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5. Calculate Overall Expenses and Profit

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In addition to your total business expenses and profit, it’s also important to determine the costs for each individual product.

This information helps keep your business on track.

In this video, you will use a summary table to calculate your total expenses To start, insert four rows at the top of your spreadsheet.

Label the rows Total Out-of-Pocket Costs Total Gross Sales, and Total Profit Adjust the width of the column, so the headings fit on one line.

To find the total estimated cost for each of these items, use the SUM function.

A function is a pre-made formula that you can insert into a spreadsheet.

The SUM function adds a range of numbers to find your business’s total costs, sales, and profits.

To start, click the first cell in “Total Out-of-Pocket Costs”.

Then, type an equals sign.

To insert the SUM function, type in “S” “U” “M.” and select it from the menu.

Next, select the entire Out-of-Pocket costs column.

The cells you highlight appear between the parentheses in the function.

Edit the formula to begin at the row of listed items.

In this example, the first item begins in column H, row 6, so the cell reference is H6.

Press enter.

The cell now contains the total estimated costs for your business.

If you add more line items later, the formula will also work for those.

Use the SUM function again to calculate Gross Sales.

Type the formula into the cell next to Total Gross Sales.

Then, repeat the steps to calculate Total Profit by adding the amounts in the Profit column.

Imagine how long it would take you to calculate all those numbers and percentages without the SUM tool.

Every time a number changed, you would have to redo all the calculations.

Using a spreadsheet saves time and effort and reduces the chance of making a mistake.

Plus, the functions in your spreadsheet enable you to see the financial health of your business.

The summary table is an important tool and should be easy to see.

If it’s not bold already, change the font style.

Now, it’s your turn: Insert and label four rows at the top of your spreadsheet for Total Out-of-Pocket Costs, Total Gross Sales, and Total Profit.

Create a summary table for these items.

And use the SUM function to find totals for each new calculation.

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Instructions
  1. Insert and label four rows at the top of your spreadsheet for Total Out-of-Pocket Costs, Total Gross Sales, and Total Profit.
  2. Create a summary table for these items.
  3. Use the SUM function to find the totals for each new calculation.