how to combine income and expenses in google sheets
IN SUMMARY
Google Sheets provides a powerful and flexible way to track your income and expenses. By creating separate sheets for income, fixed expenses, and other expenses, and then using the QUERY function to combine and sort the data, you can create a comprehensive budget tracker with a running balance.
Setting up the Sheets
Each sheet should have columns for date, description, category, income, and debits. Use drop-down lists for categories to maintain consistency. Format the sheets with alternating colors and currency formatting for a clean look.
In the income sheet, enter your income sources and amounts. In the fixed expenses sheet, add recurring expenses like rent, utilities, and subscriptions. The other expenses sheet is for non-recurring expenses like dining out or unexpected repairs.
In a separate sheet, list all the categories you want to track. This will be used to create drop-down lists in the other sheets, ensuring consistency and making data entry easier.
Combining the Data
In a new sheet (e.g., 'Final Tracker'), use the QUERY function to combine data from the income, fixed expenses, and other expenses sheets. The QUERY function allows you to select specific columns, filter data, and sort the results.
In the 'Final Tracker' sheet, add a column for running balance. Use a formula to calculate the balance by adding income and subtracting debits from the previous row's balance. This will give you a clear picture of your financial situation at any given point.
Apply conditional formatting to the running balance column to highlight when the balance falls below a certain threshold (e.g., $500). This will help you identify potential issues and make adjustments to your budget.
Maintaining and Updating the Budget
You can easily add future expenses or income to the 'Other Expenses' or 'Income' sheets to see how they will impact your running balance. This allows you to plan for major purchases or events and make informed decisions.
As transactions occur, mark them as complete in the respective sheets using checkboxes or another method. This will help you keep track of what has been accounted for and what is still pending.
If an expense or income amount differs from what you initially budgeted, you can easily adjust the amount in the respective sheet, and the running balance will update accordingly, keeping your budget accurate and up-to-date.