I believe I saw a thread on this same subject matter. But, I have not been able to located it. Anyway, I was wondering how some of the VA handle money once they receive a payment from a client.
1. Do you designate a certain salary? If so, based on what?
2. Do you just spend it on whatever you want?
3. Do you replenish your supplies needed to do your job?
4. Do you create a monthly budget for business expeses?
I welcome all your thoughts and opinions. Thank you.
:huh2:
1. Do you designate a certain salary? If so, based on what? Yes I draw a monthly salary and move the funds from my business to personal checking account. I have mostly retainer clients but I do take a percentage of my NET earnings/
2. Do you just spend it on whatever you want? Yes, I tread this as if I was drawing a salary from a JOB
3. Do you replenish your supplies needed to do your job? Yes, my office is always fully stocked with everything I need. I also make sure that I have a supply of marketing materials too.
4. Do you create a monthly budget for business expenses? Yes, I have budgeted for business supplies, networking events, continuing education, utilities and general business expenses.
At the moment I have a rather large credit card debt to pay off (took a last minute trip to the UK and Spain last year for my sister's wedding!) so I tend to send most of my funds over to that. But once that's done I plan to set myself a salary and stick to it.
I don't have a budget for supplies, just buy them as and when required.
This was a great question and very interesting to see the replies so far -- I completely know about paying off credit card debt ...
1. Do you designate a certain salary? If so, based on what? Because I have just recently (last two months) had honest-to-goodness client revenue, I haven't decided on what my salary should be. I'm thinking of taking 75% of what I make monthly and leaving the other 25% to grow my business' assets. Not sure this will be my plan, but it's what I've stipulated in my business plan.
2. Do you just spend it on whatever you want? Hmmm, dangerous territory. I wouldn't necessarily say I would spend my salary on anything I wanted. I did buy myself three new dresses and a new pair of shoes last week , but I consider that all part of doing my job and looking good while doing it .
3. Do you replenish your supplies needed to do your job? I actually haven't had to replenish my initial purchases, for the exception of ink. I had to "borrow" money from our personal account to get started with business cards and a few other supplies.
4. Do you create a monthly budget for business expenses? I have a section in my business plan where I stipulate what my monthly expenses are, such as networking events, gas charges, (for meeting with local clients), belonging to the ONLY virtual assistant directory that matters, etc.
I loved this mini poll. I look forward to seeing replies, because that's how WE all learn!
Thank you for your responses. They are very informative. Some of you sound so organized. I am still working on that aspect. I am coming along. The whole juggling at of being a mom and full-time employee, I must get organized to make this work for me.
Setting a salary makes complete sense. I know it be a while for I can do that myself BirdieJ but I definately look forward to it!
Xpert Business Support, I agree looking the part is very important. I say you spend your earnings wisely!
leedrozak I will definately have to open and business account to transfer the money over. Otherwise, I will have things all mixed up. Also, budgeting for network events and transportation cost is an excellent idea.
Wow, my horizon is expanding! Thanks so much for your responses.
I just answered another post but think this bears repeating in this thread. Do you have a business plan? Take the time to create a business plan. You will find many free resources to help you create the business plan. The plan is just that...a plan. Once you go through this process you will be really ready to start a business. You will have to answer the hard questions necessary to be in business and be successful.
I clearly understand the purpose of a business plan. However, the thread is about specific sectors on how people handle their earned income from their VA business. As you can read, there are various ways that people handle their profits. Personal v. Business.
This is an open discussion to share thoughts and ideas.
Thanks for sharing.
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Sharetha Newsome, Principal
BAU Management and Administrative Services
Earned Income-Personal v. Business
, but I consider that all part of doing my job and looking good while doing it 
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