# How to Calculate Total Expenses: The Ultimate Guide

How to calculate total expenses? You need to add up all of the money that you have spent in a given period. This can be done by looking at your bank statements, credit card statements, and receipts.

In this guide, we’ll show you how to calculate total expenses in just a few simple steps. So whether you’re looking to get a better handle on your finances or simply want to be more prepared for the future, read on and learn everything you need to know about calculating your total expenses!

## How to Calculate Total Expenses

A balance sheet is a financial statement that lists a company’s assets, liabilities, and equity.

Assets include cash on hand, investments in other companies, equipment and property, and receivables.

Liabilities are any outstanding bills, taxes, and any debt the company owes.

Equity is the money invested by shareholders.

The “liabilities” section of the company’s financial statement is found on the bottom half of the document.

The first line of the “Accounts Payable and Accrued Expenses” section shows how much money the company owes to creditors and suppliers. This money must be spent very soon.

To figure out how much money the company should spend within the period, you should look at the “total current liabilities” line.

While not all expenses under “total current liabilities” are direct business expenses (such as taxes), it does give you a general idea of how much money is going out of the business.

If you are trying to determine how much the company is spending on its operations, the Cash Flow Statement can help you. The Cash Flow Statement breaks down how the company’s money is spent, separating its operating expenses, investments, and financing activities. This can help give you an idea of whether or not the operations are financially sound.

## Calculate Total Expenses From Total Revenue and Owner’s Equity

To locate companies’ quarterly reports, you can search the Investor Relations section of their websites or you can use the Securities and Exchange Commission (SEC) Edgar search. Once you have found the report, you’ll want to find the Income Statements and Balance Sheets.

If you’re trying to track down your beginning equity, you may want to look at previous reports from previous months.

From the balance sheet, we can determine the amount of starting capital, the total amount of income, the dividend payments, and the total number of outstanding shares of the company.

Suppose the clothing brand, Black Royale, had \$1.5 million in starting capital, \$3 million in ending equity, \$500,000 in dividend payments, and issue \$750,000 in additional stock.

Calculate the company’s net income.

​Net Income = Ending Equity – Beginning Equity​

Net income = ​(\$3,000,000+\$500,000) – (\$1,500,000+\$750,000),​ which is equal to a net income of ​\$1.25 million​.

To calculate the total revenue of the company, you can either review the income statement or multiply the product units sold by the price of each unit.

Based on the revenue numbers on the company’s financial statements, the company made \$4 million in revenue selling 20,000 garments at \$200 each.

Determine the total expenses based on the formula: ​

Total Expenses = Total Revenue – Net Income​

To calculate the total expenses of Black Royale, that would be \$4 million – \$1.25 million, which equals \$2.75 million. This is the value of all the expenses incurred by the company during the specified accounting period.

## How to Create a Formula for Income or Expenses in Excel

After you’ve collected all of your financial information, you can organize it in an Excel spreadsheet where all income goes into one column and all expenses in another column.

Then, you can use the “sum” function in excel to total up all of your income and expenses.

1. Open your income and expenses Excel worksheet.

2. Select an empty cell beneath the last item in your “income” column.

3. Type “Total Income” in this cell, then press the “Enter” key.

4. Select the cell directly beneath the “Total Income” label.

5. Type “=SUM(” into this empty cell.

6. Select the first entry in your “Income” column, press the “Shift” key, select the last income item in that column, then press the “Enter” key to calculate your income total.

7. Select an empty cell beneath the last item in your “Expenses” column.

8. Type “Total Expenses” in this cell, then press the “Enter” key.

9. Select the cell directly beneath the “Total Expenses” label.

10. Type “=SUM(” into the empty cell.

11. Select the first entry in your “Expenses” column, press and hold the “Shift” key, select the last expense item in the same column, then press the “Enter” key to calculate your total expenses.

Operating income and income from operations are not the same thing.

Income from operations is a measure of a company’s profitability. Operating income is a measure of how much cash a company generates from its normal business activities.

To calculate operating expenses in Excel, you will need to use the SUM function. To make an income statement using Excel, you will need to use the INCOME function.

Quickbooks does not have a specific function for tracking reimbursed expenses, but you can track them by creating a separate account for them.

## Conclusion

How to calculate total expenses doesn’t have to be a daunting task. By following the simple steps outlined in this guide, you can easily get a better understanding of where your money is going each month. So take some time to sit down and calculate your total expenses today – it could make all the difference in reaching your financial goals!

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