Plan Next Year Budget

Next Year Financial Plan

Current IncomeExpected Income Expected Expense
Current Year (n)Next Year (n+1)
FractionQuota (M)Annual Total (x12)Quota (M*(1+A))Anual Total (x12)
Fraction A27,69332,30 €48,92 €587,03 €Total Expenses (T)2.966,82 €
Fraction B24,64295,68 €43,53 €522,34 €Expected Inflation (I*(CC))59,34 €
Fraction C23,8285,60 €42,04 €504,53 € Savings Account transfer (1) (P) 3.000,00 €
Fraction D23,8285,60 €42,04 €504,53 €Deposit Account Reinforcement (DR)0,00 €
26,12313,44 €46,14 €553,71 €LEDs Lamps 350,00 €
25,88310,56 €45,72 €548,62 €Energy Saved By Lamps-450,00 €
25,67308,04 €45,35 €544,17 €
26,12313,44 €46,14 €553,71 €
23,91286,92 €42,24 €506,86 €
25,8309,60 €45,58 €546,93 €
26,12313,44 €46,14 €553,71 €
Total (CI)3.354,62 €Total (EI)5.926,16 €Total (EE)5.926,16 €
Expected Inflation (IN)2,00%
Quota Gap (CI – EE)-2.571,54 €
Quota Increase percentage (A=EE/CI-1)76,66%
Validation (TRE-TDE. Value must be Zero)0,00 €


In this example the total expected expense should be 5.926,16€, taking in account:

  • this Year normal expenses, witch is expect to repeat next Year.
  • Investment in economic LED lamps
  • Next Year energy savings  due to economic Lamps
  • 2% inflation prediction for next Year.
  • 3.000€ to increase the Savings Account

Summing all we have an estimated expense of 5.926,16€.

To achieve this amount the Revenue has to increase 5.926,16€ - 3.354,62€ = 2.571,54€, witch means increasing revenues in 76,66%. Since all revenue provides from Homeowners Quota's, Quota's have to be incresed in 76,66% each.

Plan Next Year Budget

The objective of this task is, essentially, adjust the Quota value for next Financial Year.

First, estimate the total expected expense for next Year

The typical concerns of an Financial Plan are:

  • The Current Net Income (see Income Statement)
    If the Income is positive it means that can cover at, at least, ordinary expenses. If negative, it means that current Quota values are not enough.

    Current Net Income doesn't include Extraordinary Income and Extraordinary Expenses. Current Net Income is better for this purpose than Net Income because:
     - Planed maintenance expenses like painting, if included in savings plan, are payed width money from savings account. This way they do not need to be included in next Year budget.
     - Any repairing that occur in the present Year is an extraordinary expense, extraordinary expenses are not expected to repeat next year.
  • Maintenance of real state property
    For example, repainting is needed after 10 years and it costs 30 thousand dollars. To prepare for this expense, the homeowners should save 10% of 30.000 dollars each year. Savings should cover all maintenance required, like elevators, automatic doors, and other assets that require maintenance from time to time.

To achieve the total amount, take in consideration the aspects that you consider relevant for your case. In the worksheet provided fill the amount for each aspect in the Expected Expense Column.

Summing all Expected Expenses gives the total amount of money required for next Year.

Second, divide the Expected Expense by all Homeowners

If everyone pays the same, the Quota value should be equal to : total expense / 12 months / number of homeowners.

Normally this is not the case. The typical is every homeowners Quota be proportional to value of his fraction. In this case the Quota for each homeowner should be equal to : total expense * his percentage / 12 months

Fulfill the Next Year column on the Financial Plan for next Year and check if the Validate field equals zero. This field is the difference between total Expected Expense less Total Next Year Quota Income.