What should a usable quotation identify?
A useful quote names the asset or work, quantity, delivery scope, exclusions, payment terms and validity period. Confirm whether freight, installation, commissioning, taxes and removal of old equipment are included. Two suppliers can appear to quote the same equipment while leaving very different work for the buyer.
The SBA startup-cost guidance distinguishes one-time and recurring expenses. For the actual budget, carry that distinction further: identify assets, expenses, refundable deposits, opening stock and retained liquidity. They all affect cash, but they do not all receive the same accounting treatment.
Does paying a deposit increase the equipment budget?
In a hypothetical example, an installed equipment order costs $30,000, with $9,000 due at order and $21,000 at commissioning. Total equipment cash use is $30,000, not $39,000. The advance payment changes timing and creates a prepaid balance before delivery; it does not create a second asset purchase.
A genuinely refundable premises deposit is different. It uses cash and leaves an asset or recoverable balance under the applicable terms. Do not automatically treat it as rent expense or assume it returns inside the forecast. Check the contract before choosing its release date.
How should the opening cash schedule show the uses?
Assume, solely for illustration, $30,000 equipment, $5,000 refundable premises deposit, $4,000 opening stock and $6,000 pre-opening expenses. Those items use $45,000. If the plan also retains $10,000 liquidity, total cash sources must cover $55,000 before considering any other cash movements.
The $10,000 reserve stays in ending cash; it is not another bill paid to a vendor. If later trading losses reduce that balance, show the loss months and the resulting cash floor rather than adding both a general reserve expense and the same operating cash deficit.
Which overlaps deserve a final review?
Compare the contractor’s fitout scope with separate equipment and installation lines. Check whether opening stock appears both in a supplier invoice and a working-capital allowance, and whether pre-opening payroll is already in the monthly operating schedule. Keep each supporting item linked to one budget owner.
Save the quote version and assumptions used to complete missing scope. Replace expired or incomplete quotes before committing the budget. Then reconcile the payment schedule to sources, uses and retained opening cash, preserving a separate allowance for uncertainties that have not become supplier commitments.
