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Budgeting!

Discussion in 'Business Fundamentals' started by born2farm, Mar 1, 2012.

  1. born2farm

    born2farm 2000 Club Member
    Messages: 2,310

    As I begin to prepare for next year some questions with budgeting come up. This question pertains to mostly snow only companies but maybe some of you other guys can help out.

    The issue I am having, or maybe I am just over thinking it is do you set your budget based on calendar year or season year. (ex. Jan 1st-December 31st OR Nov 15th-April 1st).

    I keep track of all my expenses based on the seasons. Would you guys consider this the right way to do it? Of course then at tax season I have to re-figure everything on a calendar year set up. Maybe I am just over thinking this process but maybe you guys can set me straight.Thumbs Up
     
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    The way towns have to do is,they have to budget for the calendar year. So they have to budget for the first part of the year and the last part,but the season runs as you know Nov-Apr. So if you have past records you could figure it out that way.
     
  3. Rat_Power_78

    Rat_Power_78 Senior Member
    Messages: 176

    I think you are answering your own question here. I know I wouldnt want to mess with all that twice, even though I still think you have to think of it both ways at least on some level. Its hard to think of december as being part of the previous year when it feels like a season should be the year. Unfortunately the IRS doesnt have a separate tax year for guys that plow.
     
  4. born2farm

    born2farm 2000 Club Member
    Messages: 2,310

    Ya I guess I will just do every thing based on the calendar year. It wouldnt be so bad, but the books are pretty much empty from April to October, so it makes everything a bit more confusing. Thanks for the help guys.
     
  5. csi.northcoast

    csi.northcoast Senior Member
    Messages: 320

    i do mine by the year, you are still going to have expenses all year , insurance, maintenance etc. like you said by doing it by the year you do not have to do it twice
     
  6. dsteinfe

    dsteinfe Junior Member
    from Canada
    Messages: 2

    I am trying to find out what kind of expenses i should be looking at. Can anyone break down a typical season's expenses. Including repairs, fuel, time, salt, other supplies?

    I would really appreciate this as it will help me estimate what costs i have to plan for in my first plowing season.