When it comes to budgeting, keeping a close eye on recurring expenses is crucial. But when exactly should you look at these regular costs? The answer is: pretty much all the time! Here's why and how you should approach recurring expenses in your budgeting process:

1. At the Start of Your Budgeting Cycle

Kick off your budgeting process by reviewing all recurring expenses. This gives you a solid foundation to build upon. Start by:

• Listing all known recurring costs
• Categorizing them (e.g., utilities, subscriptions, rent)
• Noting their frequency (monthly, quarterly, annually)

This initial review helps you understand your baseline expenses and sets the stage for accurate forecasting. As highlighted in Essential Financial Metrics Every Startup Needs to Track, understanding these core expenses is crucial for maintaining healthy financial metrics.

2. During Regular Financial Check-ins

Don't just set it and forget it! Regular check-ins (weekly or monthly) allow you to:

• Spot any unexpected changes in recurring costs
• Identify new recurring expenses that have crept in
• Assess if any recurring expenses can be reduced or eliminated

3. Before Major Financial Decisions

Planning to scale up or considering a big investment? Review your recurring expenses first. This helps you:

• Understand your current financial commitments
• Predict how new decisions might impact your recurring expense structure
• Identify areas where you might need to cut back to accommodate new expenses

4. During Annual Budget Reviews

Your annual budget review is the perfect time for a deep dive into recurring expenses. Use this opportunity to:

• Analyze trends in your recurring costs over the past year
• Renegotiate contracts or switch providers if necessary
• Plan for any known increases in recurring expenses for the coming year

Remember, keeping a close eye on recurring expenses is key to extending your startup's runway. By regularly reviewing these costs, you can make informed decisions about where to allocate your resources and identify potential areas for savings.

Pro Tip:

Use tools like Oplin to streamline your budgeting process. By connecting your QuickBooks and bank data to Google Sheets, you can easily track and analyze your recurring expenses in real-time, making your budgeting process more efficient and accurate.