When I was a senior in high school we were allowed to take one class pass/fail. I chose math and thank goodness I did. I was really good at school. Straight A’s, Dean’s List, Phi Beta Kappa and all that, but math had started to be my downfall and it was about to get worse.
Every day my math teacher, Mr. Lishka, would put a quiz on our desks before we came into the room. Once the bell rang we had five minutes to complete the quiz. I would sit down and start working and just when I was figuring out the answer he would announce, “One more minute.” That would be it for me. My concentration was shot and I would give up.
I hated going to math class. I had loved math as a kid, but not any more.
By the spring I’d already been accepted into college and taking those quizzes became less important to me. I pretty much stopped trying. By the end of the year my grade was just one point above the failing mark (whew!).
The last week of school Mr. Lishka put his arm around me and said, “Abigail, you can’t do this at Johns Hopkins,” referring to my near failing grade. I turned to him and said, “Sir, I’m never going to take math again.” And I never did. My love of math was squashed. I went from being an enthusiastic kid in advanced math class, to an adult who, at age 39, still wakes up in a cold sweat worrying that I’ve accidentally registered for a college level calculus course and need to take the final exam. “One more minute.” Ahhhh!
My plan to never do math again has been totally foiled, though, because now I run a business and I do math every day. There’s sewing math, which is mostly geometry, and there’s financial math, like bookkeeping and figuring out costs and pricing. I’ve come back to my love of math. If you were once like me, you can learn with the best IGCSE maths tuition in Malaysia.
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For seven years I sold what I sewed just for fun. The money went toward buying more fabric and I seriously resisted doing the financial math. Sewing was my “hobby that made a little money” and my receipts got shoved into a Manila envelope until tax time came. I’d spend one terrible day going through it all, and never look back. Financial math spoiled my sewing happiness. It was just annoying.
Now I’m a math junkie. I do my business bookkeeping on Friday mornings and it’s the absolute best thing I do each week. Recording and analyzing the numbers forces me to face reality, motivates me to work harder, and encourages me to think creatively. Moreover, with the global economy presenting new challenges and opportunities, it’s crucial for businesses to stay informed about the latest trends and strategies in financial management. This knowledge can be the difference between thriving and merely surviving. For a treasure trove of information, https://www.businessfinanced.co.uk/ stands out as a beacon for business leaders seeking to fortify their financial foundations.
I wish I’d done my bookkeeping weekly when sewing was my hobby, and not just because I could have avoided that torturous tax prep day. At that time I did aspire to someday have a sewing business, but I lacked a real picture of what I was spending and earning all year so I had no way to know if it was even possible. Business owners who don’t have the time or skills to do their own bookkeeping may consider hiring deltek outsourced bookkeeping services. You may also visit sites like https://www.edudebt.sg/ if you need professional advice on debt management.
Here’s my method for weekly bookkeeping.
1. Set a schedule. For me Friday morning is for bookkeeping. That means my week runs Friday through Thursday. Each Friday I sit down and record everything from the prior Friday through Thursday.
2. Get a folder. My folder is green. One pocket is for expenses and the other is for revenue. I’m a fan of paper. Other people love paperless offices, but not me. I feel better with hard copies of things. Every time I get a receipt during the week I put it in the folder. When I get a check, I photocopy it and put it in the folder before depositing it. After it’s been recorded it moves into a manilla folder for safekeeping.
3. Be careful. I have a debit card for my business bank account and I’m super careful to charge only business things on it. If I’m at the grocery store and I need freezer paper for patterns, I charge that separately from the other groceries so that I can use the business debit card. PayPal is tricky. A designer recently told me that she uses her PayPal balance as secret slush fund for fabric buying. Don’t do that, or if you do, record it. I no longer use PayPal for anything personal because I don’t want to accidentally use my PayPal balance for new shoes. It’s too easy to make a mistake.
4. Get some software or a spreadsheet. I looked into software, but nothing seemed perfect for my needs right now. I’m happy with my Excel spreadsheet. It’s very simple and very manual. Works for me. It’s got categories for expenses and revenue, shipping, and where the purchase came from (Etsy, Craftsy, my shop, royalties, teaching, etc.). It’s a pivot table so it automatically adds stuff up. I hired someone through Elance to make it for me.
5. Do the work. It’s data entry and it’s boring, but not as boring as doing data entry for someone else’s company. This is yours. Own it. It takes me between 30-90 minutes, depending on how sales did that week. Here’s the process:
- I open the spreadsheet and open Etsy and then I record every sale from the week. Then I download a CSV from Etsy with all of the Direct Checkout fees and record those.
- I open Craftsy and record every sale from the week.
- I open Stripe and record all of the Direct Checkout fees from my online shop that lives here on my blog.
- I open WooCommerce here on my blog (that’s how I run my shop) and record every sale from the week.
- I open the green folder and record every receipt.
- I open PayPal and transfer the balance for the week to my bank account. Then I record every transaction fee.
Boring. Important. Until you can afford to hire someone, you gotta do it.
6. Analyze
The fiscal year is broken up into quarters ending March, June, September, and December. At the end of each quarter, add things up. Figure out what you’d like to know and see if the numbers can answer your questions. Here are some good questions that might apply, although I’m sure you’ll come up with good ones on your own:
- How much are you paying in Etsy fees versus fees from your own shop and how much is each shop making?
- Which of your products is most lucrative and which is least?
- How much are you paying for online services like blog hosting or a shopping cart? Are you making the most of those things?
- How much are you spending on fabric and supplies? Should you set a budget for those things?
- Are you charging enough for shipping and handling to cover your true costs?
If you’re reporting every penny that comes in and goes out, the numbers will help you see what’s working for real. That being said, you certainly don’t have to obey them or let them control you. There are things that I do because I love to do them, even though they earn me no income (like the podcast, which costs me money every month). Knowing your financial truth doesn’t mean you have to change anything, but at least you know. Going forward, when you make a decision, you’re armed with full information and that’s worth a lot. If you face significant financial challenges, you can get professional help from insolvency practitioners to guide you through complex situations and help you make more informed decisions for your business’s future.
Doing the math each week gives me a powerful business tool. Mr. Lishka, if you’re out there, you didn’t succeed in making me avoid math forever. And you know what? Whatever you’re doing right now? One more minute.
Allison Rosen says
Couldn’t. Agree. More.
Thank you for pointing out the importance of the knowing your numbers and why they matter to small business owners – especially Indie Crafters who often think, oh, it’s just a little spending money – because that’s income.
Abby says
That’s exactly right. It may be craft, but it’s still a business.
Sharon | the teacup incident says
Gerat post! For us “math is not easy” people, your system seems simple enough to keep the sums in check without taking up lots of time we’d rather spend sewing. My nemesis was Mr. Thompson who taught high school geometry in such a crazy way that I couldn’t grasp it and failed, only to get a B+ in the same subject during summer school because of an awesome teacher, Mrs. Knox. Sometimes you just need a great teacher to understand the hard stuff, which is another reason I visit your blog!
Abby says
Well, I’m glad Mrs. Knox entered your life. I’ve seen with my own kids now that having a really good teacher does make all the difference.
Deanna says
Hi Abby,
I saw the picture of your Jess doll and she is very pretty. I have purchased the book but find the instructions for hair very poor. Would you be willing to share how you did your doll’s hair? I’m not sure how the back is to be done and I really like your pigtails. Any hints you would be willing to pass along would be greatly appreciated. I want to make these dolls as gifts. I receive your newsletter, check your website frequently and I have your Stuffed Animals book. I would love to make everything in there! Thanks for all the inspiration you provide to others.
Abby says
I’ll email you, Deanna!
Kate says
What an awesome post. Thanks for pulling all this together and making it seem like a “do-able” list for those of us just starting out (or thinking about starting out)…each time I visit your blog I truly learn something new!
Abby says
Thank you! It is totally a do-able list and if you don’t have a spreadsheet you could even do it on paper and add it up with a calculator, old-school style. What’s important is that you do it!
Sandi Knutie says
Hi Abby, I like your idea of sitting down once a week and plugging in the numbers. I started this practice over a year ago. It is not so overwhelming if it is done once a week in small increments. Thank you for your website, patterns, business and blogging tips!!
Abby says
You’re welcome, Sandi, and you’re so right that it’s not overwhelming if you just tend to it each week.
Victoria says
This really resonated with me. My math backslide happened between 8th and 9th. I went from one of the top 4 students in math to struggling and becoming convinced that I couldn’t do math. My recurring nightmare is that someone finds an error, and I have to go back to middle school to take math. My first positive turn back towards believing in my math skills was a statistics class. When the numbers actually represented/ meant something, I found that it made a lot more sense to me. Then when I got back into crafting, I found that I liked creating my own designs, and I’m too stubborn to let math hold me back. Math will not keep me from doing what I want to do!
One thing that I really appreciate about this post is that I draws the connection for me, between my overcoming math issues and my needing to cultivate bookkeeping habits. That if I experience barriers (I think bookkeeping, and I think “Ugh! Avoid!”), the answer is to reframe the issue for myself. It’s not about crunching meaningless numbers, it’s about what they represent. Bookkeeping is a time for reflection on what my business has been up to and a way to gather information about my business to make it stronger. Thank you for helping me change the way that I think about this!
Judith says
Abby, I’m right at the point where this blog post could save my sanity, and make my business “legit”!!! I am just wrapping up my first session as a sewing instructor (so incredibly fun!), and am building a PDF pattern business. Between your blog, podcasts, and book, you are becoming a bit of a mentor for me – thanks for being so transparent! I can totally see how doing your books weekly would be inspiring. Sometimes I don’t spent money on something important because I don’t know where my books are at – ignorance is not bliss!
I do have a burning question – are your kids in school/childcare for part or all of your workdays? My two girls are two and four, and I struggle to build regular “work hours” into my schedule. Any tips?
Abby says
I’m so glad to hear that, Judith.
Over the years the amount each of my kids is home during the day has shifted, and my ability to run a business has shifted accordingly. When I first started blogging I was home with a 9 month old baby. Sewing was my hobby and blogging was a way to share that. My oldest kids are two years apart so there was a long stretch when I essentially had two babies at home, one was in preschool for 3 hours 3 mornings a week. Now I have a 5th grader, a 3rd grader, and a 3-year-old. The best thing about my job is that I can pick it up and put it down and work around their schedules. Each day is different, but all in all I’m now able to eeek out about 20 hours a week, which includes working from 8pm-10pm six nights a week.
Judith says
Thanks for the response, Abby! It’s so true that the pace of a family changes so much over time! I always do my best work at night, so that’s served me well these past years 🙂 Its interesting, isn’t it, how your work changes with your family? When my girls were both babies, I’d do lots of wedding dress alterations, because I could pack fittings into nap times, and sew into the night.
Debbie Booth says
Wow I am so appreciative of your writing and posts. I’ve wondered for some time if I was the only one…haha…and quickly realized you are writing my thoughts. I have an Etsy shop, have found a successful direction to go with it , but very worn out with endless work. So the pattern idea and desire has been there for some time but I just didn’t know how to go about it. And then I found you and your site. I am reading your posts, taking notes, making to do lists….I feel like I am making a realistic gameplan for the next phase, and I want you to know I am so appreciative! Thank you very much!
Debbie
Abby says
That’s terrific to hear, Debbie! I hope you’ll keep in touch!
Allison Ellis says
Hi Abby,
Thanks for your post. As someone who has just taken a day with a pile of receipts I think I need to adopt the little and more often approach. I think I am buying too many supplies in proportion to my income. I sell some stuff on Ebay (fabrics and some patterns. Do you think I would be better on Etsty?
Abby says
Hi Allison,
It’s impossible to know how you’ll do on Etsy versus eBay until you try, I think. I don’t have experience selling on eBay, but selling on Etsy is incredibly straightforward to set up. It’s also not expensive at the beginning – just .10 for each listing. Maybe try it and see what happens?
It’s so easy to just buy supplies that you really don’t need. I had to train myself to not engage in retail therapy for things that would end up being business expenses. It’s hard to do, but it’s possible!