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					           Private Practice Finances Made Easy 4-Week Teleseminar Series
                     www.privatepracticefinancesmadeeasy.com

        Teleseminar #3: Profits for Healers - Work Less and Accomplish More
                                     April 8, 2009

                      Karin Mizgala, Financial Planner and Educator
                                 www.lifedesignfinancial.ca
                                            and
                      Juliet Austin, Marketing Coach and Copywriter
                                    www.julietaustin.com

      ======================================================

Hello everyone. This is Juliet Austin and Karin Mizgala here with me. It is tele seminar no
3 of the Private Practices Finances Made Easy tele seminar series. It is April 08 today.
Who else needs to check in yet?

This is [participant].

Juliet: Hello [participant]. Keener number 4.

Karin: How you feeling [participant]? I heard you were sick.

[Participant]: I’m not so good today.

Juliet: Oh No!

[Participant]: Sore throat. It goes away and then it comes back. Kept me up last night.

Juliet: We are glad you are here anyways.

[Participant]: Thanks.

Juliet: And did anybody else join us?

[Participant]: Hello

Juliet: Who’s that?

This is [Participant].
Juliet: Sorry. Who is it?

[Participant]: - from San Francisco Bay Area.

Juliet: Hi [Participant]. Welcome to the call. Glad you can join us.

[Participant]: Thank you.

Juliet: And anybody else? OK. Well, why don’t we get started and maybe some others
will join us after, Karin.

Karin: Great. So any housekeeping issues, Juliet?

Juliet: I don’t have any. Just to say that we are still waiting for the first transcript and we
are hoping to get that soon, so the transcripts will be coming from the calls. I don’t think I
have anything else. Maybe we should just go around and just do a check in with
everybody. We have quite a bit of time extra here today too to ask more questions. But
let’s maybe just start with the check in - just where everybody is at in terms of progressing
with material. And don’t worry if you haven’t got as far as you wanted or hoped. You have
to do what you can. So let’s hear where everybody’s at.

Participant: I guess that would kind of sum it up for me as I realize that I am a little bit
behind where I want to be. But the good thing is that it really is getting me looking at things
and tracking what I usually just avoid. I avoid the figures - looking at the reality of things.
And I am doing it and it’s coming together. So that’s great.

Juliet: Excellent.

Participant: Yes.

Karin: Karin here. So how is it feeling to confront that avoidance behaviour and walk
through it?

Participant: It is very empowering I have to say. No matter how - I may be not as happy
with it as I hope to be in a year from now. I really feel good about tackling it, getting
organized; it feels like I‘m getting like I said ‘in control’ of things and it feels good.

Karin: Good. Right on.

Juliet: And who else?

Participant: Hi. Looking at the home work for this week I am realizing that it is forcing
me to do my personal budget which is a good thing. I am realizing because I am just in the
beginning of setting up, a lot of these figures are not available to me yet. But at least I have
the framework and I know what to look out for or what to keep in mind for that. I find it
quite helpful too.

Juliet: Yes it will make it a lot easier because you already have this as you are getting
going on your practice and everything.

Participant: Yes. And I’ll start recording it right away rather than having to do it later.

Juliet: Yay! That’s great!

Participant: I kind of feel like I am cheating. Because I have this wonderful husband who
is great with finances and he’s been doing all this for me so I can use my avoidance tactics
and get away with it.

Juliet: Even though he is doing it, are you paying attention to what and how he is
organizing things?

Participant: Yes I am. And I am learning spreadsheets and all kinds of things.

Juliet: Then you are not avoiding it.

Participant: Oh Ok.

Juliet: It’s like you are delegating not abdicating. It’s like he’s your book keeper. And it is
fine to have a book keeper and it is really good to have a book keeper but you still want to
know what is going on.

Participant: Yes. I am learning that. I am learning how to make sense out of it . And it is
handy that I have a book keeper that lives with me.

Juliet: Right. That’s great. And, how you (next participant) doing?

Participant: Well not meaning to be a keener or anything I accidentally and it was quite
accidental, read the last chapter instead of the one for this week. And I thought, ‘Wow this
is easy. This is no problem.’ And then of course I had to go back and read the chapter for
today. I remember reading somewhere, in one of the two chapters, that if you are not
making a profit then maybe you should not be in private practice and maybe you should go
get yourself another job. Somewhere you say that. There was this kind of pride that I felt
that I am doing well and I am making a little bit of a profit I think. My desire to not have
another job is so strong that is pretty well forces me to keep going with all this. I am proud
of that because I really don’t want to be doing anything else. And in order to do this I have
to do what I have to do. So I am actually feeling pretty positive about where I am
financially right now. I also found out, because of my accountant, that I don’t need to pay
anywhere near the amount of taxes that I saved. So that means that I have got some extra
cash which is just an amazing position to be in. We are going to look at what we’re going
to do with that. That’s another reason to feel happy.

Juliet: That is great. How long has it been since you quit your job again?

Participant: Almost two years - about a year and two thirds or something.

Juliet: I just wanted to bring this up for other people on the call. (Participant) had a small
part time practice for years and she quit her job almost two years ago like she said. And she
has just been full and has lots of clients and doing really, really well. So it is great. She is a
model for everyone.

Participant: It is because of this marketing, good coaching, it’s about having the right
people working with you to ……

Juliet: ….and doing the work. You seek out information; you seek out support and
guidance and you benefit from it because you do the work.

Participant: Thanks.

Karin: Ok (next participant), how are you doing?

Participant: I am doing better than last week when I started tackling avoidance. I still have
a few empty spots where I don’t have the figures to fit in yet. But I definitely have a
decrease in anxiety and a feeling like, ‘I can do this. It is really pretty simple. I can do it. I
can fill in the blanks.’ So I am feeling pretty good.

Juliet: That is great. You were on the call last week thinking you weren’t going to come to
the call as a good way to avoid. Is that right?

Participant: Yes.

Juliet: But you came. Did anybody else join us? OK. All right.

Participant: Can I just say something? I don’t know whether this an OK thing to say but
tomorrow there is a free workshop about building a business plan for those of you who
live in the Vancouver area that I am going to go to. And I thought I would let people know
that. I hope it is OK to let people know that.

Juliet: Sure.
Participant: So maybe if anybody is interested in that they can email me or something or
ask me later.

Juliet: Email (participant). Or if you don’t have (participant’s) email, email me and I will
pass it on.

Participant: Great.

Juliet: Karin, you want to start?

Karin: Good. I think the first thing that I would like to do is just to see if there are any
questions relating to either last week’s worksheets or the materials from last week or from
the previous week. Any technical questions or any comments as far as working on the
worksheets, frustrations, challenges, satisfactions, anything of that nature?

Participant: I have a question. You can write off the interest of your car loan, is that right?

Karin: Yes.

Participant: You can’t write off the car loan, just the interest.

Karin: That’s right. Exactly. And it would be the same if you lived in a home where there
was a mortgage and you were using your home office. You can’t write the whole amount
of the mortgage off. You can only write the interest amount off for business purposes.
This is Canadian tax law and tax situation. In the US you will have to check with your
accountant or the tax department on the specifics. I know the mortgage interest is fully
deductible in the US personally. But I am not sure how that works as far as the business is
concerned. But in Canada it is the interest portion of the mortgage if you qualify for being
able to write a portion of your home office off.

Karin: Any other questions along those lines or working on the work sheets? Did
everybody get a chance to actually try some of those excel worksheets out on the computer?

Participant: I printed mine off and I am working it that way.

Karin: Is there anybody who hasn’t used excel spread sheets.

Participant: I haven’t and I think……

Juliet: One of the things that we should probably say is that if you use the excel
spreadsheets on the computer all the formulas are there in the columns. So if you put the
figures in the columns it will automatically add everything up for you because the formulas
are already in there. And also the categories. If you want to change them and modify them
to personalize them to your own specific needs you can do that as well. Anything else you
want to say about that Karin?

Karin: Yes. I think that those were important concepts. The other one is that what I’d
recommend that what you do is keep a blank copy. Keep a clean copy on your computer
and then save it as let’s say April 2009 - save another copy which is your working copy
because if you put a number into one of the cells by mistake that has a formula you could
inadvertently mess up the formulas a little bit. So it’s always good to have a clean copy
available that you can go back to if need be. They are fairly simple excel spread sheets. I
know that if you haven’t used them, anything new is scary. But just jump in especially if
you use one that is just a copy so it does not matter if you mess it up. It doesn’t matter if
you don’t have the numbers put in the right spot. It really is just to dive in and just to try it.
But all the numbers should just add up and subtract and so on. So you don’t have to worry
about that piece.

Participant: I have a question. If you’ve got one of those accounting software - is it kind
of a double whammy or should you be doing both or does it depend on the programme?

Karin: What type of programme do you have?

Participant: I ended up buying Quicken because it offered business and personal in one
package.

Juliet: Ok. That was a good thing.

Karin: Yes. Quicken for the business part should and I am not familiar exactly with the
contents of it but if it says it is for business use, then that really should be book keeping
software. Then you don’t really need to use the worksheets that we have put together for
this course because they would have something similar in the Quicken worksheet or the
Quicken software. The worksheets that we have put together here, the excel worksheets,
are really designed for people that aren’t using book keeping software. Ok so you don’t
have to double up.

Participant: I’ll try both and see which one is better.

Karin: Yes. You can give the other one back,. They have a 60 day trial.

Juliet: I was just going to say I don’t know about Quicken but generally speaking Karin
wouldn’t you agree that it is easier and more sophisticated to use a book keeping system
than to use excel spread sheets.

Karin: Absolutely. These spread sheets are designed to be simple to give you some facility
with accounting or the concept of accounting and the concept of tracking your expenses and
your revenues. They are not designed to be perfectly accurate - they are accurate, but not
perfectly compliant in terms of all accounting standards and principles. Whereas if you
purchase software it is going to be more complicated to get it up and running than these
simple excel spread sheets. But it is going to provide you with more information, more
reporting - a better tool ultimately. However the learning curve is usually higher. And
typically people get bogged down with some of these accounting and book keeping
software programs if they are doing it themselves.

So what we tried to do here is just to take the basic concepts, distil them to their essence
and really identify the things that you need to know as private practice practitioners to help
you get into the numbers, to stop avoiding them and to use them to your advantage. And
like we said and I am going to say this over and over again: I would still recommend that
you use a book keeper to do the book keeping piece for you. Because it is finicky, it takes
time and energy that you are probably better served by using that for your clients, for your
family, for other much more enjoyable activities.

Juliet: They are also intricate like we talked about intricate little book keeping things that
you have to do that you are always going to wonder how to do them.

Karin: Exactly. That is what I might recommend though and I think that is what we said
last time as well too, is that the ultimate I think is to have a book keeper. But if you want to
get a little more comfortable with numbers, to have more hands on knowledge, then what
you can do is use these worksheets for a month or six months or a year so that you are
involved, so that you do understand the mechanics if that is the kind of learner that you are.
And then you can delegate the responsibility to someone else to do the book keeping piece,
adding up the receipts and all that kind of thing. At that point then you will have had some
real practical experience with it. Then when they give you reports and you have your
conversation with them from a managerial perspective it is going to make more sense to
you. That is one way to use these worksheets. Use them for the short run. For those of you
who are just starting out that also could be a good use of your time, to use some of these
spreadsheets just to get you started. Because you probably won’t have a whole bunch of
transactions and receipts. Hopefully you will have a whole bunch of revenue coming in. If
that is the case then I’d love to talk with you because I would love to know what your
strategies are because I would like to use them myself. But that is the way, when you are
starting from the ground floor, to set up a system that is really, really simple. It is fine to
start and then within six months or a year you can start to evolve to involving a book
keeper.

Participant: What I really liked about the software was that is you can download
everything from your account from the internet. Actually the numbers add up.

Karin: Of course. And all of that is fantastic but I’ll tell you like I say I don’t have
experience with the business side of Quicken but I do have experience with the personal
side of Quicken and I know that it is finicky to get it going. The other thing and I say this to
a lot of my personal clients: also what happens if they spend, what I would call their
‘money time’ on putting numbers into spread sheets into software programs like Quicken,
yes you can down load things but you have got to get it right and it might not capture
everything. So you spend a bunch of time putting numbers in which is all fine. The
problem is if that’s as much time typically anybody wants to spend on their money. It’s
what they don’t actually do that is really important - which is interpret the numbers and
interpret the worksheets and the reports that come out of these software programs. Quite
honestly then it is a whole bunch of garbage in because we are talking about our own
personal life here that is going into these worksheets. But if it is not interpreted; if we don’t
spend the time interpreting then it is a bit of a useless exercise.

Juliet: The other thing is if you plan on getting a book keeper to do it later, most
professional book keepers will use Quick Book, that is one of the most common ones.
There is another one that they use. But mostly people use Quick Book, don’t they Karin?

Karin: Yes. Keep that in mind. That is the one that book keepers use because it is probably
an upgrade from Quicken and probably costs more too, I would imagine than Quicken.

Juliet: So I wanted to say that. And the other thing I wanted to say is being the marketing
coach that I am, the one exception to what Karin was saying about using a book keeping
system instead of using excel spread sheets is the sales and marketing tracking sheet. I had
Karin make it up to be divided into the types of marketing that you are doing, the types of
marketing strategies and keep track there. I don’t think there is a way in Quick Book to do
that easily. So that sheet would be really important to do for tracking your marketing and
what you are spending on your marketing. Also it how my clients know that you are
getting which is your return on investment, ROI it is called. So that you know where to put
your marketing efforts and where to spend your marketing dollars. That sheet you should
do even if you have a book keeping system because it also has also the purpose of tracking
your marketing, for looking at where you are going to be spending and how you are going
to be spending your marketing dollars of the future.

Karin: It is a really good point. You’ve got to really look at what your information
requirements are and then to match the systems to what your ultimate needs are. It is not
just numbers for numbers sake. It is having information systems that are exactly that, that
are going to give you something back. It is not just because we are doing this for tax
purposes or because we have to or somebody said we should be doing this. It is to create
systems that then provide you with feedback so that you can make better decisions. I think
one of the blocks that happens for most people around money is that there is that disconnect
between these numbers and this accounting stuff. And if we just think about it as these
numbers all they are, is they can validate, that we are on the right track, they can direct us
in terms of decision making, there is a purpose behind all of these numbers. And if we
think about it from that common sense stand point then I think it dissolves that block that
exists because the numbers somehow seem divorced from our own experience in reality.

So always come back to what do you need to know and to keep track of, so that you can
decide how to spend your time and money and energy to really do the things that you want
to do.

Participant: To that end, this isn’t about spread sheets. But one of the things I realized by
just looking at this book you’ve put together, is that out of about 25 clients or so that I have
that I see once a week or once every two weeks or whatever, I have 8 that are on a sliding
scale.

Karin: And that is something you realized by looking at this?

Participant: I didn’t realize that I had that many on a sliding scale. I don’t want that many
on a sliding scale. I am really happy to know that. Right now I got them and I am not going
to do anything about that. But I am not taking on any more for quite a while. I’ve referred
two people already this week out to somebody else because they weren’t full paying clients
and just having said that - that is going to be OK.

Karin: That is such a perfect illustration of the power of documenting the numbers,
document using the tracking sheet so that it creates awareness and it creates consciousness
around our decisions. And that is exactly what it is all about and it is not about judging
what you’ve done. Or I shouldn’t have done this or what’s this going to mean in terms of
my revenues if I make different decisions here? It is really about just bringing all of this
stuff, getting real about what is going on and then being in a real powerful position to make
trade off decisions. Thank you very, very much. That is a great illustration.

Participant: I feel like it is bringing it into present time for me. Because some of the clients
I have had for a while and when they started with me my rates were lower or they said they
could not pay or whatever but now in present times that is not going to happen again.

Juliet: And did you actually do the calculations on how much money you would be
making if all those were full fee?

Participant: I did. And Oh My god! I had to do the calculations three times because I
could not believe what I was looking at.

Juliet: I am not saying that you should be doing all for full fee but however full fee that
you wanted the difference between what you have.

Participant: A lot.

Juliet: Yes. It adds up. Anybody else have any comments or successes or challenges?
Participant: It depends on how many red lights are there between my volunteer work and
4 o’clock.

Too many

Who is that?

Juliet: Oh Hi (participant). I did not recognize your voice.

Participant: I don’t know how to say this. I realize that there is a deficiency that I have in
my business that is going to require a lot of thinking. It is not so much how to fill in the
form other than listening to all of you with your practices. I realize that I have done myself
a huge disservice. When people come to see me, I guess it is in my mind, it is my doing,
my mindset that has them coming once rather than continuously. So I have to go to great
efforts to get someone for once. So when I hear you talking about sliding scales, part of me
says, ‘Oh get over it. You can’t keep getting them to come back. How lucky.’ I have to get
over it. I am thinking, ’Gosh if I could only get mine to come back.’ So I have to redesign
what I offer altogether because they should be coming back in fact.

Juliet: Why aren’t they coming back though?

Participant: Oh no, no. It is not a value. That’s not it,

Juliet: It is the way you’ve structured it, I think.

Participant: I’ve structured it so that I spend three hours with them, don’t charge enough
for that time and they go home with all this advice and then they set about doing their thing.
And then I bump into them on the street three years later and they say, ‘Oh that was great. I
felt so much better afterwards.’

Karin: This is very, very important what you are talking about here too as far as awareness
and as far as analyzing the business structure and the business plan and your operations
plan. It is not necessarily specifically what we are talking about but of course it does
dovetail into the money. It translates into money.

Juliet: It takes a huge amount to bring somebody in. and if there is some kind of continuity
program even if it is a couple of meetings then it is a huge amount of energy, outlay, when
somebody is new the intensity of listening and of creating a rapport and creating a
relationship is huge. So from a profitability stand point, it is not to look at your clients with
dollar signs on their heads, ….

Participant: And that was what I had done before. Also I was short on time. So it’s Ok
because I had a whole lot of ……..(?) And I was ……… (?) I would get the odd referral
from the clients which was very nice but now it is different. I know that was not the
intention that you created as an outcome for me but it was an outcome anyway listening to
all of you.

Juliet: But it is an intention because it is about increasing your awareness to see about how
much money you are making and how much you wanted me to make.

Participant: And how to structure.

Juliet: And yes the structure. What you are talking about there is structuring and pricing
your services. We are not going to get into it at all in this course. I think we will talk about
it a little bit next week. But we could talk about that for weeks alone. And when you are
marketing it does take, I think that research shows that it costs 5 times as much to get a new
client or customer than it does to market to a new client or customer to get them to come
into the door than it does to people who already know you. So if you can, of course you
don’t want to be giving services to be people that they don’t need. But that is not what I am
talking about. What I am talking about is structuring your services like (participant) does
these consultations, in finding a way. Because obviously people could benefit from, I know
what she is doing and there is no doubt in my mind people could benefit from follow up
and so if she created a structure or plan for the follow up so they had a choice and knew
and could understand the value in coming back they would go, some of them at least they
would say, ‘Oh yes. I want that. Of course I am going to come back and pay you for that.’
Because they are going to get value from it. But if they don’t know it exists because she is
not offering it to them they are not even thinking about coming back.

Participant: Unless you are clairvoyant they would not get it.

Juliet: She is losing money on that and people are not getting as good a service as they
potentially could be.

Participant: Absolutely

Juliet: Yes That’s good. Thanks for sharing that. Anybody else have anything that they
want to share?

Participant: I have a technical question. The spread sheets - the ones that you sent us now
as attachments. But the ones that that are on the webpage to download - how do we save
them. I get the webpage with the ones that are in the book too. But I don’t want to print
them, I want to save them. How do I save them?

Juliet: Did you try to download them?
Participant: Yes. I get the page, for example, net worth formulas - the web page right?

Juliet: No they are just a document, like a word document. It is a document that you
download.

Karin: It is in Excel.

Juliet: When you download it you should be able to just click on your computer - File,
Save As and then save it into your directory. Because it is actually not a web page. It is
actually a link from the web page into an excel spread sheet that is just sitting on the
webpage. As long as you have Excel program on your computer then you should just be
clicking File, Save As, naming the document, putting it into a particular…….

Participant:I have done that. But what I get is julietaustin.com/ppf/networthformulas.xls
but it is like a webpage.

Juliet: Did you try all of them?

Participant: Yes I tried all of them. I got a web page too and then there was a place where
I clicked print but I haven’t figured it out.

Juliet: Have you downloaded the document from the web before ?

Participant: Yes I have. But I think what I could do, I am just seeing I could right click the
link before opening it and then put Save Target As and then try that.

Participant: Oh Yes. If you right click it with your mouse before you download it - just
right click the link and then click Save Target As and then you can actually save it into your
computer. I answered my own question. Thank You.

Juliet: Good. Other people may have had the problem too. It probably depends on the set
up of your computer.

Participant: And where are the worksheets? Are they on the Women’s Financial Learning
website?

Juliet: They are in the link when you first registered and I’ve been sending it out. It is just
a page, a download page that you just click on the link in the email that I sent to you. It
would have been on the first - let me just look and see what emails I have sent you. I have
sent it in several of the emails - the link.

Participant: It is in the first one that says ‘Bridge numbers and downloads’
Participant: I might have deleted it.

Participant: Could you send it again to us.

Juliet: Yes. I’ll send it again.

Participant: Yes because I might have deleted it.

Juliet: Sure.

Juliet: And did you download the workbook?

Participant: I did. Because it is the same pages where the workbook is.

That would make it easier.

Juliet: Anybody else have any technical questions? Any other comments?

Participant: I have a question.

Juliet: Sure.

Participant: Juliet, what were you saying about it takes so much more money to attract a
client?

Juliet: You’ve probably heard me say this before: marketing at its core is really about
building relationships with people over time where they know they can trust you. That is in
the long term where most people will come to you. So for example, once you get a client, a
therapy client and people finish or they come back later, but once they have had a good
experience with you, you don’t have to market to get to them. Because the next time they
need a service or when their friend needs a service they are going to refer you immediately.
It doesn’t cost you. It might cost you some money to keep your newsletter going and keep
in touch with them that way. But in terms of the cost to get a new client, you have to market
to them the research 5 to 7 times and sometimes it can take 20 or 30 times. They do these
formulas when they try to figure out this in research and usually they are doing it with
products and customers. But the same rules apply. It takes longer to build that trust up. It is
going to cost you more money to build that trust with strangers.

Like you for example. With (participant), all I have to do is send an announcement out to
my list and you sign up. Because you already have trust and you said that to Karin and I
when you first signed up because you’ve already have done courses with both of us.
You’ve worked with me for a long time and you’ve done courses with Karin. Your trust
was there. You are not going to sit there and read that announcement going, ‘Gee! I don’t
know about these two. Should I do this? Should I not do this?’ You are not going to wait
for 3 or 4 emails and go, ‘Gee! I don’t know. Maybe I should talk.’ You already have that.
It is like a no brainer. You want it, so you sign up.

Participant: As long as you don’t keep calling me a keener all the time.

Juliet: You don’t like being called a keener?

Participant: I don’t know.

Juliet: Anyway does that make sense?

Participant: It does. What it seems like to me is that you always have to keep your
marketing going, right?

Juliet: You do.

Participant: I get what you are saying. Once they are with you and you build the trust. But
you are saying you always have to keep it going to get the new clients.

Juliet: No you keep it going because you want to stay in touch with the old people
whatever old clients and whatever people that have been on your list. But you don’t have to
work as hard or spend as much money as to convince new people. Once you have them
let’s say paying money to me. That is why I don’t understand what you are saying because
you are just paying for marketing anyway. But I don’t have to take a lot of time with that
now.

Karin: This is Karin. I’ll give you an example. For instance, I often find that for people
who don’t know me then I might spend a whole bunch of time talking to them before they
even come to a $37 class. So I am actually spending way more money time-wise if you are
on the clock so to speak, to get somebody to come to a $37 class. But then after that they
know me and then often they will sign up for other things without calling me and spending
time there. It is easier once people are in the loop then they are making decisions more
quickly and with less time input on behalf of the service provider.

Juliet: Also once you’ve built that relationship, like for me with my list, my list is my
newsletter list. If I want to make some more money, I’m just putting it bluntly like that, that
is not how I think. If I want to make some money all I have to do is put out an offer to my
list, it is the minimal amount of time and energy and it does not cost me anything maybe a
few dollars of my time or my assistant’s time to set up the thing and send it out. Because
I’ve already spent all this time and money and energy in building that list so now it does not
cost me that much because I’ve got all these people that already have a relationship with me
through my newsletter.
So if I am doing that thing with you and you are thinking of buying a book and you have
already got this pool of people around you, once people buy from you they are more likely
to buy other things from you. That is also true. Like Karin you can say that people go to
one of your courses and they go to a lot of your courses. Same with me. How many people
are coming to these calls. Right now on this call there is (participant), (participant),
(participant), (participant) and (participant), four of you have done other programs and
worked with me individually. And there are 19 people registered in this. So what does that
say, right?

Participant: That we are keeners?

Juliet: It all comes back to the keener.

Participant: I guess when I look at that can I give 15 minutes to people free and then if
they come they pay me hopefully full fee. So I’m not giving a whole lot away.

Karin: You are smarter than I am.

Participant: I doubt that.

Karin: You know what they say you teach what you need to learn right? So I love teaching
because I get so many good ideas and reminders with my co-facilitator with Juliet here and
also with participants in my classes. We all have to be reminded and encouraged and we
hear good ideas and we think, ‘Oh God! I knew I should do that.’ or ‘I need to tighten this
up’ or ‘I need to look at why am I over giving; why am I making some of the decisions that
I am making’ and it doesn’t matter how smart we are; it does not matter how much
information we have; it is so useful to be reminded of these things and to get input from
other people. So thank you.

Karin: Anyone else? One of the things that I wanted to do before we get into the material
for tele seminar no 3 is that there was a question or some comments last time. I believe it
was you that had brought up the idea or the issue of the mileage as far as car expenses are
concerned. At least ….

Participant: Just what I had experienced in the Revenue Canada seminar from apparently.

Karin: So I double checked it and exactly as we talked about it the last time is that to be
compliant what you need to do is you need to track the kilometers that you drive for
business purposes relative to the number of kilometers that you drive overall in the year.
You need to keep your gas receipts in your car, expenses and all of that.

Participant: But you must have the receipts as well.
Karint: Absolutely. And where that 50 cents comes in and I think why some accountants
and book keepers have used the “rule of thumb” is because there is something in the tax act
that talks about, and for 2009 it is 52 cents per kilometer, but that relates to people who are
employed and are using their personal vehicle for business purposes and they are getting
reimbursed by the company. So I think what has happened is that some of the accounting
professionals have sort of extrapolated from those figures and applied them, not correctly to
self employed people. That is probably where the confusion - not confusion but the
distortion comes in because there is that definition within the Canada Revenue Agency that
relates to the 52 cents per kilometer but it is for a very specific purpose and not one that
supports the purpose of self employed private practitioners. So keep your receipts and track
your mileage kilometers for your car expenses or for write off purposes.

Any other comments or questions about that or any other things in that domain?

Karin: Alright. What I want to do is spend a few minutes to go through and highlight the
key areas of the materials for this week. Hopefully most of you had the chance to at least
glance at it. It is a short read - there is only about 10 pages here. And really the intention
was to try and break this material up where we are front loaded with a lot of the worksheets
to be done so that you have a chance over the course of the four weeks to, if you weren’t
able to stay on top of it during the week that you have time hopefully before the end of the
course, to at least try some of those work sheets. Because this is really a good opportunity
to try them while you still have access to us through the course to deal any of the technical
challenges or glitches or whatever else you might encounter. And by all means of you don’t
like Excel or you don’t want to go that route you can print them off and fill them in by hand
to at least get the swing of it.

And then again what I’d recommend is that if you want to use the excel spread sheet or
your own tracking system and you are not using a book keeper then get somebody to train
you up on how to use the excel spread sheet. Because to do all this stuff by hand on an on
going basis is just going to cause frustration and waste of time and energy.

Juliet: To do it on the spread sheet, on the computer

Karin: One of the main reasons for it isn’t so much for the information from the past.
Although if you are anything like me I put something in and go, ‘Oh shoot! I’ve got the
wrong number in the wrong spot’. It is a lot more difficult to change something if you are
using pen or pencil whereas it is much simple just to go back and change the cell in the
excel spread sheet just where you put the numbers in. So if we thought it might be difficult
to do these things by hand when you are looking at the information that you are tracking
from the past, it’s even harder when we get into this next topic which is really looking at
planning forward.
Up to this point we really talked about tracking your past information and your past
numbers as they relate to what your revenues have been, what your expenses have been.
And that’s great and it is really important to make sure that you have got a strong
foundation. Even more important is to move forward and to grow your business and to
say, ’Alright. Let’s take some of that past information which can inform us, which can
inform me as far as what I have done in the past but that doesn’t necessarily have to have a
huge amount of bearing on what you are going to do in the future.’ But you need to know
where you started from in order to assess what is realistic with certain parameters.

The next section is really looking at budgets. I don’t like that word budget. Really what we
are trying to do is look at cash flow projections or ways to look at numbers for planning
purposes. And that is really the intention behind the budget. And that is why calling it
budget for people who don’t like budgets, I don’t know about you, but for me the word
budget feels restrictive - it feels like there is some poverty mentality that is embedded in that
terminology. I feel tired thinking about the word budget where I think it is really an
opportunity to exercise your power of choice, to make conscious decisions, to try different
scenarios, to look at the impact of different marketing programs, what they might cost but
then how that might impact your revenues. Then you can, with a blink of an eye if you are
looking at using an excel spread sheet for this planning purpose, which I would highly
recommend, whether you are using a book keeper or not, they are not really going to get
into the forward planning. So if you use a book keeper then fine, then some of the other
spread sheets and work sheets are not necessary. But in order to get you where you want to
go, then it is a matter of being able to easily look at the impact of different expense
parameters and different revenue targets. So that you can play with it and say, ‘Then what
is the impact if I was able to work with 5 more clients and I was able to charge them a little
bit more. Then what would my revenue figure look like?’ If my expenses don’t have to go
up then WOW the difference between my revenues and expenses which is my profit, you
can really start to see that that can increase in a way that perhaps is not requiring an outlay
of more money or more time. So that is where this function of really trying to look at some
scenarios for going forward is really, really useful.

The other advantage to using this kind of worksheet, that is on page 54, is you can also
keep track of not only your revenues but your actual cash inflows. You can break down
how the money is coming in to you and if someone is coming in with cash and VISA, if
there is cash being injected into your business; for instance from loans or if you are making
your own investments or if you are actually infusing some capital and capital just means
money, into your business, then you can track the cash flows. So you are really seeing not
only what your sales are but what actually the impact is on your cash flow.

This is particularly important if you have accounts receivables. So for instance, if you bill
clients and they don’t pay immediately that might distort things. Your revenues look great if
you include what clients owe you. But from a cash perspective if that is not sitting in your
bank account then you got to be careful that you are not spending that money in your
expenses because then you will run into a deficit. So this worksheet has a lot of different
factors or a lot of different functions so that you can actually look at what your expecting as
far as cash inflows and out flows on a monthly basis. And you could and Juliet and I talked
about this but we wanted to keep this pretty simple at least for this round. But once you get
some facility with the planning function of this worksheet, you could also put right beside
each of the months on this worksheet, you could put ‘projected’ and then you could put
‘actual.’ But if you want to get to a level of sophistication on this where you are actually
tracking what you thought you might do versus what you are actually doing.

I was just going to point that out as an enhancement but it is not necessary and I don’t want
to overwhelm anybody with too many things that they have to do. It is better to, like we
said a few times before, for a lot of you this is new material, new information and new
ways of thinking about numbers and money. What we are trying to do here is just distill the
most important elements. But I also want to give you a vision of possibilities with how
some of these two could easily be enhanced to then provide you with even more
information particularly if you are wanting to manage some of these numbers on your own.

Anybody have any questions? Juliet? Any comments on budgeting, cash flow projections?

Participant: Can you hear us?

Karin: Yes we can. I did not mute people this time because it was only a few of us.

Participant: OK. I am confused about the sheet - the column where it says ‘total cash
outflow - sum of line 70 to 30’ and then the one after that ‘line 6 minus line 31.’ I was
looking at that and I think 7 to 30 is pretty clear. I just wondered if somehow…….

Karin: You are right. Those numbers are wrong. Thank you for pointing that out. It should
be: ‘the total cash outflow should be 7 to 37. And the net cash flow should be 6 minus 38.

Participant: Ok. thanks

Karin: Thank you. Thank you for pointing that out. This is precisely why I revised these
for this class but that does not always mean I catch everything. So thanks for the eagle eyes
there.

Participant: You just want to make sure we are reading it.

Karin: You got it. That was the trick and you passed.

Participant: I have another question about it. Page 40 and 41- I see the asterisk at 40 and
that means to include only partial portion……
Karin: You know what - ignore those two. Ignore those asterisks because the asterisks are
actually for the numbers from 21 to 33. So just ignore those asterisks completely. I took out
the explanations on those but I did not take out the asterisks. The asterisks actually relate to
the fact that the expenses, that the asterisks at the side of ones that might relate to a home
office and you’ve got to be careful that you only track the portion of home office expenses
that are eligible as business expenses because otherwise you might end up double counting
the expenses in your personal cash flow and in your business cash flow.

I think we’ve talked about that a little bit last time and again from country to country what
you can write off might be slightly different. But by and large, well certainly in Canada, the
things that you are allowed to write off as they relate to your car or to your home is only the
proportion that could be reasonably argued that that portion is really the portion that you are
using to generate business income. And there are various formulas for how that goes about.
I think we said that we are trying to stay away from super detail tax information in this
class and call. But those are the kinds of things that you may need to refer to your
accountant who is doing your taxes, your book keeper who can help you out or checking
out for instance, in Canada - The Canada Revenue Agency website - that can give you the
details on what you can write off.

Juliet: For the US it’s the IRS and …..

Karin: Exactly.

Juliet: Karin, I just want to clarify so where it says 40 and 41 - those lines- we just delete
the asterisk from the end of the line?

Karin: Yes just delete the asterisk.

Juliet: We can send out a new spread sheet to the people.

Participant: Karin, on that note I just got my car it went for maintenance - yesterday I just
got the bill for $250. I am claiming 30% for business. So I would take 30% of that total and
then put it into the April figure.

Karin: Exactly. That is exactly right.

Participant: And we would only be able to do that if our car is insured for business
purposes. If it insured as personal vehicle then we can’t right?

Karin: If you are using it for business purposes, you better insure it for business purposes.
I actually talked to an auto insurance agent (ICBC) here in British Columbia and they were
really strict on that. They said if you get into an accident and you are driving for business
purposes and you are not insured for business purposes, they could disallow the claim. So
be really careful with that. If you are really not using your vehicle for business purposes
then you don’t have to insure it for business purposes and you won’t be able to write
anything off.

Participant: Just to be clear - business purposes does not mean driving to and from the
office.

Karin: You got it.

Participant: Ok. Thank you.

Karin: Anybody else?

Participant: I had a question. If you are driving to the office and you cannot claim that
mileage but it costs you to park your car there, can you claim the parking car?

Karin: No.

Participant: Wow

Karin: No. The only way that it would work is if lets say you went to your office but then
after that you went to see a client. Then you could work it that way.

Participant: Then it is the same as people who don’t have a business. They cannot claim
their gas or their parking. They pay their taxes.

Karin: Yes it pretty much comes down to as far as looking at expenses is they try to make
things equivalent. They don’t want to give an advantage to business owners but they also
want to make sure that you can write off anything that you are incurring because of the fact
that you are running the business.

Juliet: And during the business time - once you get to work, once you get to your office.

Karin: Yes. Anybody have any other questions on budget, cash flow?

Participant: I don’t have a question but it is really making me see. When I look at all this,
numbers just don’t do it for me. Give me people any day……

Karin: I know. I know.

Participant: And so it is really driving home for me that I need to have a book keeper and
I did not realize that before I did the course. I just didn’t think about it.
Karin: And you know what - that is worth the price of admission - quite honestly. And
that is what we are really trying to encourage some awareness around - that these numbers,
it is really important for you to have the information from these numbers. If you don’t like
numbers then chances are that you are not going to get into this stuff and then really your
chances of running a successful business drop dramatically.

So what we wanted to say is that you need to know this information and then you also need
to understand who you are and what is going to work for you. These kinds of exercises are
absolutely essential. If there is a huge distaste, it is an insurmountable and I won’t even say
block but just recognition, that somebody else can do this, might like it and probably really
likes it. And believe you me there are people who love this stuff including myself. Give me
an excel spread sheet and I am happy. I like the personal stuff as well too. To me there is
some satisfaction and it is just the cleanness. You can put the boxes in one spot and it is not
messy as far as people are complicated and messy but you can control a spread sheet

There’s two things. One is I really hope to encourage you not to be afraid of this stuff but
to understand the power that it can provide to you in terms of information. But also to say,
‘Look I am going to delegate the responsibility to do the detailed piece but I am not going
to abdicate the responsibility for understanding why these things need to be done and what
it can provide to me.

Juliet: And how you can use them afterwards.

Karin: Exactly. You don’t have to feel like you are giving up on anything by saying that it
is important to have a book keeper. It is really, really important to have this information so
that you are not operating in the dark. Like a few of you said, I don’t know how decisions
and how businesses can be run with out having this information. It is like you’ve got your
eyes are closed a little bit and you are saying, ‘Ok. There is money coming in and there is
money going out and somehow I am not going to the soup kitchen every week.’ But
probably somewhere there is a sense of the lack of control, the sense that something could
be tighter so that you can get ahead faster and with less stress and less aggravation.

And the same is you might be able to get a business to a certain level without looking at this
stuff in much detail but there’s no way that you are going to be able to grow a business
without looking at numbers with a pretty fine toothed comb. Because what will happen is
that at a certain point you will get to the stage where you need to decide whether you can
afford to bring on an assistant or whether it makes sense to hire Juliet to do some more
coaching on the marketing front because now you are ready to take the business to the next
level. Without looking at these numbers and looking at what the impacts are going to be and
what the potential impacts, then you may be laying out a whole bunch of money that it is
not to say it is a bad thing to do that but without having the plan and without seeing the
impact on the revenues and on the profit, then you could be spinning your wheels. The
bigger that the business gets when you get to that growth phase, then the more
opportunities there is for complete burn out - that you could be going into a whole bunch of
different directions.

Yes maybe you are bringing on a whole bunch of new clients and you are doing new
programs but you are actually not getting any further ahead financially. And that is why it is
important to look at the relativeness between what you are putting into the business versus
what is actually going to provide to you in terms of a profit.

Juliet: Unless it is going to reiterate what you are saying and I am thinking because I am
always thinking of the marketing piece here too and in terms of growing your business like
Karin was saying, if you really want to grow it and be successful and achieve your goals
you do need really specific and concrete goals and with that comes the financial goal. So if
you know you need to earn; you want to bring in $100,000 a year or something then you
need to look at what you are bringing in now and what you are going to have to do and
what are those action steps that you are going to have to take to bring it up to the $100,000.
Otherwise people just float along and don’t grow. And that is fine if that is what you want
to do. But a lot of people want to make more money and get stuck - it is very common to
get stuck at a certain level and not be able to go beyond it.

Participant: I did something I am not sure whether it is within your philosophy or not. I
couldn’t afford a book keeper. I have a client who was a book keeper and I asked her if she
wanted to barter. And she was thrilled. So I taught her analysis and reiki and reflexology
and she did my books.

Karin: Yes that is a great thing to spend a few minutes on. There are all sorts of
arrangements that can be struck. I have certainly done some bartering. It can work
beautifully or it can really be a disaster. So you got to be very careful that there is a very
clear agreement. I still recommend - the more recent ones that I have done is said: ‘well ok
this is my hourly rate and this is the package of services that I can provide’ and then they
would look at their hourly rate and the package of services that they are going to provide
because then we are using some sort of a objective benchmark. Otherwise it can get a little
bit blurry and then often there is a distortion of what the expectations were. So just be
careful.

Juliet: Well I propose to have it in writing even if it is just an email. It does not have to be a
formal legal agreement. It is just like something in writing. And just to acknowledge that
most therapists can do barter because it goes against the ethical guidelines.

Karin: The other thing that I should mention too is that from a tax perspective you are
actually supposed to impute the tax on the bartering as well too. So it gets a little
complicated so all these things you have to be careful about.

Karin: But there are ways to be creative with things and I think it is important to exercise
our creative powers as long as they are within ethical guidelines.

Any other comments. I am just looking at our time here. What I’d like to do is spend a little
time just talking about separating and integrating personal and business expenses. It
certainly isn’t in the scope of this program to get into a huge amount of detail on the
personal side of financial planning but pretty hard to not talk about that step when you are
in private practice and part of what happens with your revenues in your practice is to
support your personal lifestyle. So it is really important to not only have a handle on your
business finances but you also need to have a sense of what you want to achieve on a
personal front and what your personal expenses are. Because your business revenues not
only have to cover your business expenses but they may have to cover some or all of your
personal expenses depending on whether you are in a couple and there might be another
partner that is bringing in some revenue that will cover some of the personal expenses. But
it is certainly important as I imagine most of you are running your practice and using this
money to support yourself.

Juliet: Or a job - or a part time job.

Karin: That’s right . Or a job. That is right - exactly. But I imagine for most of you there is
a link between your business expense or your business revenue going to be used for
personal purposes. The two most important worksheets, the two most important tools that
you can use to get a handle on your personal finances are very similar in fact to what we’ve
talked about as far as your business expenses.

The first one is called the net worth statement which is essentially the same thing as a
business balance sheet which is just an accounting at a one point in time of what your
assets are and your assets are the things that you own personally. So that could be if you
own a house, if you have investments or RSPs or if you have a pension, if you’ve got a
vehicle - all of those things would be considered assets and then what they call the other
side of the balance sheet so to speak or the other side of your net worth statement is your
liabilities (loans, line of credit, mortgage).

There is a net worth statement on page 59 which is the summary of your assets. So you add
up your assets, you add up your liabilities and the difference between the two is your net
worth. On the following page is a spot where you can put in the details of each of the assets
or liabilities that you have. So this is what would be considered a very simple net worth
statement. The idea is to do this I would say once a year so that you can see where you
stand and to look at the success of any of the personal financial planning programs that you
would have in place which are mostly designed to increase your assets and to decrease your
liabilities. So this becomes a good tracking mechanism and also a way to be organized and
to be clear where you stand financially on a personal front.

The intersection between the personal net worth and your business is that in point no 8 you
can record the value of your private practice. So for instance, if you’ve got money in your
business bank account, that you are accumulating some savings in your business bank
account or if you own something through your business - some computer equipment, could
be office furniture for instance and if that has any kind of value then that is going to come
from your business balance sheet. You can carry that over to your personal net worth
because that is of value.

The other thing and I don’t know if this happens so much in private practice but there are
times when you can certainly in the financial field, when people are managing a client’s
investments and they were tired and they can what is called sell their book. So there could
be, I don’t know if there is succession planning or things like that that could happen with
private practice but there might be a value to your business. Or if you are creating books
and workshops there might be a value that is ascribed to the business that it could be sold
for a certain amount of money at some stage. I don’t want to get into big detail on that but
that is where you can see the inter relationship between your business and your personal
finances from an asset standpoint.

The other, I would say, the most important personal financial planning tool is your
spending and savings plan and again very consciously I don’t call it a budget but again you
could call it a budget. I think terminology is important to reduce levels of avoidance and to
look at this as more of an inspirational exercise as opposed to one of restriction. Very
important to look at what is coming into your personal financial life, so that would be your
income. It could be and then I am calling the first entry here your salary. That could be a
salary from employment but I would also recommend that you set up a regular salary from
your business into your personal account.

So ideally what I would suggest that you do is have an account that is really your business
account. It does not have to be a formal business name or a formal business account in the
way that the banks term business accounts. It can be but it could just be a separate checking
account that you put your deposits and your checks received from your private practice and
as much as possible you run as many expenses as you can through that account and that is
your business account. And then you can pay yourself a salary either monthly or weekly or
bi-weekly but try to get to a point and it might take a little bit if juggling initially but think
about your private practice as a separate entity that you are organizing at least over time to
gear it to paying you a regular income, a regular salary like you would get from any other
kind of employer. Then it becomes a lot easier for you to manage your personal finances.

Participant: Karin can I ask a question?

Karin: Of course.

Participant: If you have a home business, for things like shelter do you put it on your
personal spending and savings plan or on your business personal plan?
Karin: For those sorts of things usually what I would recommend is to put it, if you can is
to put it in proper proportions from an accounting stand point. From a pure cash flow stand
point like actually bank accounts, then I would generally run those home expenses, those
car expenses where there is only a portion that you are writing off for business purposes I
would put that on your personal.

Juliet: Because it is mostly personal.

Participant: What I am doing is I am taking money out of the business account putting it
into the personal account to pay those bills. Is that alright?

Karin: What you do is when you are figuring out your salary from your business you
know that those expenses - your home and your car expenses they are not going to be cash
outlays from a business standpoint. You are really going to pay those bills from your
personal account.

Juliet: All my income comes from my business. So I put it all in the business account and
then I take it out and put it in the personal account. And your expenses other than those
personal home expenses like car and your mortgage or rent or what ever it is - all the other
expenses that you use for your business, paying for your business should come out of your
business account.

Participant: I just realized something. I just had my car loan and car insurance come out of
my business account and I really shouldn’t be doing that.

Karin: It is better to put it through your personal account because you are probably
writing off less than 50% of it on the business, is that correct?

Participant: Yes. I think it is 35.

Karin: That being said it is probably better to do it through the personal account. It is not
going to make a huge amount of difference though if it is going to create a whole bunch of
accounting or banking issues. I wouldn’t fuss with it but just be aware that as long as you
are accounting for it in one of your cash flows either your business or your personal cash
flows you are fine. But to keep it clean I would have to run it through the personal.

Participant: I have another question.

Karin: Sure

Participant: Most of the books tell you that you should pay yourself first and you should
take 10% off of your net. So if I do that would that be considered part of my salary - that
10% plus I would add that 10% and then plus what ever I made for my expenses at home?


Karin: So the way that you would look at it on your spending and savings plan is that you
want to have enough coming from your business in terms of a salary that it is going to
cover your savings and it is going to cover your expenses. It is by no accident. The first
section of your expenses I actually have is savings.

Participant: OK. So then the retirement emergency fund and all of that would be on top of
that?

Karin: The rule of thumb is 10%. There is an argument - is it net income or gross income
- if you can do it on gross income that is even better but chances are that if you are starting
at in private practice and if you are just trying to get all of your expenses just make sure
that you are living within your means, then to have 10% of your gross is probably a bit
aggressive. So you could start with 10% of net that could go towards all of your different
savings objectives.

Juliet: Or if you are making a lot of money and are not spending too much you can do
20% or 30% in your savings.

Karin: Exactly. And I was going to say this exercise to start with is just to see where the
money is going. First of all, the most important thing is to make sure that your business is
living within its means and to make sure that you are personally living within your means.
That is priority number 1 because what will happen if you are not - if your business is not
living within its means and/or you aren’t personally is that that’s where you find, ‘Oh my
goodness, how come my credit card balance keeps going up or how come my line of credit
balance keeps going up?’ So the first step and that is why being really conscious of how
money flows in and out is imperative for any kind of financial plan and any kind of life
plan is to make sure that if there is any bleeding then you stop the bleeding and that if you
have debt, there is no shame in having debt, but make sure that you have a plan for it.

And just a little commercial here for those of you for whom debt is an issue my partner in
the Women’s Financial Learning Centre runs a really great program called The Debt Free
Challenge. The next class starts at the end of April - on April 27 - and it is a 12 week
program- you get together every two weeks. Sheila really helps people take control of their
debt and makes sure that they have a very tight spending and savings plan for their personal
finances so that any of the bleeding has stopped and that then you are well on your way to
then being able to increase your knowledge, get rid of the debt and then start focusing on
increasing your savings.

Just as an example, I know that they use the 10% rule of thumb but with your RSP which
is a way to save for retirement in Canada you can actually save 18% of your previous
year’s gross income. From a business perspective it would be your after expense income
but before taxes. That is pretty significant in terms of looking at how much potential you
have room to do some savings for retirement. 10% may or may not be enough for you
depending on what your goals are for retirement and what your cash flow expectations are.

Juliet: I like to say Financial Independence.

Karin: Yes I know. Juliet does not like the word retirement, I keep forgetting. Financial
independence - retirement - however you like to term it. But she is absolutely right. I prefer
the word financial independence myself. And this is where if you are not really sure about
where you stand financially - let’s say debt isn’t a problem but your personal finances -
you really don’t understand investing; you are not sure what financial independence is and
what it is going to take to be financially independent, to retire, if you don’t have a plan in
place for emergencies, those kinds of things then again another little commercial is we have
program called the Build Your Own Financial Plan program that really leads people
through the details of their personal financial plan - so your personal goals, your personal
cash flow spending and savings plan, debt management, investments, retirement planning.
That is a tele class programme that we have that runs for 6 weeks that starts April 29 and
we ‘meet’ over the phone every two weeks so you have time to work on the program in
between or to work on your worksheets in between. That program is $275 and runs from
April 29 to July 8. And the debt free challenge from April 27 to July 06. That is $225 up to
April 10 and then it is $275. If anybody wants any details on those you can email me or
Juliet and she will forward the information and I think a lot of you are probably are on the
Women’s Financial Learning Center website.

Juliet: Karin, Sheila’s course - that is a Vancouver-only course that’s right?

Karin: That is in Vancouver only, yes.

Participant: Which one?

Juliet: The Debt Free Challenge.

Participant: And which one would you recommend if you wanted to do both. One of the
things I definitely want to get debt free by the end of the year and I don’t know how to do
that. But I also need the other one as well.

Karin: What you could do is you could start with the Debt Free Challenge and then take
the Build Your Own in the fall that is a good sequence.

Participant: OK. Thanks.

Karin: Give me a shout and I can chat more about that with you if you like. I don’t want to
take up too much more time on that. We’ve only got a couple of more minutes. Anybody
has any questions?

Participant: I have a question.

Karin: Yes go ahead.

Participant: You were talking about debt. In this spending and savings plan sheet under
debt replacement it says credit card if paid off monthly put zero. I don’t get that.

Karin: The reason for that is if you are putting let’s say you are buying your groceries on
your credit card, you are buying you clothes on your credit card then what you want to be
doing, if you want to be putting that spending or those expenses into the appropriate
categories here. If you put what you’ve got on your credit card, the balance you’ve got on
your credit card as well as putting those expenses in the appropriate categories, you are
going to double count.

Juliet: It is really only if you are carrying a balance on your credit card and you are not
paying it off every month. If you are not paying off then put zero. So it is if you are
carrying over a balance.

Participant: I got it. Thank you.

Karin: Makes sense. Ok good. Another question?

Participant: Yes. I do have a question. With a book keeper what you are basically giving
your book keeper is your receipts of what you have charged your clients and your receipts
of what you have basically bought - bottom line -that is what you are giving the book
keeper.

Karin: Yes. You’ve got it.

Participant: And then they do all the rest of it. They do everything else?

Karin: Yes. Go ahead Juliet.

Juliet: I was just going to say it depends. Because Karin that is what your book keeper
does but my book keeper does a bit more. She also goes into my bank account and she has
online access. I put all my expenses on a credit card so it’s easy and she takes all of that and
then she makes sure everything balances. So she makes sure my bank account and my
credit card and everything balances as well. So there are no mistakes.

Karin: Yes. That is called an accounts reconciliation. And certainly that as far as
accounting principles is the correct way to do things from a business stand point. But you
can get away with having an accountant or a book keeper just track your revenues and your
expenses. And you don’t necessarily have to do the reconciliation to your bank account if
you don’t want to.

Juliet: But then you want to do it yourself because you want to make sure that there is no
mistakes or that the bank is making any mistakes.

Participant: I do that every month.

Karin: Let me just make one other comment here. Just to be really clear as far as delegating
the responsibilities to a book keeper, to an accountant certainly the past information, the
historical information you package it up and you can send it to them. But you still need to
be actively involved with the cash budgeting, the cash projections side of it. There are still
some numbers that will be important for you to be thinking about and you can use the
information that your book keeper has provided you in terms of your reports to look at
what you’ve done historically. But you want to make sure that you are still involved with
the planning function. And now you could do that with a financial planner if you want to
do that as well too. But you want to make sure that you are doing the planning function and
usually a book keeper or accountant is not going to take care of that part.

Juliet: Which means that when you get the reports you look at them.

Karin: Yes for starters and then you use the information after that. But the main thing is to
make yourself start looking at them and examining them and just kind of getting in with
numbers and getting used to what’s going on in your business. Then it will help you when
you start looking at them and saying, ‘What am I going to do with these numbers and how
am I going to plan them etc.?’

Participant: And what would be a usual, common price or fee that a book keeper would
charge?

Karin: $30 an hour.

Participant: For the year?

Karin: I am just checking. My sister who does my book keeping, she charges because I do
mine quarterly and I know Juliet and I differ on this one, I think she charges around $150
for a quarter.

Juliet: It really depends on how many transactions you have. If you have 100 receipts
versus someone who has 10 receipts, obviously you are going to be paying more. Or if you
have more transactions in a month in terms of an income obviously you are going to be
paying more as well.

Karin: Good. OK. We are at 5.30. Certainly if anybody has any questions they can hold
them for next time or you can email them to Juliet or me and we’ll field them at the next
call. Hopefully all of you will be able to dial in to the next call. But there is an opportunity
to hear the audio although Juliet has mentioned many times that it works a lot better if you
dial in, so please dial in. You’ve got one more chance to this course to have any of your
questions answered and I highly recommend that. And there isn’t a lot of reading for the
last section again. So go back, work on some of the numbers, get into those numbers if you
can. If you’ve got a question while you are working on it just fire it off to us too so that
you don’t forget or jot it down. Don’t struggle with the stuff that is hard, we are here to
help make this easy. We are trying to simplify it as much as possible. And a couple of you
picked up the little spots where we were trying to confuse you. So there are a few of those
opportunities as well. But really just use that as much as you possibly can. And of course
neither Juliet or I are going anywhere after the course so there is always opportunities to
connect with us in other courses or to do coaching and financial planning and that kind of
thing as well too. But use us - that is what we are here for.

Participant: Ok thank you

Participant: Bye

Participant: Thanks

Karin: Talk to you next week.

				
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