Preparing Monthly Financial Statements in Google Sheets Process Template

About Monthly Financial Statements

What Are Monthly Financial Statements?

Monthly financial statements are financial reports that provide a snapshot of a company's financial performance and position at a specific point in time, typically on a monthly basis. These statements are commonly used by management, investors, and other stakeholders to monitor and evaluate the company's financial health and make informed decisions.

Types of Monthly Financial Statements

The main types of monthly financial statements are as follows:

1. Balance Sheet: A statement that shows the company's assets, liabilities, and equity at a specific point in time. It provides a snapshot of the company's financial position and helps to identify the company's liquidity, solvency, and financial strength.
2. Income Statement: The company's revenues, expenses, and net income for the month. It is used to evaluate the company's profitability and performance over time.
3. Cash Flow Statement: The company's cash inflows and outflows. It helps to identify the company's ability to generate cash and manage cash resources.
4. Statement of Changes in Equity: The changes in equity. It helps to identify the company's sources and uses of equity.
5. Statement of Retained Earnings: A summary of the changes in retained earnings. It helps to identify the company's profitability over time and the changes in reserves.

We use balance sheets at our organization to provide monthly financial statements.

Using Google Sheets

How to Prepare a Monthly Financial Statement

This SOP provides instructions for preparing financial statements in Google Sheets for monthly reports.

1. Before starting, ensure that you have access to all necessary financial data, including income, expenses, and any other relevant information.
2. Create a new Google Sheets document and name it "Monthly Financial Statements."
3. Set up the columns of your spreadsheet to match the financial statements that you need to prepare. For example, if you are preparing an income statement, your columns might include "Revenue," "Cost of Goods Sold," and "Net Income."
4. Enter the appropriate data in each cell of the spreadsheet. Be sure to double-check your data for accuracy.
5. Use formulas to calculate the totals for each category of the financial statements. For example, to calculate net income, you might use the formula "=SUM(Revenue) - SUM(Cost of Goods Sold)."
6. Check your calculations for accuracy, and make any necessary adjustments.
7. Format the financial statements to make them easy to read and understand. This may involve adding color, changing font sizes, or using bold or italic text.
8. Save the completed financial statements to your Google Drive, and share them with relevant stakeholders.

By following these steps, you can efficiently and accurately prepare financial statements in Google Sheets for monthly reports.