I went to the CNYC conference last weekend and to the treasurer sessions, and I'm still a little confused on the different accounts we 'should' have and the purpose of each. My understanding: 1. operating fund (not a lot of excess in here, basically a checking account for regular expenses) 2. Reserve Fund (3 - 6 months of operating expenses as a hedge against emergencies) 3. Capital Reserve Fund: based on your 5 year plan for upcoming expenses and major repairs (boiler, elevator, local law #11, etc) or major initiatives (new roof garden, gym, etc).
Is this breakout what most people are doing? Do you then also have separate savings accounts or CDs or something for a portion of these funds so you're earning some interest within each of these funds (except Operating)?
Advice/guidance/sample splits and targets appreciated!!
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