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Plan an income reserve from collected revenue, entered business expenses and a user-verified reserve percentage.
Use cash that belongs to the same period
Separate collected income from unpaid invoices. Keep reimbursed costs, pass-through amounts and other adjustments on the basis your adviser has verified. The existing reserve should correspond to this calculation period.
How the calculation works
Reserve base = max(collected income − verified expenses, 0). Reserve target = base × user-entered reserve fraction. Additional reserve = max(target − existing reserve for the same period, 0).
A worked example
Collected income of 8,000 less 2,000 verified expenses gives a 6,000 base. A user-chosen 25% reserve is 1,500. If 1,000 is already set aside, add 500.
Review the percentage as income changes
An irregular-income business may need a different reserve assumption after a large payment or a change in expenses. Update the assumption using qualified guidance rather than treating an example percentage as a universal rate. Keep operating cash reserves separate.
What the result leaves out
This is a reserve scenario, not a tax return or an estimate of legally owed tax. No jurisdiction, deductions, tax bands, credits or filing deadlines are inferred. Verify the percentage and expense treatment with a qualified adviser.
Open the calculator with your own figures →
The defaults are constructed examples, not market benchmarks. Choose one currency for every monetary input; the currency selector formats values and does not convert exchange rates. Keep a copy of the records and assumptions behind your result so you can repeat the comparison after the next reporting period.
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