Plan Annual Business Bills with a Reserve Schedule

Give each bill its own funding row

Use last year's statements to find annual software, insurance, memberships, registrations and servicing. Record the actual renewal date, current quote or estimate, existing reserve and planned contribution dates. Check whether the bill is still needed and whether cancellation or changes require notice.

This is a schedule for known costs. Keep it separate from the contingency buffer for uncertain events. An insurance renewal shouldn't consume money you thought was reserved for a breakdown.

Calculate the amount before the deadline

Use (expected bill − existing reserve) ÷ remaining contributions before payment. If a $2,400 bill is due after six monthly contribution dates and nothing is saved, the contribution is $400, not $200. If there are no contribution dates left, the full unfunded amount is due now.

Match the cash basis: use total amounts expected to leave the bank, including any applicable GST or charges. Forecast a tax refund separately only when its amount and timing are supportable.

Assumptions: AUD total bank amounts. January opening reserve $1,200 funds insurance due in June. Add $300 before each month-end payment. Pay $2,400 insurance in June and $1,200 software in December. Contributions come from cash the operating forecast can afford.

Month	Opening reserve	Contribution	Bill paid	Closing reserve
January	$1,200	$300	$0	$1,500
February	$1,500	$300	$0	$1,800
March	$1,800	$300	$0	$2,100
April	$2,100	$300	$0	$2,400
May	$2,400	$300	$0	$2,700
June	$2,700	$300	$2,400	$600
July	$600	$300	$0	$900
August	$900	$300	$0	$1,200
September	$1,200	$300	$0	$1,500
October	$1,500	$300	$0	$1,800
November	$1,800	$300	$0	$2,100
December	$2,100	$300	$1,200	$1,200

Original ASBG worked example. All businesses, amounts and scenarios are fictional. The table contains the same figures as the visual.

The $300 monthly contribution comprises $200 for insurance and $100 for software. June's insurance payment leaves $600 of software savings. December ends with $1,200 toward the next June renewal, so the cycle can repeat if prices and dates stay unchanged.

Adjust when the renewal quote rises

Suppose the insurance quote rises to $3,000 before the May contribution. At the end of April, $2,000 is allocated to insurance: $1,200 opening plus four $200 contributions. With May and June contributions remaining, insurance now needs ($3,000 − $2,000) ÷ 2 = $500 a month. Add the unchanged $100 software contribution, making $600 in each of those two months.

That is $300 more than planned in May and June. Check the operating account can supply it. The extra $300 in each month has to come from available operating cash.

Avoid counting transfers as expenses twice

If your forecast includes both the operating and savings accounts, transfers between them cancel; the bill is the external cash payment. If it covers only the operating account, show transfers out and keep the reserve account in a separate schedule. Make that scope explicit in your cash forecast.

The reserve contribution is also different from the accounting expense. Ask your bookkeeper about prepayments and expense recognition; this worksheet only plans cash availability.

Key takeaways

• Count contribution dates before the bill, not simply months in a year.
• Track reserves by purpose even if the money shares one account.
• Recalculate promptly when prices or renewal dates change.

Where to get help

The business.gov.au cash-flow guide covers ongoing costs and due dates. Your bookkeeper can check the opening reserve and prevent internal transfers from being counted twice.