Financial Statement Analysis of Income and Expenses

Dear All,

Good day and hope you are doing well,

I'm Mohammed Sameer, 

Today I am excited to share with you how we can implement Financial Analysis on income and expenses. I have created this project with the intention of improving analytical skills and problem-solving abilities while also gaining insights that could help a company make better decisions in the future.

To make my project unique, I chose to focus on the topic of net income and expenses statement analysis of a company. My objective was to evaluate and analyze the net income and expenses of a company to determine the total net profit or loss and creating monthly variances by departments.

As part of this project, I am naming it my own company called JK Company. In addition, I researched and added services required for a IT company, such as Artificial Intelligence, Cybersecurity, Data Management & Analytics, Internet Software & Services, Consumer & Retail, Hardware, and Travel.

CLEANING THE DATA

To evaluate the monthly data, I used Microsoft Excel to identify duplicates, missing values, and create new columns. Formatted the data with proper functions, date functions and Vlookup and sum functions.

ANALYSING THE FINANCIAL STATEMENT OF INCOME AND EXPENSE

In order to find out the statement of Net Profit/Loss,

We have calculated by, Total Income - Total Expense = Net total profit/ Loss

The categories in my Excel data include Gender, Month, Age, Region, Income, Expenses, Industry, Gross profit/ Loss and Net Value of Profit/Loss.

April month - financial dashboard

KEY INSIGHTS

- Identifying that April month achieved highest income of 2,50,561.

- Focus on improving the Sept month as net loss occured amount of 17,788.

- As for Gender category, Female employees outnumbered male employees by increasing total net profit of amount 1,26,254.

- Implement new strategical control on travel sector as expenses grossed highest amount of 3,71,656 over the income.

- Statement of total income and expenses obtained Net profit amount 1,93,218.

Pivot table calculation of Financial statement

Pivot summary of department variance

Through this article, I am able to showcase how to analyze financial data and present findings that could provide insights for making better business decisions. Thank you for taking your time to learn about my project.

Dashboard of financial statement analysis on Income and Expense

Also wanted to share with you that it is my own created data and not pertaining to any organisations or any companies.

In my next article, we will see more innovative and interesting learnings that will useful and productive to work.

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Thank you for reading.

Have a Great Day !