I hate handling money. I absolutely abhor it. I suck at it. For me managing money means spending it and not having any so you don’t need to worry about managing it. That’s BAD – really bad – I know. But what to do? I need an accountant, WDL needs an accountant – BADLY!
Here is what I do to keep a track of WDL’s finances: have a folder on my desktop with 2 sub-folders. One sub is for invoices that have been paid and another for unpaid ones. And THAT’S it! This is hara kiri, I am telling you. (what is hara kiri? GOD GALS – you don’t Google at all, do you? Now is a good time to start … :P) OK so you would think, that’s not too bad. It is! Because I often forget to add invoices to the folders or put them in the wrong folder or something like that. Why I am confessing this? Because unless I admit I have a problem I won’t be able to find a solution to it. About ‘fessing stuff, some people/well-wishers have come up to me and said this blog will be the death of WDL. To them I say thanks for the concern but I have made so far with “this kind of attitude” and I don’t have regular Girl Fridays or Happy Hour dates with my clients. It’s more like Hey there, Can you please work on xyz task and return it by 10 PM? and that’s it. How I talk or what I talk about outside of work hours doesn’t bother them. I’d be surprised if any of my 5 avid readers turns out to be a former or current client. 😛 Chillax!
Digression thy name is MOI!
Yeah, so what do you guys suggest I do? CFOs are expensive. WDL can’t afford one. Volunteers – dunno where to find them and if I do get someone am not sure she will take it seriously enough. Back when I was partnering as a service provider with a not-for-profit in the US I was surprised to see how almost all of their staff was made of volunteers and each performed her duties like she would at a paid job. Here, in my dear country, I am afraid that ain’t gonna happen.
So, what are my options? Any free software available that’ll manage WDL’s finances? At the business skills course, they’ll be giving us classes on accounting and finance. Am hoping to pick something there – fingers crossed.
So, if you are a VA, which makes you into an entrepreneur, like it or not, you must keep a track of your money. Know what comes in, how much goes out in payments to team members, how much is spent on office stationary and power backup (I have to change the battery for my UPS every year and it cost me Rs. 12k this time), etc. Don’t get super excited by the total figure at the end of the month – learn to differentiate between total revenue and profits. Put aside a certain amount every month no matter how irresistible the lawn sales are – there will be lows and you must be prepared for them. I didn’t listen when a friend advised me to do just that a year back and I found myself so broke I put Oliver Twist to shame – Please Sir, I want some more … (have you noticed how when you are broke even a Rs. 100 DVD, that is roughly $1.2, seems like a fortune that mean, old fate has deprived you of?)
Lap up these words of wisdom, Ladies! oDesk and Elance don’t teach you this. Only experience does. And of course MOI!