Category: Cost of Ownership

How do you present funded reserves on the balance sheet of a shared airplane ownership?

Aviator and passenger in Cirrus Aircraft SR22TN Perspective by Garmin, photo credit wikiWings
Shared ownership in Cirrus Aircraft SR22TN Perspective by Garmin, photo credit wikiWings

Most shared airplane ownerships will want to set aside money for funded reserves. The purpose is to offset future outlays associated with engine replacement, prop overhaul, and items such as, Cirrus Airframe Parachute System.

You’ll find it easier, from a book keeping perspective, if you keep funded reserves in a savings account instead of co-mingling the funds with money in a checking account.

We use our LLC checking account to hold money to pay for gas and oil changes, and for regular maintenance, such as, tires, brakes, spark plugs, etc. But we transfer reserve funds for engine and prop overhaul into a savings account. Continue reading “How do you present funded reserves on the balance sheet of a shared airplane ownership?” →

How do you present Assets on the balance sheet of a shared airplane ownership?

I’ll admit, sometimes the asset listing on a balance sheet can look confusing. Over the next several weeks, I’ll explain the detail behind four typical asset categories shown on a shared airplane ownership balance sheet:

  1. Cash & Receivables
  2. Funded Reserves
  3. Prepaid Items
  4. Fixed Assets or The Airplane

Continue reading “How do you present Assets on the balance sheet of a shared airplane ownership?” →

How do you list the value of a shared airplane ownership?

Owners use a balance sheet to show an organization’s financial position at a specific date. It helps to summarize an organization’s value. The balance sheet presents a listing of assets, liabilities and owner’s equity. It’s called a balance sheet because assets equal liabilities plus owner equity. The numbers must balance. Continue reading “How do you list the value of a shared airplane ownership?” →

What are the 5 top questions Cirrus owners ask about CAPS overhaul

I recently spoke with the owner of Houston Aviation Center, in Sugar Land, TX (KSGR). They’ve been a Cirrus Authorized Service Center for many years and now they’re also a Certified Cirrus Airframe Parachute System (CAPS) Overhaul Center. They began parachute replacement service in August of 2015.

Here are answers to the 5 top questions Cirrus owners ask in their preparation for scheduling a CAPS overhaul. Continue reading “What are the 5 top questions Cirrus owners ask about CAPS overhaul” →

Here’s how I’d group GA flying cost

Pilots as a group tend to be orderly and systematic. We use checklists. We apply them to the type of plane we’re flying and its performance characteristics. But this skill for organizing is not always carried over to our flying costs.  I’d like to take what many times is confusing and disorderly and organize it into something coherent and orderly. Here’s a clear method for grouping general aviation flying cost: Continue reading “Here’s how I’d group GA flying cost” →

We completed the 7-year EMA airbag maintenance

The Electronics Module Assembly (EMA) of AmSafe’s airbag system contains the activation crash sensors. The Original Equipment Manufacturer (OEM) standard states the EMA refurbishment should be done at 7-years. And, you should replaced the unit after 14-years.

Here’s a cost summary of the EMA 7-year maintenance at an Authorized Cirrus Service Center: Continue reading “We completed the 7-year EMA airbag maintenance” →