How to Do Bookkeeping on Excel

Bookkeeping in Excel can be simple, fast, and automated when your workbook is set up correctly. Start by downloading your bank statement in Excel or CSV format from your bank account. Then paste the transactions into the General Ledger (GL) tab of the bookkeeping workbook. Built-in formulas and AI Copilot categorization help organize transactions into income, expenses, assets, liabilities, and equity automatically. Once categorized, the workbook instantly updates your Profit & Loss Statement, Balance Sheet, Statement of Cash Flows, Statement of Equity, and dashboard — giving you real-time financial clarity without expensive accounting software.

Cash Basis Bookkeeping (Using Bank Statements)

Step 1: Download Your Bank Statement

Download your bank transactions directly from your bank in:

  • Excel (.xlsx)

  • CSV (.csv)

  • PDF (if converting manually)

Step 2: Paste Transactions Into the Excel Workbook

Copy and paste your transactions into the General Ledger (GL) tab of the workbook.

Step 3: Categorize Transactions

Use the AI Copilot prompt or dropdown categories to classify transactions into:

  • Income

  • Expenses

  • Assets

  • Liabilities

  • Equity

Step 4: Review Auto-Generated Financial Statements

The workbook formulas automatically generate:

  • Profit & Loss Statement (P&L)

  • Balance Sheet (BS)

  • Statement of Cash Flows (SOCF)

  • Statement of Equity (SOE)

  • Financial Dashboard

Step 5: Analyze Your Business Performance

Use the dashboard and reports to track:

  • Revenue

  • Expenses

  • Profitability

  • Cash flow

  • Business growth trends

Accrual Basis Bookkeeping in Excel

Accrual bookkeeping records income when earned and expenses when incurred — even if cash has not been received or paid yet. Instead of relying only on bank statements, you manually enter invoices, bills, accounts receivable, and accounts payable into the workbook.

Accrual Basis Workflow (Invoices & Bills)

Step 1: Enter Customer Invoices

Record unpaid customer invoices into the Accounts Receivable or Sales section of the workbook.

Examples:

  • Invoice date

  • Customer name

  • Invoice amount

  • Revenue category

Step 2: Enter Vendor Bills & Expenses

Record bills received from vendors even if they haven’t been paid yet.

Examples:

  • Bill date

  • Vendor name

  • Expense category

  • Amount due

Step 3: Categorize Transactions

Use the AI Copilot prompt or built-in categories to classify:

  • Revenue

  • Expenses

  • Accounts Receivable

  • Accounts Payable

  • Assets

  • Liabilities

  • Equity

Step 4: Let the Workbook Update Automatically

Built-in formulas automatically update:

  • Profit & Loss Statement

  • Balance Sheet

  • Statement of Cash Flows

  • Statement of Equity

  • KPI Dashboard

Step 5: Track Outstanding Balances

Monitor:

  • Unpaid invoices

  • Unpaid bills

  • Customer balances

  • Vendor balances

  • Business profitability in real time

Why Use Excel for Bookkeeping?

  • No monthly subscription fees

  • Fully customizable

  • Familiar Excel interface

  • AI-assisted categorization

  • Instant financial statements

  • Better visibility into your business finances

  • Ideal for small businesses, freelancers, Schedule C filers, and landlords

Example Template Below