Keeping track of the finances
of a dojo is of the utmost
importance, yet it is likely
that few dojo (Uechi-ryu or
otherwise) actually have a
clear picture of their financial
situation on paper at any
given time.
Keeping
track of income and expenses
is relatively easy to do if
approached with the following
common sense method.
The
simplest way to keep your
'books' is to use a standard
split entry bookkeeping system,
here's how:
1)
Get a ledger, usually you
can find these in any department
store or pharmacy selling
stationary. If this is not
available then a simple notebook
or scribbler will do. With
a ruler and pen draw a line
vertically down the center
of the pages.
2)
Get a black pen and a red
pen. The black pen is your
friend while the red pen is
your enemy.
3)
Get 12 (twelve) large manila
envelopes. I suggest manila
as they are a bit stronger
even after normal wear and
tear. Mark each envelope with
a month, one month for each
envelope.
4)
Take your ledger (or notebook)
and on one page at the top
of the left column write the
word 'Income'; on the top
of the right column write
the word 'Expense'. Put the
month on the top of the page,
always start a new page for
each month. This is your balance
sheet.
5)
In the left column with the
black pen (your friend remember?)
mark down any money you have
coming in. Only write this
down AS IT COMES IN. Never
speculate on what you would
normally bring in. Be sure
to write down the amount,
who gave it to you, why they
gave it & when.
ie. $45.00 | Bob Smith
| Dues | Aug. 01
Be
sure to give a receipt for
any money that comes in, have
the other party sign it as
well. You can get your carbon
copy receipt book at the same
store you bought your ledger.
6)
In the right column with the
red pen (your enemy), write
down all bills and expenses
that you have to pay. As the
bills arrive (say the light
bill) write it down in the
right column much the same
way as you did for the left
(income) column.
ie. $38.76 | Light
bill | Aug. 01
As
you pay the bills you can
put a check mark beside the
entry. Take your paid receipts
and original bills and put
them into the manila folder
with the corresponding month.
It
is that simple. As the money
comes in you mark it down
in black with its information.
As the bills come in, you
mark them down in red with
its information. As you pay
the bills put a small check
beside the entry.
When
you come to the end of the
month you should total the
amounts up at the bottom.
a)
First total the left (income)
column up; this is done in
black. This shows the monthly
income the dojo is bringing
in.
b)
Now total the right (expense)
column up; this is done in
red. This shows the monthly
expenses the dojo is incurring.
c)
Now subtract the red from
the black, the remainder (should
be a positive number) is the
profits your dojo has for
that month. If the number
is a negative then you have
higher debts than income and
need to re-evaluate both sides
of the balance sheet.
d)
If your red entries are not
all checked than you have
not paid all your bills for
the current month yet. These
entries will carry over and
become the first entries on
the expense column for the
following month. The original
bill goes in the envelope
of the month you received
it, while the paid receipt
goes in the envelope of the
month you actually paid it.
The
envelopes are important as
when you file your yearly
taxes, your accountant can
easily sort through the months
as you in fact have already
arranged the receipts ahead
of time!
Following
this simple method of bookkeeping
you are sure to have a clear
monthly picture of your dojo
income and expenses.
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