Get 100% of The ROI!  Unlimited Access
SUBSCRIBE Now!

User Guides

Why Expense "Buckets"? 

When projecting, it is easier to group expenses into 5 major categories, or "buckets". Variable expenses, a percent of sales, are grouped together.  Fixed expenses, with essentially the same dollar amount each month, are sorted into 4 other planning categories. 

For each of these 5 expense categories, you make just ONE ENTRY, one time, in the 3-in-1 INTEGRATED Calculator.  (Want to tweak your expense projections? Easy. Just adjust ONE ENTRY.)

Selling Expenses - Variable expense
Examples: Store payroll, including taxes and benefits; Advertising; Bags & boxes; Special events; etc.

Occupancy Expenses - Fixed expense, essentially flat $ amount each month
Examples: Rent; Utilities; Maintenance; Security; CAM charges; etc.

Administrative Expenses - Fixed expense, essentially flat $ amount each month
Examples: Management salaries (Owner; General Manager; Buyer) including taxes and benefits; Support staff/services (bookkeeping; IT; warehouse; marketing); Interest on borrowed money; Professional services (legal, accounting); Training; Travel; All other expenses not included elsewhere.


Taxes - Federal, State, Local taxes not included elsewhere. 

Depreciation/Amortization - Fixed expense, essentially flat $ amount each month.
These are non-cash expenses, and must be kept separate in order to project the Cash Flow.

5-Minute How-To Videos

31 DEC
2024

Expense "Buckets"

0

Why Expense "Buckets"? 

When projecting, it is easier to group expenses into 5 major categories, or "buckets". 
Variable expenses are a percent of sales; the monthly dollar amount rises and falls as sales fluctuate.
Fixed expenses average essentially the same dollar amount each month. 

(If you've not yet set up these categories on your P&L, use The ROI's SPEEDY Expense Analyzer.

 

VARIABLE EXPENSES 

SELLING Expenses -
Examples: Store payroll, including taxes and benefits; Advertising; Bags & boxes; Special events; etc.


 

FIXED EXPENSES

OCCUPANCY Expenses - Fixed expense, essentially flat $ amount each month

Examples: Rent; Utilities; Maintenance; Security; CAM charges; etc.


ADMINISTRATIVE Expenses - Fixed expense, essentially flat $ amount each month

Examples: Management salaries (Owner; General Manager; Buyer) including taxes and benefits; Support staff/services (bookkeeping; IT; warehouse; marketing); Interest on borrowed money; Professional services (legal, accounting); Training; Travel; All other expenses not included elsewhere.


TAXES - Federal, State, Local taxes not included elsewhere. 

DEPRECIATION/AMORTIZATION - Fixed expense, essentially flat $ amount each month.

These are non-cash expenses, and must be kept separate in order to project the Cash Flow.


Comments are closed.