Car Wash Accounting - Operating Cash Reserve

[BubblesCarWashRH]

Hello, I was wondering if anyone has any advice or insight as to what an optimal operating cash reserve would be. Any thoughts at all?

 

[MudMoney]

I can't give you a percentage, my wash can be closed up to 60 days due to winter weather so reserves are important. 6 months of operating expense work for me. That includes property taxes. Hope that helps.

 

[Islandwash]

After the past 3 months of rain, much bigger than mine was. Seriously great question.

 

[Islandwash]

Our business is weather related and also affected by consumer sentiment and gas price as part of it. People have to eat; car washing is a luxury.

 

[mjwalsh]

I can't give you a percentage, my wash can be closed up to 60 days due to winter weather so reserves are important. 6 months of operating expense work for me. That includes property taxes. Hope that helps.

Even if ... not closed ...during an extremely bad weather winter like this winter here in parts of North Dakota ... income both gross & net for some of us up here in colder climates would tend to throw futuristic projections off! We are finally getting a bit of low 30s F° temperatures to start some melting of the early November-December's 60+ inches of local snow-pack.

We rely on the city being generous with their "beet juice"! During a Q&A of one of our recent 12 sessions of our 2023 local Citizens' City Govt Academy of which I am part of ... us group of 20 citizens were told it has been a bit too cold for the "beet juice for streets" to work properly this specific winter!

I am not sure about the salt-sand-type of juice other localities use!!!???