I have a photographic
memory. I keep all the details of the business in my head. I do have a notebook
where I record invoices and orders and once every couple of months I do a profit
In the first quarter, our
business had $18K in sales. Now we have $87K and I think we’ll reach $150K by
the middle on next year. I still keep everything in my head but I have to admit
some things are slipping through the cracks.
Finally, I gave in and we
hired someone to do the accounts. He slaved away and after two months had
things somewhat under control. He found over $12K in unpaid bills including
demands for the local and federal tax offices. Together these came to over $30K;
we don’t have that kind of cash on hand.
Two days later we saw the
first set of accounts since we started the business. We had lost over $90K, were
selling at least half our products at a loss, and had not paid state sales tax
for three months.
I was astonished. I priced
all my products myself and thought we were making good profit since we had cash
in the bank. I was also sure I had paid the tax bills.