Financial statement templates: everything you need to know (2023)

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If you work with a small team or a small business, it’s unlikely you don’t have professional accountants on staff. But if you aren’t keeping a close eye on your financial documents, you could get in trouble.

Investors, lenders, market analysts, and regulators look at a company’s financial statements to figure out if a company has enough financial stability to invest in — so getting it right is the key to healthy growth and investments.

The team here at monday.com has built a template that can help you get it right, even if you’re not a certified or trained accountant.

This article will break down what goes into a financial statement and why you should. Also, we will share our guide to financial statement templates and how to make the most of them.

Get the template

What is a financial statement template?

A financial statement is a business report that spells out all the organization’s business activities and financial performance.

Note: a financial statement template is a pre-built financial statement that can be fully customized to suit your unique business needs.

A template will include pre-labeled, adjustable rows and columns to make it 100% unique to your company’s financial information. Typically, a financial statement template will consist of at least the following fields (and more):

  • Gross sales
  • Net sales
  • Taxes
  • Cost of goods sold
  • Expenses
  • Gross profit
  • And more

Financial statement templates: everything you need to know (1)

Why use a financial statement template?

Solid financial statements are the backbone of any sound accounting department. They typically help:

  • track your financial situation and spot trends;
  • determine the company’s ability to repay its debts; and
  • analyze the company’s ability to generate cash.

Templates are the key to achieving standardization and ensuring that your financial statements are accurate.

(Video) Financial Statements Template - Getting Started

Since regulators and auditors will also use financial statements to (a) review how a business has generated cash and (b) investigate particular business transactions, standardization is crucial.

Staying on top of your company’s financial statements is incredibly time-consuming. But, unless you’ve got a team of full-time bookkeepers, chances are that’s time you don’t have to spare. This is where a financial statement template comes to the rescue.

By using a template, you’ll benefit from starting with a pre-tailored statement that includes all of the key columns and rows your statement will need. This makes getting started less daunting and a lot less time-consuming.

Perhaps the most significant benefit of financial statements is they help attract lenders and investors who may provide financing. Banks and potential investors will evaluate your company’s financial statements to better understand any earnings potential and your financial health.

Your company’s financial statements are critical to its growth and ability to meet regulatory standards. The right template can help you satisfy both investors and the IRS.

What are some examples of financial statements?

When it comes to financial statements, there are loads of examples worth exploring — fortunately, it’s easy to find pre-tailored templates for all of these statements too. To help get started, let’s break down a few of the most important financial statement templates you’ll want to use.

1. Balance sheet template

One of the most critical financial statements is a balance sheet — a snapshot financial report showing the company’s total assets and liabilities and shareholders’ equity.

Financial statement templates: everything you need to know (2)

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Pre-built balance sheet templates can be found within Microsoft Excel and downloadable templates for other apps and sites. Most of these are simple spreadsheets with pre-labeled columns where you copy/paste your specific financial data.

2. Income statement template

An income statement — often called a “profit and loss statement” or “statement of revenue and expense,” focuses on a company’s net income from sales and expenses over a specific period. Most income statement templates come with a range of pre-labeled rows naming potential income sources and expenses that you can amend or update as required.

Financial statement templates: everything you need to know (3)

(Video) Financial Statement Samples And Templates

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3. Cash flow statement template

This free cash flow statement template summarizes the cash inflows and cash equivalents* that go in and out of your company’s accounts. This ultimately helps show how well your company is managing its financial position.

*assets that could quickly sell for cash if you were ever desperate for money

Financial statement templates: everything you need to know (4)

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Cash flow statement templates are typically quite basic — just a few customizable rows and columns which signify various chunks of time.

3. Statement of changes in equity template

A company’s statement of changes in equity is also sometimes called a “statement of retained earnings.” This statement shows changes in your organization’s equity over a specific period. This document shows changes in the amount of money your business decides to keep rather than pay out to all of its shareholders.

Templates for this statement will typically include columns that cover preferred stock and common stock, paid-in capital, and retained earnings. But again, this should be fully customizable to suit your needs.

monday.com’s financial statement template

If you’re ready to take back control over your company’s finances, monday.com has the perfect financial statement template for your team.

With monday.com’s sleek new financial statement template, connect your organization’s financial statements and accounting workflows and manage all core financial processes using one system.

That means easy access to all company’s finances using a single and easy-to-understand dashboard. Manage all capital investments, make a financial plan to track company debts, and keep an eye on repayment schedules. You can even export it into a financial statement document you can share with investors and stakeholders.

Financial statement templates: everything you need to know (5)

(Video) How To Read And Understand Financial Statements As A Small Business

This template is also super helpful in managing ‌corporate audits. Set up rules and automations to keep the score of core financial statements like balance statements, income statements, and cash flow statements.

BONUS: This template comes with over 30 customizable column types, eight different data visualizations, more than 37 integrations with other apps, and unlimited automations.

Get the template

Related templates

Let’s break down some templates that are related to a financial statement template.

1. Expense tracking template

If you’re trying to shake the habit of “reactive financial management,” monday.com’s expense tracking template will do you wonders.

Financial statement templates: everything you need to know (6)

We designed the template to offer project managers a constant, real-time view of all aspects of their project or their broader organization’s financials. Plus, the template lets you skip ahead and figure out where your existing financial path will take you over the next few days, weeks, months, or even years.

2. Budget tracker template

monday.com’s budget tracker template is designed to help see a clear picture of how your organization or team is spending money and using credit. Additionally, the template helps create a financial model showing how those expenses will progress and affect your net profit and bottom line.

Financial statement templates: everything you need to know (7)

The template is 100% customizable — add tasks and action items and rearrange the dashboard based on your team’s priorities.

Get the template

FAQs about financial statement templates

Q: What is the best financial statement?

(Video) Financial Statements Template in Excel - How to Prepare Financial Statements

A: Want to see a snapshot of all core financial statements in one quick blast? The company annual report is the best option. This report is a financial statement combining all other core financial statements and tries to contextualize the findings of each report to help stakeholders get a bigger picture of how the company is performing.

This 3-in-1 statement includes your company’s balance sheet, income statement, and cash flow statement.

But that doesn’t mean it’s best for all use cases because each of the core financial statements does very different things.

Q: How do I make a financial statement?

A: It depends (of course). First, do the work to understand what financial statement you’re trying to create. Each financial statement looks at different elements of your company’s financials — ranging from net income or profit to expenses, equity, cash flow, etc.

Once you have settled on which type of financial statement, consider the essential elements.

For example, a cash flow statement might include the following columns: cash on hand, cash sales, loans, and other sources of cash. Also, create columns that represent a period. For example, this could be one column per week or one column representing an entire month. From there, enter all relevant financial data.

Because getting started can be a little daunting, many business owners decide to start out using a financial statement template and customize it accordingly.

Q: How do you make financial statements in Excel?

A: Creating financial statements in Excel is pretty simple, and the templates are free. However, Excel templates are sometimes more suitable for personal financial statements. Be careful1

Fire up Excel and type which financial statement you need from the template search bar. From there, it’s simply a matter of selecting the template you want and inputting all of your financial data.

The trick is then marrying those offline templates up with existing accounting software for a seamless reporting process. Our financial statement template streamlines this process thanks to monday.com’s countless robust integrations.

(Video) Prepare your company financial statement using Excel [TEMPLATE FILE AVAILABLE]....

FAQs

What 7 items must financial statements consist of? ›

The Financial Accounting Standards Board (FASB) has defined the following elements of financial statements of business enterprises: assets, liabilities, equity, revenues, expenses, gains, losses, investment by owners, distribution to owners, and comprehensive income.

What are the 5 basic financial statements? ›

The 5 types of financial statements you need to know
  • Income statement. Arguably the most important. ...
  • Cash flow statement. ...
  • Balance sheet. ...
  • Note to Financial Statements. ...
  • Statement of change in equity.

What are the 7 financial documents in order? ›

Even better, these documents are available with your business's bookkeeping software, or from your bookkeeper or certified public accountant (CPA).
  • Profit and loss (P&L) statement. ...
  • Cash flow statement. ...
  • Balance sheet. ...
  • Tax returns. ...
  • Accounts receivable/accounts payable (aka, “aging reports”)

What are the 3 key financial documents? ›

The income statement, balance sheet, and statement of cash flows are required financial statements. These three statements are informative tools that traders can use to analyze a company's financial strength and provide a quick picture of a company's financial health and underlying value.

What are the four 4 main financial documents in accounting? ›

They are: (1) balance sheets; (2) income statements; (3) cash flow statements; and (4) statements of shareholders' equity.

How do you prepare financial statements for beginners? ›

How to Prepare Financial Statements
  1. Step 1: Verify Receipt of Supplier Invoices. ...
  2. Step 2: Verify Issuance of Customer Invoices. ...
  3. Step 3: Accrue Unpaid Wages. ...
  4. Step 4: Calculate Depreciation. ...
  5. Step 5: Value Inventory. ...
  6. Step 6: Reconcile Bank Accounts. ...
  7. Step 7: Post Account Balances. ...
  8. Step 8: Review Accounts.
3 Apr 2022

What are the 9 steps in preparing financial statements? ›

Here are the nine steps in the accounting cycle process:
  1. Identify all business transactions. ...
  2. Record transactions. ...
  3. Resolve anomalies. ...
  4. Post to a general ledger. ...
  5. Calculate your unadjusted trial balance. ...
  6. Resolve miscalculations. ...
  7. Consider extenuating circumstances. ...
  8. Create a financial statement.
23 Jul 2021

What are the 10 elements of financial statement? ›

The 10 elements are: (1) assets, (2) liabilities, (3) equity, (4) investments by owners, (5) distributions to owners, (6) revenues, (7) expenses, (8) gains, (9) losses, and (10) comprehensive income.

What are the 10 Elements of financial statements elaborate each? ›

Ans. The elements of a financial statement are Assets, Liabilities, Equity, Investments by owners, Distributions to owners, Revenues, Expenses, Gains, Losses and Comprehensive Income Statements.

What is the most important number in financial statement? ›

The 9 Most Important Financial Numbers Explained
  • Cash Flow. It's number one for a reason. ...
  • Net Income. Also known as net profit or net earnings, your net income is quite related to your cash flow. ...
  • Profit and Loss. ...
  • Cost of Revenue. ...
  • Gross Margin. ...
  • Total Inventory. ...
  • Days Sales Outstanding. ...
  • The Quick Ratio.
5 Dec 2016

What are 10 source documents in accounting? ›

The most common documents are:
  • Checks.
  • Invoices.
  • Receipts.
  • Credit memos.
  • Employee time cards.
  • Deposit slips.
  • Purchase orders.
2 Jan 2021

What are the 4 financial statements required by GAAP? ›

The four main financial statements include: balance sheets, income statements, cash flow statements and statements of shareholders' equity. These four financial statements are considered common accounting principles as outlined by GAAP.

What are the 4 parts of a balance sheet? ›

Balance Sheet Example

As you will see, it starts with current assets, then non-current assets, and total assets. Below that are liabilities and stockholders' equity, which includes current liabilities, non-current liabilities, and finally shareholders' equity.

What are the 5 documents used to record transactions? ›

Transaction documents include:
  • Quotations.
  • Customer Orders.
  • Invoices.
  • Credit Notes.
  • Supplier Orders.
  • Contracts.

What are the 4 types of source documents? ›

Types of Accounting Source Documents
  • Purchase Orders. In order for businesses to purchase inventory, they need to complete an order form, also known as a purchase order. ...
  • Delivery Dockets. ...
  • Sales and Purchase Invoices. ...
  • Credit and Debit Notes. ...
  • Checks. ...
  • Receipts.
19 Mar 2021

What is more important P&L or balance sheet? ›

A P&L is arguably the most important financial sheet your small business has. It shows the company's net income over a period of time, which can be monthly, quarterly, or yearly.

What are GAAP financial statements? ›

Generally Accepted Accounting Principles (GAAP or US GAAP) are a collection of commonly-followed accounting rules and standards for financial reporting.

What are the two basics of financial statements? ›

A set of financial statements includes two essential statements: The balance sheet and the income statement.

What are the three 3 key information required in the financial section? ›

The balance sheet, income statement, and cash flow statement each offer unique details with information that is all interconnected. Together the three statements give a comprehensive portrayal of the company's operating activities.

What is the #1 rule in accounting? ›

1. Debit the receiver and credit the giver. The rule of debiting the receiver and crediting the giver comes into play with personal accounts. A personal account is a general ledger account pertaining to individuals or organizations. If you receive something, debit the account.

What are the 7 steps of accounting? ›

The seven steps in the accounting cycle are as follows:
  • Identifying and Analysing Business Transactions.
  • Posting Transactions in Journals.
  • Posting from Journal to Ledger.
  • Recording adjusting entries.
  • Preparing the adjusted trial balance.
  • Preparing financial statements.
  • Post-Closing Trial Balance.

What is the easiest way to understand financial accounting? ›

How to Learn Financial Accounting
  1. Learn How to Read and Analyze Financial Statements. ...
  2. Select a Learning Method. ...
  3. Dedicate Time to Your Learning. ...
  4. Focus on Real-World Application. ...
  5. Network with Other Accounting Professionals.
1 Jul 2020

Can I prepare my own financial statements? ›

But with the help of computer software, you may be able to prepare your own financial statements. If you need to prepare financial statements for a third party, such as a banker, sometimes the third party may request that the financial statements be prepared by a professional accountant or certified public accountant.

What is the easiest financial statement to prepare? ›

Perhaps the most useful financial statement, and easiest to understand, is the income statement. The income statement has a separate section for both revenue and expenses, including sales, cost of goods sold, operating expenses, and net profit.

What is the 8 step accounting cycle? ›

The eight steps of the accounting cycle are as follows: identifying transactions, recording transactions in a journal, posting, the unadjusted trial balance, the worksheet, adjusting journal entries, financial statements, and closing the books.

What are the 7 steps of financial planning? ›

7 Steps of Financial Planning
  • Define your short- and long-term goals. ...
  • Audit your current income, savings, and long-term savings and investing plan. ...
  • Address shortfalls/adjust goals. ...
  • Account for multiple future scenarios. ...
  • Develop a comprehensive financial plan. ...
  • Implement and monitor that plan.
21 Dec 2021

What are the 6 financial documents? ›

Six most useful financial documents for small businesses
  • Income statement.
  • Cash flow statement.
  • Balance sheet.
  • Accounts receivable aging report.
  • Business plan.
  • Budget report.

What are the 6 financial assets? ›

Financial Assets
  • Cash.
  • Checking or savings accounts.
  • Stocks.
  • Mutual funds.
  • Bonds.
  • Certificates of deposit (CDs)
16 Nov 2021

Is cash an asset or equity? ›

In short, yes—cash is a current asset and is the first line-item on a company's balance sheet. Cash is the most liquid type of asset.

What are the 8 general features of financial statements? ›

IAS 1 explains the general features of financial statements, such as fair presentation and compliance with IFRS, going concern, accrual basis of accounting, materiality and aggregation, offsetting, frequency of reporting, comparative information and consistency of presentation.

What are the 8 components of profit and loss statement? ›

Structure of the Profit and Loss Statement

Revenue (or Sales) Cost of Goods Sold (or Cost of Sales) Selling, General & Administrative (SG&A) Expenses. Marketing and Advertising.

What are the 5 elements of balance sheet? ›

The main elements of financial statements are as follows:
  • Assets. These are items of economic benefit that are expected to yield benefits in future periods. ...
  • Liabilities. These are legally binding obligations payable to another entity or individual. ...
  • Equity. ...
  • Revenue. ...
  • Expenses.
2 Apr 2022

What is the least important financial statement? ›

The cash flow statement is the least important financial statement but is also the most transparent. The cash flow statement is broken down into three categories: Operating activities, investment activities, and financing activities.

What is the single most important item in the financial statements? ›

The most important financial statement for the majority of users is likely to be the income statement, since it reveals the ability of a business to generate a profit. Also, the information listed on the income statement is mostly in relatively current dollars, and so represents a reasonable degree of accuracy.

What is the T account? ›

A T-account is an informal term for a set of financial records that use double-entry bookkeeping. It is called a T-account because the bookkeeping entries are laid out in a way that resembles a T-shape. The account title appears just above the T.

What are the 7 types of documents? ›

The 7 types of documents you should never throw away!
  • WORK DOCUMENTS. Tax forms, vacation time, proof of educational leave, etc. ...
  • VEHICLE DOCUMENTS. ...
  • ACADEMIC DOCUMENTS. ...
  • MEDICAL DOCUMENTS. ...
  • HOUSING INFORMATION. ...
  • NATIONAL IDENTITY DOCUMENTS.

What are 3 types of documents? ›

5 types of document files
  • Portable document format (PDF) A PDF file is a common file type in many work environments. ...
  • Word document (DOC and DOCX) ...
  • Hypertext markup language (HTML and HTM) ...
  • Microsoft excel spreadsheet file (XLS and XLSX) ...
  • Text file (TXT)

Which financial statements are mandatory? ›

The following three major financial statements are required under GAAP: The income statement. The balance sheet. The cash flow statement.

What are the two types of asset? ›

Most of the time, there are only two types of assets on a balance sheet: current assets and fixed assets.

What are the 2 types of balance sheet? ›

Standard accounting conventions present the balance sheet in one of two formats: the account form (horizontal presentation) and the report form (vertical presentation).

What are the 3 types of balance sheets? ›

Stakeholders and financial analysts read and analyze financial statements, including balance sheets, income statements, and cash flow statements.
...
  • Comparative Balance Sheets.
  • Vertical Balance Sheets.
  • Horizontal Balance Sheets.

What are the seven 7 components within a financial plan? ›

What makes up a financial plan? Your financial plan should include seven key elements (which we will cover in more detail below): your profit and loss statement, operating income, cash flow statement, balance sheet, revenue projection, personnel plan, as well as your business ratios and break-even analysis.

What are the 6 components of a complete set of financial statements? ›

Examples of the Elements of Financial Statements
  • Assets. These are items of economic benefit that are expected to yield benefits in future periods. ...
  • Liabilities. These are legally binding obligations payable to another entity or individual. ...
  • Equity. ...
  • Revenue. ...
  • Expenses.
2 Apr 2022

What should financial statements include? ›

Financial statements are a collection of summary-level reports about an organization's financial results, financial position, and cash flows. They include the income statement, balance sheet, and statement of cash flows.

What are the 4 pillars of financial planning? ›

Four Pillars of Financial Planning
  • Managing Cash Flow and Financial Resources. This critical first pillar focuses on making sure you and your loved ones are provided for. ...
  • Accumulating Wealth. ...
  • Managing Income Taxes. ...
  • Planning for Retirement.

What are the 5 stages of financial planning? ›

Financial Planning Process
  • 1) Identify your Financial Situation. ...
  • 2) Determine Financial Goals. ...
  • 3) Identify Alternatives for Investment. ...
  • 4) Evaluate Alternatives. ...
  • 5) Put Together a Financial Plan and Implement. ...
  • 6) Review, Re-evaluate and Monitor The Plan.

What are the 5 key components of financial planning? ›

There are five essential components of a financial plan such as Insurance planning, Retirement Planning, Investment Planning, Tax Planning and Estate Planning.

What order should the 4 financial statements be prepared? ›

Financial statements are compiled in a specific order because information from one statement carries over to the next statement. The trial balance is the first step in the process, followed by the adjusted trial balance, the income statement, the balance sheet and the statement of owner's equity.

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