Skip to main content

Free Accounting and Bookkeeping Excel Spreadsheet Template

Budgeting Tips for Easier Bookkeeping

Credits: Personal Income, Dividends, and More

Credits are considered the cash flow that comes into your home or business. The funds usually come in the form of employment income. However, there are several types of credits including dividends from investments, child support or alimony payments, windfalls and gifts, extra income by way of a second job, selling personal items, or inheritances.

Add up your credits so you know what you are able to save and spend in a single month. As a general rule, if you come across a windfall like a winning lottery ticket, or a cash gift, save one third, pay extra on your debts with one third, and feel free to spend the final third on something special for yourself or a family member.

Debits: Household Bills, Debt, Spending, and More

Your debits are much more than you realize. Your living expenses and debts are not the only thing you need money for. It’s important to budget items such as annual vehicle registration, new or replacement work attire, vehicle maintenance, and entertainment costs. Add up and prioritize your debits.

  • Pay yourself first. This means to deposit the allotted amount of income into your savings account, investment account, or put the cash under your mattress.
  • Pay your friends and family if you have a payment arrangement with them. Personal loans and mortgage holding are examples of reasons you would need to make payments to them.
  • Your household bills are your next priority. Your rent or mortgage is usually the largest expense, and above all you need a place to live. If at all possible, occasionally make an extra mortgage payment to reduce the amount of interest you will be paying in the end. Make sure there is no pre-payment penalties before you do so.
  • Food is a necessity, so obviously that expense is a high priority item.
  • If a car payment is necessary to keep yourself accessible to transportation, by all means, pay that bill next. In most cases, you need transportation to get to and from work.
  • Insurance ownership is required by law in most states, so be sure there are funds for that expense.
  • Believe it or not, things like electricity, internet capability, cable TV, and cell phones are luxuries. Under certain circumstances, as in medical concerns, electricity and cell phones may need to be moved up on the list of priorities.
  • Other debts, loans, and credit cards should be last on your list of priorities. However the wise person will stay out of debt as much as possible. When in debt, try to pay as much as you can, and always pay at least twice the minimum payment to reduce the amount of interest you will end up paying in the end.

Free Accounting Template

This Balance Sheet was done in Excel.  Each month, add a new tab and change as needed.  I recommend you open a brand new spreadsheet for each year.

This Balance Sheet was done in Excel. Each month, add a new tab and change as needed. I recommend you open a brand new spreadsheet for each year.

Additional Information:

  • How to Find a Job in Accounting in the UK
    How to Find accountancy jobs in the UK looks at which businesses need accountants, how to get an accountancy job straight from school, as a graduate or as an adult changing career. It looks at where to search for advertised jobs such as recruitment a
  • How to Overcome Limitations
    One person never achieves her dreams another achieves his in spite of huge odds. We can learn from both these people how to overcome limitation and improve quality of life.
  • The Purpose of a Personal Budget
    No matter if rich or poor,it's important to have a personal budget and set financial goals. Having a good knowledge of your financial situation and taking the time to prioritize what you want to achieve in the short, medium and long term can benefit
  • How to Invest in Eco-Friendly Stocks
    Do you want to invest in Green Companies that support the environment? Here's a guide on what to look for and how to choose an investment option.
  • How to Get Money for Business Start Ups
    Do you need funding to start your own business? Read these tips on getting SBA Loans, finding Angel Funding and getting financing for your business.

How to Balance Your Budget and Save

The key to balancing a budget is to reduce unnecessary spending of the credits in order to be sure there are enough funds to pay the debits. It is really quite amazing the amount of opportunities you have to cut spending for the purpose of saving money.

Scroll to Continue

Check into insurance discounts. Some companies give multiple car or policy discounts. Some companies give Military discounts. Some companies give discounts to Automobile Association of America (AAA) members. Many companies also give discounts for safety equipment on vehicles. You may want to reduce your insurance premiums by increasing your deductible or lower your coverage if need be.

Cutting back on Cable TV is another way to reduce spending. Is it really necessary to have a package with hundreds of channels?

Groceries can be much more inexpensive if you watch the sales each store has in their weekly flyers. Coupons are a great way to save, as well. There are several coupon apps for smart phones and many online websites that offer printable coupons. Buying store brands in many cases will save you a bundle compared to always buying name brand items. If possible, buy in bulk when you find a great sale on non-perishable items.

Save on your electric bill in the summer by setting your thermostat just above your completely comfortable temperature and utilize fans for circulation. In the winter, wear socks, sweat pants, and long sleeves to stay warm. Keep lots of blankets handy as well. Be sure your home has great weather stripping around all windows and doors so that the cool or warm air doesn’t escape.

Subscriptions can be cancelled also. Small amounts add up, so if you aren’t enjoying that monthly magazine, cancel the subscription. There are many credit card companies that offer great “clubs” to be in for a small fee. Eliminate those small fees and save a bundle.

Thank you so much for reading my hub, and I hope the read was helpful and entertaining. Please leave a comment, suggestion, or constructive criticism in the comments section below. I would greatly appreciate your input.

"Be kind to one another" ~ Ellen

God Bless You ~ Margaret Sullivan


Marcy Goodfleisch from Planet Earth on June 23, 2012:

Your points about cutting back on some extras are so true - I was able to reduce my cellphone bill by nearly half when I cut out things I didn't need or use that often. Great information and tips! Voted up and up!

Dianna Mendez on June 16, 2012:

All good and so useful information on budgeting and accounting spreadsheets. I could use this as a refresher course.

Related Articles