Mastering Bank Statement Analysis with Pivot Tables

Mastering Bank Statement Analysis with Pivot Tables

Table of Contents:

1. Introduction
2. Converting the Bank Statement to an Excel Table
3. Creating a Summary Report with Pivot Tables
4. Adding Debits and Credits Together
   • Using a Calculated Field
   • Using a Calculated Column
5. Removing Unnecessary Fields from the Pivot Table
6. Tying Out Numbers with the Amount Column
7. Using Filters to Exclude Items in the Pivot Table
8. The Advantages of the Calculated Column Technique
9. The Advantages of the Calculated Field Technique
10. Conclusion

Analyzing Bank Statements with Pivot Tables Introduction: Analyzing bank statements can be a tedious and time-consuming task. However, with Excel and pivot tables, you can easily create summary reports and gain valuable insights from your bank statement data. In this article, we will explore the steps to convert a bank statement into an Excel table, create a summary report using pivot tables, and add debits and credits together to get a total amount. We will also discuss the advantages of using calculated fields and calculated columns in pivot tables and provide tips on how to tie out numbers and filter data in a pivot table.

1. Converting the Bank Statement to an Excel Table: Before we can start analyzing a bank statement using pivot tables, it's essential to convert the bank statement into an Excel table. This conversion allows for easy updating of the source data range without modifying the pivot table. By selecting any cell within the range, we can go to the Home tab and choose the "Format as Table" option. This step enables us to quickly add or remove columns and rows without worrying about adjusting the source data range.

2. Creating a Summary Report with Pivot Tables: Once we have converted the bank statement into an Excel table, we can proceed to create a summary report using pivot tables. By clicking the "PivotTable" button and selecting a new worksheet, we can build a pivot table that summarizes the data in our table. By placing the category field in the rows area and the debit and credit fields in the values area, we can obtain the sum of the debit and credit amounts for each category.

3. Adding Debits and Credits Together: One common question that arises when analyzing bank statements is how to add the debits and credits together to get a total amount. In this article, we will explore two different ways to achieve this: using a calculated field and using a calculated column.

• Using a Calculated Field: By selecting any cell within the pivot table, we can go to the PivotTable Analyze or Options tab and choose "Calculated Field" from the Fields, Items & Sets dropdown. This feature allows us to create a calculated field with a formula that adds the debit and credit fields together. Once the calculated field is added to the pivot table, we can see the total debits and credits as a separate column.

• Using a Calculated Column: Alternatively, we can add a calculated column directly to the source data range of our Excel table. By entering a formula that adds the debit and credit amounts together, we can obtain the total amount in a new column. This calculated column can then be added to the pivot table as a value field, providing the same result as the calculated field technique.

4. Removing Unnecessary Fields from the Pivot Table: In some cases, it may be necessary to remove unnecessary fields from the pivot table. This step allows us to focus on specific aspects of the data and obtain a clearer summary report. By removing the sum of debit and sum of credit fields, we can streamline the pivot table and display only the essential information.

5. Tying Out Numbers with the Amount Column: To ensure the accuracy of our analysis, it is crucial to tie out numbers in the pivot table. This process involves cross-checking the numbers from the pivot table with the original data. By adding the amount column to the pivot table, we can easily compare and validate the total amount.

6. Using Filters to Exclude Items in the Pivot Table: The flexibility of pivot tables allows us to use filters to exclude certain items from the summary report. By adding category and date fields to the pivot table, we can group the data by specific criteria and obtain a different view and summary report. Filtering can be useful when analyzing specific time periods or excluding certain vendors or expenses.

7. The Advantages of the Calculated Column Technique: The calculated column technique offers several advantages in bank statement analysis. By adding a calculated column to the source data range, we can easily tie out numbers and check the accuracy of our pivot table. This technique is particularly useful when working with filtered data or when additional calculations are required on the original data.

8. The Advantages of the Calculated Field Technique: On the other hand, the calculated field technique provides a simple and efficient way to add a new field to the pivot table. By using a calculated field, we can obtain the total debits and credits without the need for creating a separate column in the source data range. This technique offers flexibility and ease of use in creating summary reports.

9. Conclusion: Analyzing bank statements with pivot tables can significantly simplify the process of extracting insights and summarizing data. By converting the bank statement into an Excel table, creating a summary report with pivot tables, and adding debits and credits together, we can gain valuable insights into our financial transactions. Whether using the calculated field technique or the calculated column technique, pivot tables provide flexibility and efficiency in analyzing bank statements.