dottyanne's debt diary

In_Search_Of_Me

Hi Dotty,
Sorry you're having such a rough time. I know exactly what you mean abot feeling you're worse off DFW than you were not but the reason is that if you're anything like me you just spent money wihout thinking about it!!! I think organisation would make things much less stressful for you...how about the following as a sugesstion;
Get some lever arch files - 1 color for hom & 1 for business with dividers for various sections (ie bills, receipts etc) Then get 2 ledgers (home/work) & list income, outgoings, debt amounts, payments, ddm amounts & dates...that way you will feel more in control of where you are & less likely to loose track & incurr fees. Not sure what shop (computers?) & how much you get from this but guess at some stage you'll need to decide whether its actually financially viable to continue...this is a really tough one though as people put so much into business that hard to even contemplate letting it go...Not sure of any of that helps? It will be a hard slog but hopefully you'll get lots of support & encouragement here...bug hugs!! Recc a nice hot bath with bubbles & a night of chilling, good nights sleep and hopefully tomorrow will feel a bit less overwhelming...

dottyanne

Thanks for that fishy!! I have an abundance of folders and i am gonna get them in some kind or order if it kills me - i dont really want to think about the shop not being viable as i think it is - its just in debt cause i used to take out whatever i needed/wanted instead of a regular wage - a recipie for disaster - im now taking quite a low amount for drawings but can manage personally on this - if this amount is ok and i can still carry on paying the business bills and clearing the past debts that i built up we should be ok - i know it takes time but i never ever want to feel so out of control again in my life!!

thanks for the advice!!

dotty xx

lynzpower

Hi Im here!!

Right the thing I would look at is what is your income from the shop? I know this is unthinkable right now but you and your hubby are taking 150 a week each =£300.

WHat is the shop making ( shop takings and then the ebay shop as well) then minus everything from your SOA, minus the arrears, but including your wages.
You'll then see what is left over to throw at the debts. Its a basic break-even calucaltion.

I know we have been here before, but business has picked up a bit and of course you now have the ebay shop.

Another thing to think about is if you have any older stock can you return to the supplier? Or if not, we couldnt believe what we sold pc bits for ( old motherboards, memory etc) at our car boot sale. Youd be surprised, OH was.

Lets see what this sum is and we'll see if you are still on the right lines

OberonSH

Hey Dotty dear, pm'd you, but thought I'd add my pennyworth here too -( used to be a tuppence, but we're hauling in the belt!)

I have a folder for my delivery notes, then when the invoice comes in I attach that to it and it goes in a big lever arch file in date order, with a number - 2006/2, 2006/3 etc. I have a spreadsheet with a section for sales (with various jiggering about for the VAT elements etc) and then a section for expenses - column for rent, bank charges, New stock, Old debt etc. I tend to do my accounts on a Sunday, fill in the week from my till reports, and then use that amount to budget for the next week. If it's a poor week, I know what has to go on the basics then split the rest between new stock and old debts.

I don't have a separate folder for my unpaid invoices, as I try to keep it proforma with a lot of my suppliers - not only do I not get into trouble I also pick up discounts. I do have my personal organiser with a list of what I owe to who, and this gets updated whenever I get a statement or pay money in (as I pay a lot of my supplies cash into their banks to avid charges on my own account).

Maybe not Alan Sugar, but works for me. That way a bad week doesn't b*gger up my long term budgets, and it's so flexible, it lets me plan my orders etc for the week.

dottyanne

where do i start Obi - i have ummmmmm - no proper method for bills etc for business or home (loser i know!!), however, i dont owe anything for any stock as its cash on collection for me (my choice).. however i do pay a lot with cheque and sometimes get in a muddle especially when i take a lot on cards and the cash flow goes tits up!! I really need some kind of organisation - tries using my filofax for things due etc but never look at the damn thing - perhaps an exel spreadsheet for each individual; debtor - business and personald might be an option? dunno but i do know i need some help!!!!!!!!!!!!!!!!!!!!

dotty xx

dottyanne

lynzpower wrote:

Hi Im here!!

Right the thing I would look at is what is your income from the shop? I know this is unthinkable right now but you and your hubby are taking 150 a week each =£300.

WHat is the shop making ( shop takings and then the ebay shop as well) then minus everything from your SOA, minus the arrears, but including your wages.
You'll then see what is left over to throw at the debts. Its a basic break-even calucaltion.

I know we have been here before, but business has picked up a bit and of course you now have the ebay shop.

Another thing to think about is if you have any older stock can you return to the supplier? Or if not, we couldnt believe what we sold pc bits for ( old motherboards, memory etc) at our car boot sale. Youd be surprised, OH was.

Lets see what this sum is and we'll see if you are still on the right lines

Hi Lynz

Have tried to get somewhat organised with the business, basically would be able to pay the bills as and when they come in but its the arrears im worried about -0 whats the best option - just to play catch up or to get in touch with them and try to come to some sort of arrangement??

dottyx

lynzpower

HAve you got your SOA - one pinned up in the house, one in the shop?

Ie every month, you will have to pay, name of bill, what date.

then you will work out simply which will break even.

Do you have your home bills on DDs yet? I do, and I know they are all covered, I have a seperate account that doesnt need attending to? Could you doi this?

lynzpower

I reckon in respect of your arrears you need to be able to say to each of the creditors I can afford to pay you X back a week/ month

so you need to know what you have left over in both pots.

OberonSH

I agree, I'd phone debtors and set up an agreement. It makes you feel like you've achieved something and gets it sorted.

I pay mine using a little card booklet, and wander down to the council offices to the [STRIKE]Harpy[/STRIKE] [STRIKE]Hag Bag[/STRIKE] Payments Section with my bag of £2 coins and I love the look on their witchy faces.

It really does make you feel like you're getting there.

I know how you feel with the not organised thing, I want a separate account for my business DDs, but that means a second set of charges, so I may be sneaky and do them from a normal account or a 6 month free business banking with someone else . That way I can pay in xx amount every week and know that the rent, (not rates as I've overpaid the last few years and so don't have to pay this year) utilities and loan are all covered, and whatever's left can be thrown at my debtors.

It's ard love, but it feels great to make the calls and know that you don;t have to wait for a letter to drop in the mail or a phone call.

oOMiaOo

Hey Dotty

I thought there might be some free spreadsheet resources on the web - google "small business spreadsheet" or something similar and see what you come up with. One in particular I saw was http://www.itssimple.biz/biz_tools/tools/tools.html (I'm in no way affiliated, and I'm not recommending it, I've never run a small business in my life! but you could look and see if it's helpful).

If you need any help with spreadsheets, PM me - I spend my day wired into excel.

And could you tell me which company you're using to take credit card payments, and how long it takes those payments to come through? You seem to be having trouble here - we've just researched a few diff companies at work, and I may be able to put you on to something better.

Good luck!

PS The others are right, filing is the answer! And file everything as soon as you lay hands on it - it soon piles up otherwise. If everything's neat and filed away, you automatically feel calmer, making it easier to deal with whatever you need to do. And try and keep your systems as simple as possible.