Finance Dave
Thinks s/he gets paid by the post
- Joined
- Mar 29, 2007
- Messages
- 1,864
We do ours in about April each year. Makes sense to wait for the tax return to be completed. I have two LLCs, so we go out for a nice dinner and have an hour-long discussion about the businesses while we go through the numbers...I write up minutes and we call it a "Board" meeting.
At the same time we compare our actual spending from prior year to our budget, and make any changes we need to. Just did this for last year and we're seeing a trend...we have an "unusual" expense of $5,000-$8,000 every year for the past 4 years...so we decided to add a line item for these "unplanned expense" items going forward. We have the room in the budget, so it's fine...just nice to know it's not "unplanned" anymore. One year it was my office renovation, one year it was a new engine in my show car, one year it was a combination of new skylights and re-stain our privacy fence.
So what time of year do you do your planning? Or do you do it more frequently like monthly or quarterly? We set ours up annually, then I do a "back of the envelope" calculation quarterly to make sure we have enough liquidity.
At the same time we compare our actual spending from prior year to our budget, and make any changes we need to. Just did this for last year and we're seeing a trend...we have an "unusual" expense of $5,000-$8,000 every year for the past 4 years...so we decided to add a line item for these "unplanned expense" items going forward. We have the room in the budget, so it's fine...just nice to know it's not "unplanned" anymore. One year it was my office renovation, one year it was a new engine in my show car, one year it was a combination of new skylights and re-stain our privacy fence.
So what time of year do you do your planning? Or do you do it more frequently like monthly or quarterly? We set ours up annually, then I do a "back of the envelope" calculation quarterly to make sure we have enough liquidity.