Money isn’t rocket science

My financial guru has always been Gail Vaz Oxlade. I love, love, love her! Her no-nonsense approach to money management, is quite frankly the best, in my opinion. Her slogan is “Money isn’t rocket science”, she’s right, the science is our human behavior of how we manage our money.  I was sad when she retired from both television and print a couple of years ago, but alas, all the great ones have to retire sometime.  I realize there are many authors who offer similar advice, such as Dave Ramsey, Richard Kiyosaki, to name a couple.  I know they are just as educated and advise on the same money management principles as Gail, their books are top sellers, they tour and have websites with blogs and all, but my heart is with Gail.  I’ve read her blogs, books, watched all her TV shows (more than once), it used to be my daily morning routine to sit with my cup of coffee for 10 minutes to read her daily posts.  My favorite was her “This and That” edition, where she answered general questions from readers. She’s awesome! Seeing her in person a couple years ago was a treat. Until recently, I didn’t realize just how much I absorbed her advice all these years. Truth be told, I can attribute one of my reasons for becoming a bookkeeper to Gail’s’ approach to money management.

I’ve used her principles of money management for years with my family’s personal finances, I first started with envelopes to put our weekly allowance in, then I graduated to jars and now multiple savings accounts with nicknames.  The concept is the same, jars or savings accounts, if you can “reach the end of the month before you reach the end of your money” (gail quote), you’ve figured out the science of managing your money.  When I started my business it seemed natural to follow the same principles with my business bank accounts.  I was sitting at a client’s kitchen table one day discussing his financial records and inevitably the topic of saving money came up.  Casually I told him to put a little away each month and forget about it. He said he didn’t have enough money left at end of the month to do that.  I said I know, don’t wait until the end of the month; Pay yourself first! He looked a little puzzled at first, but then he asked, how much do I pay?  I said whatever you can afford.  First year of business it might be small like 1% of total monthly sales, but as your business grows, 1% could become 2%, 3% and so on.  One percent doesn’t seem like a lot of money, but it’s more money than you have in your savings account right now, isn’t it?

I am a mom, a wife, and virtual bookkeeper. My name is Janet, and if you need help in managing the books for your business, give me a call or drop me a line using the email form on my website. Let’s talk!

Bookkeeping Practices for Dealing with Bad Debt

When you extend credit to a customer who fails to make good on their obligation to pay you, that loss of income becomes a bad debt. Most bad debt happens because a client has run into financial trouble. But regardless of the reason for it, a certain amount of loss is to be expected when you run a small business. So let’s take a look at how to deal with bad debt from a bookkeeping perspective.