 30
5.7.2 Mileage ....................................................................................................................... 31
5.8 Special instructions for error correction ....................................................................... 31
5.8.1 Solving integrity check errors when recording transactions .................. 31
5.8.2 Fixing formula errors (such as #REF, #VAL, ######, etc.) ....................... 32
5.9 Caveats and Exceptions ...................................................................................................... 33

6 Creating business documents ................................................................................. 35

6.1 Make an invoice or credit note ........................................................................................ 35
6.2 Send a proposal/offer.......................................................................................................... 37
6.3 Print a packing list................................................................................................................. 37
6.4 Send a reminder .................................................................................................................... 38
6.5 Monitor invoices .................................................................................................................... 38
6.5.1 Sales invoices ............................................................................................................ 38
6.5.2 Purchase invoices .................................................................................................... 39

7 Analysing your business using reports................................................................. 41

7.1 Dashboard ............................................................................................................................... 41
7.2 Summary................................................................................................................................... 42
7.3 Trial Balance ............................................................................................................................ 45
7.4 P&L and Balance Sheet ....................................................................................................... 45
7.5 Tax Report ................................................................................................................................ 47
7.6 Top 10s...................................................................................................................................... 48
7.7 Project Report......................................................................................................................... 49
7.8 Time Report ............................................................................................................................. 50

8 Closing the year end ................................................................................................. 51

8.1 Prepare the Adjusting Entries ........................................................................................... 51
8.2 Make the Closing Entries.................................................................................................... 52
8.3 Prepare the Opening Balance........................................................................................... 53

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 1 General information

1 General information
In this chapter, we provide you with general information about the Excel accounting
template for small business owners.

1.1 System overview

An intelligent accounting template for small business owners:

▪ An Excel based accounting system on a Windows or macOS Platform

▪ Tabular system for easy transaction recording
▪ Visual dashboards and reports for management guidance
▪ Automatic invoicing based on income records

1.2 Terms of use

Esset Financial Services provides you with access to a variety of resources on the
website www.excelaccountingtemplate.com, including documentation and other
product information, download areas, communication forums, import modules
and other services and tools and samples. All documents and resources are subject to the
following terms of use, unless we have provided those items to you under more specific
terms, in which case, those more specific terms will apply to the relevant item. We reserve
the right to update the terms of use at any time without notice to you. The most current
version of the terms of use can be reviewed by clicking on the "Terms of Use" hypertext link
located at the bottom of our Web pages.

1.3 Points of contact

1.3.1 Helpdesk
Our primary point of contact is our helpdesk system.

https://www.excelaccountingtemplate.com/support

1.3.2 Members area

In the members’ area, you find additional resources

https://www.excelaccountingtemplate.com/my-account

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The Excel accounting template

1.4 Benefits

Do you feel helpless when it comes to your accounting? Are you tired of receiving
a huge bill from your accountant, year after year, for services that you could easily
be doing yourself? Are you fed up with paying for a service that is purposefully
shrouded in mystery and secrecy (because if you actually knew how simple it was, you’d
never pay an accountant again)? Do you wish there was a simplified system that would allow
you not only save time, but thousands of dollars in unnecessary fees, by doing your own
numbers?

Using the Excel accounting template saves you time you can spend with your family and
saves you money you can invest in your business. Now doing your own accounting
effortlessly is as simple as filling out a table.

With the Excel accounting template, you can:

▪ Do your accounting with standard business software you already own. Don’t worry, this
is an exceedingly simple process, even the most unorganized, non-tech savvy person can
understand.
▪ Have your entire accounting system set up and running on autopilot in under 1 hour.
▪ Comply with both your needs and legal requirements
▪ Record your transactions as easy as filling out a simple table. You don’t have to learn
new software.
▪ Avoid making fatal mistakes and additional tax assessments when recording your
transactions. Our unique cheat sheet and integrity checks throughout the template make
sure you always choose the right category. This step-by-step process takes out ALL of
the guesswork, so you can be confident that everything is organized and accounted for
in the right order.
▪ Create invoices, offers, credit notes, reminders and packing lists instantly (no double
input). All you must do is select the invoice number and your document is ready to be
printed or saved as a PDF-file and sent to your customer.
▪ Save hundreds of dollars on accounting fees and software. No monthly fees. You only
pay a small annual fee for your activation code, updates and extended support.
▪ Analyse your business with intelligent and professionally designed dashboards and
reports.

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 1 General information

1.5 Features

The Excel accounting template is an all-in-one solution for your accounting

needs. Simple-to-use, easy-to-understand and very affordable. This edition of the
Excel accounting template comes with:

▪ recording of sales, purchases, bank, credit card and cash transactions & journal entry
▪ entering master data for customers, suppliers, products & services, projects and
employees
▪ recording of timesheets and mileage
▪ multilingual user interface: standard in English, Dutch, French & German plus choose
and edit your own language
▪ multiple years in one template
▪ extensive reporting modules: dashboard, summary, profit & loss, balance sheet, tax
report, trial balance, project report, time report, top 10s
▪ integrity checks throughout the template
▪ ultimate flexibility: change company data, master data, chart of accounts, timesheet
categories, VAT rates, data formats, payment terms etc.
▪ automatic creation of invoices, reminders and packing lists in 10 difference colours
based on sales ledger

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 2 Installing the Excel accounting template

2 Installing the Excel accounting

template
In this chapter, you learn how to install the Excel accounting template. Don’t worry, this is
extremely simple. But before you do that, please make sure your computer and business
software meets the requirements.

2.1 Platform and software requirements

Because of the complexity of the formulas within the Excel accounting template,
you will need to utilize our software within Microsoft Excel. Once again, don’t
worry, you do not have to worry about these formulas. All you need to do is fill
in the blanks.

The Excel accounting template works with Microsoft Excel 2007 for Windows (or newer) and
Microsoft Excel 2011 for Mac (or newer). We recommend using the latest version of
Microsoft Excel, which currently is Excel 2016 within the Office 365 suite (both PC and Mac).

Computer Part Requirement

Computer and If you are using a PC, you will need a processor with at least 1GHz
Processor speed. For Mac, it should be a bit higher speed and should be Intel.
Memory Office 365 Basic can run on 2GB RAM on PCs. For Mac, it should be
4GB.
Disk Space HDD space for running Office 365 home should be 3GB while for Mac,
it should be 6GB and the HDD format for the latter should be what is
called Mac OS Extended format or HFC plus.
Station No Cd-rom-station or dvd-rom-station is needed
Monitor Display requirements for both PC and Mac are 1280 x 800 resolution.
Operating system Operating system should be the latest as far as possible

If you do not have a copy of Microsoft Excel you can download a free trial via the link below:

https://products.office.com/en-us/try

The Excel accounting template does NOT work with open source software such as
OpenOffice, Google spreadsheets or Numbers for Mac.

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The Excel accounting template

2.2 Installation

Installation is very simple. The Excel accounting template is offered per download.
You only need to save the Excel accounting template to a location on your hard
drive. After completion of your order you will receive an email with your
download details. In the customer section of the website, you can also download your
product(s) if you have a valid license. Save the product to your hard drive in a folder that you
can quickly find.

Important

You must first extract the ZIP file before working in Excel. Locate the folder where you saved
the ZIP file. Right-click on the ZIP file and select Unzip all. Once everything has been
unpacked, then you open your Excel accounting template.

If you open an Excel-sheet directly from a ZIP file, you will often get a "Read Only" error
message.

No macros – better security

The Excel accounting template was deliberately designed without any macros. Only formulas
are used to help you process your transactions, create your business documents and draw
up professionally designed dashboards and reports. The absence of macros makes your
template much more secure.

Tip 1

Please save your file using a logical filename for easy reference. For example:
Accounting_YourCompanyName_2017-001.xlsx

Tip 2

When saving your worksheet always use a new serial or reference number. In case something
goes wrong you can always continue working in a previously saved template. You have not
lost all of your work right away.

2.3 Backups

Since you are installing the template on a local hard drive, please make sure to
backup your files regularly. You can manually back up your files on an external
hard drive or an USB stick. I personally prefer the cloud. Since you are working
with Microsoft Excel you most likely have OneDrive installed as well (Office 365 come with 1
TB free space). Once you save your files in the OneDrive directory of your computer all your
files are automatically uploaded to the cloud.

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 3 Getting started

3 Getting started
This section provides a general walkthrough of the Excel accounting system from activation
through exit. The logical arrangement of the information shall enable you to understand the
sequence and flow of the system.

3.1 5 steps to do your own numbers

5 simple steps to do your own numbers using the Excel accounting template:

1. Activate and setup your Excel accounting template to your needs

2. Enter master data: customers, suppliers and products & services

3. Record transactions as simple as filling out a table

4. Automatically create and send all your essential business documents

based on recorded transactions

5. Analyse the financial development of your business with beautifully

designed dashboards and reports

3.2 System menu

This section describes in general terms the system menu first encountered by you, as well as
the navigation paths to functions in the system. The main menu consists out of 7 areas which
we be briefly described in the following paragraphs.

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The Excel accounting template

3.2.1 Options
The Options section helps you activate the software using the License tab and
setup the software to your own needs. The Settings area will allow you to enter
your company information as well as to make several adjustments that work
throughout the template, such as the chosen language, reporting year and VAT rates.

The Excel Accounting Template is currently translated in four different languages: English,
Dutch, French and German. There is room for 2 more languages. In the Language tab, you
make changes to the translations.

Account numbers and names are organised in the Chart of Accounts tab as well as Groups
and Subgroups of these accounts. We have made a direct link to the Groups section for your
convenience.

The Quickstart Guide helps you to get quickly started with the template. Please pay special
attention to the correct work order to avoid difficulties in the process.

The Changelog shows the development of the template through time, while the Support
tab gives information on how to get help if you get stuck.

The last section Checks is very important. Throughout the workbook all kinds of integrity
checks are made to help you correctly process all transactions. If you made no mistakes all
differences should be zero.

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 3 Getting started

3.2.2 Master Data

All business objects that have static reference data are conveniently grouped
together. This data is non-transactional in nature and supports the transactional
processes. The Excel accounting templates recognises five types of master data
which are used throughout the template as a single source of common business data:

1. Customers
2. Suppliers
3. Products & Services
4. Projects
5. Employees

3.2.3 Transactions
All your financial transactions are recorded in this section. Next to sales and
purchases you can process transactions of up to 4 banks or credit cards. Special
transactions are recorded in the Journal Entry tab such as depreciation and
salaries. The opening balance is recorded in its own tab.

3.2.4 Timesheets & Mileage

Next to your financial transactions you can record your hours spent and miles
driven. The data recorded in these two tabs are organised and reported in a smart
and clear way. You will have an instant understanding of how you spend your
time and/or how many miles you have driven for which customer or project.

3.2.5 Data Analysis

We have spent a lot of time presenting vital financial information to you in
smart dashboards, easy-to-read tables and quick overviews. You instantly get
insight in the profitability of your business, cashflow development, sales and
results, outstanding invoices, your best customers and your top selling products and much,
much more...

3.2.6 Monitoring
Once you have recorded your sales and purchase transactions you will want to
keep track of any outstanding invoices. You can easily monitor both categories
using the Income Monitor and Expense Monitor. You instantly see if payments
are overdue.

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The Excel accounting template

3.2.7 Documents
Based on the recorded sales transactions you can easily generate the following
business documents: invoices, offers/proposals, credit notes, copy invoices
proforma invoices, packing lists and reminders. Simply select the appropriate
invoice number and your documents are automatically generated. Now save your document
as a PDF and send it to your customer. You can add your own logo and chose from 10
difference colours to match with your business identity.

3.3 Activation

The Excel accounting template is downloaded with limited activation. This means
you will be able to set up your system and to enter your transactions for the first
10 lines. However, to continue processing transactions you must obtain your
activation code by completing the Activation Process below.

1. Please open the Excel file called Activation. A copy of the Activation file is provided in
your download and can also be found in the members area of our website. You will be
prompted to supply the following information:
a. Your Company Name
b. Your Post Code/ZIP Code
c. The License Year
2. The program will then generate a Validation Code.
3. Please save the file and forward it to our support desk by submitting a ticket at
https://www.excelaccountingtemplate.com/support.
4. Once we receive this information we will forward your Activation Code and initiate your
one year of free support.
5. Now open the Excel accounting template and go to the License tab. Enter the Company
Name, ZIP code, License Year and Activation Code.
6. Please read and accept the Terms of Use.

3.4 Setting up the system

The Excel accounting template has been designed with a lot of flexibility to support your
business requirements and personal preferences. You can set your preferences in 3 sections:

▪ Settings
▪ Language
▪ Chart of Accounts.

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 3 Getting started

3.4.1 Settings
In the Settings tab, you can change the following:

▪ Business Settings: these settings include your company information which is mainly
used to create your business documents (invoices, packing lists, reminders etc.). In this
section, you also set the general payment term for your customers and the validity period
of your offers. In the Customers tab you can deviate from the standard payment on a
customer level.
▪ Year Settings: the Excel accounting template allows to process transactions for multiple
years in a single worksheet. Please set the years that apply for your transactions.
▪ Timesheets Settings: in this section, you enter categories you wish to use when
recording hours worked in the timesheets.

▪ General Settings: in this section, you choose your language and set the reporting year.
All reports are based on the reporting year you select. If you live in a different country
you can set the currency format and date format to fit local requirements. Please select
your first invoice number carefully. Do NOT change this number once you start working
with the template.
▪ VAT Settings: each country has different VAT rates. You can set up to 5 VAT rates. Please
ensure that NO two rates are the same.
▪ Trade name Settings: enter trade names to select for your invoices.
▪ Age Analysis Settings: for income monitoring purposes, you can set 4 different age
groups. The standard groups are: 0 days (for invoices not yet overdue), 1 – 30 days
overdue, 31 – 60 days overdue and 60+ days overdue.

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The Excel accounting template

▪ Account Settings: in this section you must select ‘reserved’ account numbers used for
accounts receivable, accounts payable, banks, cash and credit cards, inventory and taxes.
Please give logical names to your bank and credit card accounts to facilitate navigation.
The names will show up in the navigation menus.
▪ Documents Settings: you can create up to 6 different document types based on
recorded Income transactions. Please choose logical abbreviations. For now, they are set
to the number 1 through 6. The third column represents the text that appear on the
document.

3.4.2 Language
The Excel accounting template is a multilingual product. Select your language at General
Settings. You can make any changes in the translations in the Language tab. The standard

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 3 Getting started

languages are English, Dutch, French and German. You can manually add Spanish or any
other language.

3.4.3 Chart of Accounts

All reports are prepared from data which is classified as either relating to the (1) Profit &
Loss or (2) Balance Sheet.

(1) The Profit & Loss (or Income & Expenditure for 'Not for Profit' organisations) is typically
divided into two main sections:

▪ The section dealing with Sales & Income and the costs associated with Sales &
Income (Cost of Sales)
▪ The section dealing with other business expenses or overheads

(2) The Balance Sheet is concerned not with profitability, but with recording the values of
Assets and Equity & Liabilities.

This top level of accounts is called Groups.

WARNING WHEN MAKING CHANGES TO THIS DATA

The data you input into this worksheet will be used by the Entire System for All Years. This
means that if you make changes to your initial entries you could compromise your existing
data.

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The Excel accounting template

Accounts can be logically ordered in subgroups for reporting purposes. You can change
them to fit your business needs.

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 4 Entering master data

4 Entering master data

4.1 Customers

The table Customers is used to record sales transactions per customer. All you
must do is enter your customer data in this table. Sales are automatically totalled
per customer per reporting year as well as all time total. Customer rankings are
based on recorded sales in the Income tab only.

In column, I you can specify a different payment term for a customer if you want to deviate
from the standard payment term.

When you select an Intra-community code in column N the customer is considered an

international customer which are not charged with VAT. You can rename the column header.

Columns O, P and Q can be used at your own discretion (e.g. policy number, identification
codes etc.).

4.2 Suppliers

The table Suppliers is used to record purchase transactions per supplier. This table is like the
Customer table.

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The Excel accounting template

Note

The system will warn you if you forget to enter a customer or supplier name when recording
sales and purchase transactions. If you prefer not to use customers and/or suppliers when
recording sales, please ignore the error message. Or simply enter one dummy customer and
supplier which you use for all transactions.

4.3 Products & Services

All sales transactions from the Income tab contain products and/or services sold
to your customers. Use this table to identify all your products and services you
are selling. Simple enter a product or service ID, name, unit (e.g. hours, miles,
pieces, dozens), a standard price and the standard VAT rate. Three extra fields are available
for your convenience. All sales (both in numbers as well as amount) are automatically added
based on the recorded sales in the Income tab.

4.4 Projects

All sales and purchase transactions can be assigned to a project for recalculation purposes.
This way you can instantly see if your projects are profitable or not. An extensive project
report will show you the details.

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 4 Entering master data

4.5 Employees

The table Employees is used for assigning hours worked to your employees. Sales are
calculated based on the timesheets and hourly rate (both are recorded in the timesheets).

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 5 Recording transactions in the Excel accounting template

5 Recording transactions in the Excel

accounting template
This section provides a detailed description for recording business transactions
in the Excel accounting system, explaining in detail the characteristics of the
required input and system-produced output. You should keep documentary
evidence of ALL your business transactions.

5.1 Income – recording sales transactions

All sales invoices, credit notes, offers/proposals, proforma invoices and order
confirmations are recorded in the Income tab. In most countries, you must use
consecutively numbering, that is why your invoice numbers are automatically
generated. Per document you can enter multiple line items. Once you enter a different date
or select another customer the document number will automatically increase by one.

Enter the sales date, select the document type, select a customer and product/service. Then
enter the quantity sold/offered. You may deviate from the standard price by entering a new
price in column Q. Next enter the applicable VAT rate and subject or description of the
services rendered.

Then select an account number (which in almost all cases should be a revenue account, any
account in subgroup 200 Revenue). Range: 2000 - 2050

If applicable you can enter a project number, a (customer) reference code and two text lines
that appear on the invoice as a thank you note or comment.

Finally, you can decide on giving a discount to your customer or not. Simply enter a negative
percentage per line item.

That’s it! Congratulations! You are all done! You have recorded your first sales transaction
and your invoice is already generated. All you need to do is select the invoice number in the
Invoice tab.

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The Excel accounting template

5.2 Expense – recording purchase transactions

Expenses are recorded in a similar fashion. We strongly recommend using

consecutively numbering for your purchases invoices as well. This we you can
easily file and find your documents when needed. Pick your first (internal)
document number for purchase invoices and enter it in cell D10. All subsequent invoices will
automatically be numbered. Once you recorded the invoice write this number in the top
right corner of the invoice.

Now start recording the purchase invoice by entering the invoice date and the invoice
number given by your supplier (used for reference when paying your invoices). Then select
the supplier and enter a description.

Now select an account number. You basically have four choices:

1. If you made a capital expenditure for machinery, computers etc. then select an account
from the Long-Term Assets category. Range: 700 - 830
2. If the purchase concerns inventory for future production or sales then select an account
from the Inventory category. Range: 400 - 420
3. If you made expenses directly linked to your sales (e.g. hiring a subcontractor) then
select an account from the Cost of Sales category: Range: 2200 - 2290
4. All other expenses will be recorded as overhead. Range: 2500 - 3098

If applicable you can enter a project number and a (supplier) reference code. Two extra data
fields are available for your convenience.

Finally enter the applicable VAT rate and enter the invoice amount including VAT.

Well done! You just recorded your first expense invoice.

Per document you can enter multiple line items. Once you enter a different date or select
another supplier the document number will automatically increase by one.

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 5 Recording transactions in the Excel accounting template

5.3 Bank – recording bank and credit card transactions

Bank and credit card transactions are recorded in one of the four available bank
ledgers. You can change the name of the bank account in the Settings tab. We
recommend consecutively numbering for your bank transactions as well.

Per transaction you enter the transaction number, invoice number (if applicable), date,
account number, a short description and the amount received/paid. The VAT columns are
rarely used. Only enter a VAT amount if no invoice was issued before and you pay your
supplier or receive payment from your customer. If this is the case, then don’t forget to enter
the VAT rate.

The list below contains instructions for the most common situations (90% or more):

▪ Did a customer just pay you? Please enter the sales invoice number in column C and
select Accounts Receivable (300) in the account number column (F).
▪ Did you pay one of your suppliers? Then enter the purchase invoice number in column
D and select Accounts Payable (1000) as the account number in column (F).
▪ Did you transfer money to one of your other bank accounts? Make sure you select a
suspense account in both banks. E.g. 1180 Transfers between A/C's.
▪ Did you withdraw money for private purposes? Select 1320 Owners draw.
▪ Did you transfer personal money into your business account? Select 1310 Owners
contributions.
▪ Did your bank charge you banking fees? Then select 3210 Bank fees.

Using credit cards

Four simple steps how to use credit cards with the Accounting template.

▪ First, rename one of your bank accounts. E.g. change Bank 2 to Company card
▪ Next, record all your purchases in the Expense tab.
▪ Then, record charges to your credit card as payments to suppliers – selecting the
purchase invoice numbers in column D and Accounts Payable (1000) in column F.

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The Excel accounting template

▪ Finally, when you pay your credit card bill with your business account (or when the bank
collects the money), then select 1180 Transfers between A/C's (in both banks).

Importing bank statements

Import modules are available (or can be made available) for your bank statements free of
charge. With a few simple copy-and-paste actions your bank transactions are quickly
transferred into the Excel accounting template. Saving you a lot of time and preventing any
type errors. Detailed instructions are provided with the import modules.

5.4 Cash – recording cash transactions

If you have physical money presence in your business, then you need to record
your cash transactions in the Cash tab.

Recording cash transactions is like recording bank transactions. However, you can
also record cash sales per product. If you record a cash sale, NO invoice will be created, since
you will give the customer a receipt from the cash register or manually write one.

The interface is a bit different. First, you enter the transaction number, invoice number (if
applicable), the date and the account number. Next, enter a short description for your
reference.

Cash sales? Select the product or service number, a revenue account (range: 2000 – 2050),
the quantity sold, the selling price excluding VAT, the applicable VAT rate and a plus (+) for
incoming money.

Cash purchases? Enter quantity 1, price excluding VAT, the applicable VAT rate and minus
(–) for outgoing money. Follow instructions on selecting the account number according to
recording purchase transactions.

Customer pays invoice in cash? If a customer pays an invoice in cash, then select the sales
invoice number, enter the date, select account 300 Accounts Receivable. Quantity is 1. Price
is the amount received and VAT rate is 0% and plus (+) for incoming money.

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 5 Recording transactions in the Excel accounting template

Paying purchase invoice in cash? When you pay a purchase invoice in cash, then select the
purchase invoice number, enter the date, select account 1000 Accounts Payable. Quantity is
1. Price is the amount paid and VAT rate is 0% and minus (–) for outgoing money.

Cash withdrawals and deposits? To a bank account, select 1180 Transfers between A/C's.
For private purposes, select either 1320 Owners draw or 1310 Owners contributions.

5.5 Journal entry – recording special transactions

Traditional bookkeeping is done in so-called journal entries and this section is used for
recording ‘special’ business transactions, such as depreciation of fixed assets, salaries,
accruals, cost of sales, dividends etc.

The process is straightforward. Enter a transaction number and date, select an account, a
short description and the debit or credit amount. The VAT rate is only used when you want
to record a sales or purchase transaction in the section, which is not recommended.

You MUST always enter at least 2 lines. Make sure to ALWAYS balance your journal entries.
This means, the total debit amount equals the total credit amount.

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The Excel accounting template

5.6 Opening balance – stating your opening balance

The Opening balance works the same as Journal entries, but is solely used for opening
balances.

The transaction date is in principal the first of January. Once again, please make sure that
the total debit amount equals the total credit amount.

5.7 Timesheets & Mileage

5.7.1 Timesheets
The accounting template is provided with a simple way to log your activities. Hours worked
can be assigned to an employee, customer and/or project. A timesheets report is
automatically created based on this table.

Timesheet categories can be changed to your needs in the Settings tab.

For reporting purposes, please select if hours worked are billable to a customer and enter
an invoice number and hourly wage if you charged the hours to a customer or project.

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 5 Recording transactions in the Excel accounting template

5.7.2 Mileage
You can also record all your business (+) and personal trips (–) in the mileage log. Simply
enter the required date in the columns. The top report is instantly updated.

5.8 Special instructions for error correction

5.8.1 Solving integrity check errors when recording transactions

The Excel accounting template assists you in avoiding (fatal) mistakes when
processing your transactions as much as possible. A warning will appear in the
Checks column when you make a mistake. The following messages may appear:

▪ Select account #: select the account number mentioned. E.g. if you entered a sales
invoice, you must select the account Accounts Receivable
▪ Supplier unknown: enter a valid supplier name (select from the dropdown list)
▪ Customer unknown: enter a valid customer name (select from the dropdown list)
▪ Select Sales invoice: if you have selected the account Accounts Receivable, you must
select a sales invoice (from the dropdown list)
▪ Select Purchase invoice: if you have selected the account
Accounts Payable, you must select a purchase invoice (from the
dropdown list)
▪ Date not entered: enter a date
▪ Account# unknown: enter or select a valid account number from
the dropdown list
▪ Account# not allowed: you have selected a reserved account,
select a different account number
▪ VAT calculation: the VAT amount entered differs from the VAT
amount calculated, redo your calculations
▪ OK: congratulations, everything is fine!

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The Excel accounting template

You will also find our Checks report. There should be no differences. Most differences occur
when you have not yet solved an error in one of the sheets. The Error(s) report on the right
shows how many error there are in the sheets.

At the bottom you see a Sales Tax Report & Trial Balance reconciliation. Enter all subgroups
containing Sales accounts in the table next to it.

5.8.2 Fixing formula errors (such as #REF, #VAL, ######, etc.)

######

If you see ###### in some cells, this is a result of the column (in which the cell resides) not
being wide enough. Select a cell in the column you would like to widen. Select Format on
the menu bar and then Column, Width…

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 5 Recording transactions in the Excel accounting template

#REF, #VAL etc.

Other formula errors only occur when you (accidentally) move or drag data in the
spreadsheet (e.g. using cut and paste). You have 4 options to fix formula errors:

1. (Repeatedly) press Ctrl+Z to undo any last changes you made in the template.
2. Open a previously saved worksheet and redo your last work.
3. Copy and paste your data in a fresh copy of the Excel accounting template (see
instructions below)
4. Send in a support ticket, attach your template and make sure to mention the location of
the error(s).

Please follow the instructions below to copy and paste your data in a fresh copy of the Excel
accounting template:

▪ Select all the data that you previously entered into your transaction sheets (income,
expense, banks, cash, journal entry, opening balance). You can do this by selecting the
very first input cell in the upper left of the input range with your mouse. Next, drag the
mouse and select all the cells you would like to copy over to the new program. Please
not that you can only copy white (non-secure) cells. So, you may have to this procedure
several times per sheet.
▪ Once you have all the appropriate cells selected, you will select Copy from the Excel
menu up above.
▪ After copying your existing transaction data, you will then want to select the first input
cell (within the appropriate transaction sheet) in the blank copy of the Excel accounting
template.
▪ Click Paste on the Excel menu above. (You will want to use the Paste Values function
instead of the standard Paste function. In Excel 2007 or later, you can locate the Paste
Values function by clicking the down arrow under the Paste icon in the Excel menu.)

5.9 Caveats and Exceptions

▪ I cannot emphasize strongly enough that you make regular backups of your accounting
template or save your template in the cloud.
▪ When you start working in the template, please make it a habit of first saving the file
with a new serial number or identification.
E.g. Accounting_BusinessName_20170524.xlsx.
▪ NEVER use drag and drop to relocate information in your accounting template. You
could compromise your accounting template. If you must relocate information, please
copy the data to the new location (always use Paste special, values) and delete the cell
contents (press Delete)

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 6 Creating business documents

6 Creating business documents

The Excel accounting template automatically creates the following business
documents based on the recorded transactions in the Income tab: invoices, credit
notes, proposals/offers, proforma invoices, copy invoices, packing lists and
reminders. In this section, you will learn how to create, modify and monitor those documents.

6.1 Make an invoice or credit note

It is very easy to create an invoice or credit note using the Excel accounting
template. All you need to do is select the invoice number from the dropdown
menu and you are done. Now save it as a PDF and send it to your customer.

An invoice contains a maximum of 15 line items which should be sufficient for most
businesses. Feel free to change the layout and appearance of your invoices as you please
(e.g. font type and size, colours, column widths, row heights, show/hide VAT rates etc.).

You can change the logo by right-clicking it and select Change image… Then select your
own logo from your hard drive.

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The Excel accounting template

Document options

For now, the Excel accounting templates comes with one invoice design. However, we plan
on adding more designs in the future. On the right, you will find some options regarding
your invoice:

▪ Document type: this is based on the selected document type in the sales ledger (Income
tab). You can change the actual wording of the documents in the Documents Settings of
the Settings tab. So, if you wish to use lower case fonts for the word ‘INVOICE’, simply
change it to ‘Invoice’ in the Settings tab.
▪ Invoice Number: select the invoice number from the dropdown menu. The customer
name is displayed underneath the invoice number.
▪ Invoice Colour: all documents can be printed in 10 different colours. Simply select your
preferred colour from the dropdown menu.
▪ Invoice Type: a Product invoice will show the product description column (M) from the
Income tab as line items. A Service invoice will display the Subject column (S) as line
items. This is convenient if you want to give a more accurate description of your services
rendered to the customer.
▪ Payment term: the payment term is displayed for your reference and used to calculate
the due date.

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 6 Creating business documents

6.2 Send a proposal/offer

Sending a proposal/offer is no different than

creating invoices/credit notes, because the
document type is based on what you entered in the
Income tab (column F).

6.3 Print a packing list

Packing lists are also generated based on the

recorded sales in the Income tab. Simply select the
invoice number for which you wish to create a
packing list.

Warning. You will need to manually set the status

per line item for each packing list. This is not
automated.

Feel free to add your own text at the bottom of the

packing list.

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The Excel accounting template

6.4 Send a reminder

Unfortunately, not all customers pay on time. You

can quickly send a kind reminder by selecting the
invoice concerned. If any legal interest is due, it is
automatically calculated. You can set the interest rate
at the Settings tab.

6.5 Monitor invoices

6.5.1 Sales invoices

This report is meant to monitor outstanding sales invoices. In this table, all documents are
displayed on a single line.

Non-sales documents such as offers, copy invoices and proforma invoices do not contain
amounts, since there is no money outstanding (yet).

Overdue categories can be set in the Settings tab. The standard groups are: 0 days (for
invoices not yet overdue), 1 – 30 days overdue, 31 – 60 days overdue and 60+ days overdue.

Use the last three columns to enter dates when you have send reminders or a summon.

Any legal interest due is automatically calculated.

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 6 Creating business documents

6.5.2 Purchase invoices

A similar table is automatically generated for monitoring your purchase invoices. Please
make sure to pay your suppliers on time too.

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 7 Analysing your business using reports

7 Analysing your business using

reports
Now the fun part begins! In this chapter you will get acquainted with your
business reports. These reports will support you in financial analysis and decision
making.

7.1 Dashboard

The dashboard provides you with all the important information any business owner would
want to see at a glance: the cash position, the amount of outstanding invoices, sales, costs
and result. The development of cashflow, sales, costs and result are presented in graphs. And
finally the age analysis of outstanding sales and purchases invoices and your top customers.

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The Excel accounting template

7.2 Summary

The summary gives you an extensive overview of the financial situation of your business.

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 7 Analysing your business using reports

On the second page the Profit & Loss statement is published as well as some financial
metrics.

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The Excel accounting template

The last page shows your Balance Sheet and the age analysis of outstanding invoices. Both
the Profit & Loss Statement and the Balance Sheet are shown per quarter as well as the
whole reporting year. By the way, you can set the reporting year in the Settings tab.

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 7 Analysing your business using reports

7.3 Trial Balance

The Trial Balance shows the balance per account based on the recorded
transactions. The balance is shown as a total, per ledger, per quarter and per
month. The Trial Balance is used for creating all other reports, such as the Profit
& Loss Statement and the Balance Sheet. The totals are used at the yearend closing.

7.4 P&L and Balance Sheet

The Excel accounting template automatically generates the financial statements:

Profit & Loss Statement and Balance Sheet. This is a non-traditional display,
however it is very flexible. Please bear in mind, a debit amount is displayed as a
positive value and a credit amount as a negative value. Since all sales are recorded as a credit
amount and costs as a debit amount, a profit is shown as a negative value! This is done on
purpose to comply with regular accounting principles.

Important! If you have changed or created groups of accounts you must make sure all
(sub)groups are entered in the Group# column. Otherwise, the bottom row with checks will
show a balance other than zero.

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The Excel accounting template

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 7 Analysing your business using reports

7.5 Tax Report

Next is the Tax Report. Use this report to do you periodic VAT returns. The software retrieves
data from your recorded transactions and collates the information.

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The Excel accounting template

7.6 Top 10s

Are you wondering who is your best customer? Do you want to know your best
selling products or services? Then this report will make you happy. You will also
find the ranking of customers, suppliers, products and projects in the data sheets
containing the master data themselves. In case you wondered who or what is number 11…

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 7 Analysing your business using reports

7.7 Project Report

When recording sales and purchase transaction you can assign a project code. The project
report is generated based on this. Simply select a project code in cell G14 to create your
project report. The first part shows the result for the reporting year, while the last columns
display the profit & loss per year.

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The Excel accounting template

7.8 Time Report

The Time Report is generated based on your timesheets. Select the concerning employee in
cell C14 to create this report.

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 8 Closing the year end

8 Closing the year end

Many small businesses use a straightforward cash method of accounting,
reporting income in the accounting year in which they receive it and deducting
expenses in the year in which they pay them. However, if your business has any
kind of inventory, you must use the accrual method, in which you report income and
expenses in the year in which you earned or incurred them. At the end of your accounting
year, you make adjusting entries to match sales and purchases in the correct year before
closing the year end.

8.1 Prepare the Adjusting Entries

Read and follow these instructions closely. Please note that the adjusting entries are made
in the Journal Entry tab.

1. Create a backup of your Excel accounting template and prepare an income statement
and balance sheet report.
2. List all expenses paid in advance, where the term of the expense goes into the next
accounting year. For example, if you pay annual insurance premiums of $1,000 on July 1
and your accounting period ends on December 31, at year-end, you will have prepaid six
months of cover, or $500, for next year.
3. Credit the expense account with the prepaid expense, reducing the expense for the
year, and debit the prepayments account in the balance sheet. In the example, credit the
insurance account (e.g. 2650) with $500 and debit Prepaid expenses (500) with the same
amount.
4. List all expenses the business has incurred but not yet recorded or paid. For example,
your last electricity bill was for the quarter that ended October 31 and you will not receive
another bill until after January 31. Estimate the cost of electricity for November and
December.
5. Debit the expense account and credit the accruals account in the balance sheet with the
accrued expense. For example, if you estimate your electricity expense for the two
months at $750, debit the utilities account (2620 Light, heat and water) and credit
accruals (1120 Accrued expenses) with $750.
6. List any income the business has earned but not yet billed. For example, you may
invoice customers in January for work done in December. This is accrued revenue and
should be included in December's income.

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The Excel accounting template

7. Credit the revenue account (e.g. 2000) and debit accounts receivable with the amount
earned in December. For example, if you have recorded $600 of work in December to be
billed in January, credit the revenue account with $600 and debit 520 Unbilled revenue
in the balance sheet with the same amount.
8. Calculate the depreciation of the company's fixed assets to spread the cost of each asset
over its useful life. For example, if you use the straight-line method of depreciation, you
depreciate your assets by an equal amount in each accounting period.
9. Debit depreciation expense account with the total depreciation for the year and credit
accumulated depreciation in the balance sheet. If you have calculated depreciation on
motor vehicles to be $1,000 and depreciation on office equipment at $500, debit
depreciation expense account (3130 Motor depreciation) and credit accumulated
depreciation (770 Motor depreciation) with $1,500.

8.2 Make the Closing Entries

The next steps show the preparation steps to make the closing entries. The next paragraph
gives you detailed instructions on how to create the opening.

1. Prepare/print an adjusted trial balance and income statement.

2. Close all income statement accounts that have a credit balance by debiting them with
the amount of the credit balance and posting the same amount as a credit to the
temporary income summary account. For example, if you have three income accounts
with credit balances of $5,000, $20,000 and $75,000 respectively, debit each account with
the amount of its credit balance to close it and credit the income summary account with
$100,000.
3. Close the income statement accounts that have debit balances. Credit the account
with the amount of its balance to close it and debit the income summary account with
the same amount. For example, if your utilities account has a debit balance of $5,000 at
year-end, credit utilities and debit income summary account with $5,000.
4. Calculate the balance on the income summary account and close the account by
transferring the balance to the owner's capital account for a sole proprietor (1300),
or to the retained earnings account for a corporation (1400). For example, if the
business has made a $50,000 profit for the year, the income summary account will have
a credit balance of $50,000. Debit the income summary account and credit the owner's
capital or retained earnings account with $50,000.
5. Transfer owner's drawings to the owner's capital account, or dividend accounts to the
retained earnings account. Drawings and dividend accounts will usually have debit
balances; credit drawings or dividends and debit owner's capital or retained earnings
account.

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 8 Closing the year end

8.3 Prepare the Opening Balance

The last step is to prepare the Opening Balance. These instructions will help you create yours.
Please follow these next steps:

1. First, make sure Checks are zero. Solve all issues before you continue.
2. The Opening Balance is based on the Trial Balance. Once you have made the adjusting
entries, set a filter on cell G8 by clicking on the little arrow in the bottom right corner of
that cell. Then deselect the value ‘-‘. Click OK. Now, only accounts are shown that has a
value.
3. Print the Trial Balance.
4. Now go to the Opening Balance sheet tab and start inputting the Opening Balance
for next year. Use 1/1 as a date.
5. Enter all Balance Sheet accounts (100 – 1420) with a value.
6. Sum up all P&L accounts (accounts 2000 – 3098) by . This amount should be your profit.
and add the balance to owner's capital account for a sole proprietor (1300), or to the
retained earnings account for a corporation (1400).
7. It is recommended to aggregate VAT accounts and put the balance on 1155 VAT
paid/received. Once you made the final VAT payment this account should be zero again.
8. Finally, go to General Settings in the Setting tab and change the reporting year to next
year.

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