Deleted
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Post by Deleted on Jan 14, 2014 16:38:56 GMT -5
Out of curiosity, how do you get "paid" for CC, food stamps and WIC sales? How do you get the cash?
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dannylion
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Post by dannylion on Jan 14, 2014 16:45:06 GMT -5
I'm still stuck on "I do not knit checks anymore."
I can knit. Have I been missing out on an opportunity to turn my hobby into cash?
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Rocky Mtn Saver
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Post by Rocky Mtn Saver on Jan 14, 2014 20:16:31 GMT -5
Well, now I'm really curious where Looney's unaccounted-for $12k is going! Could part of that have to do with taxes? How could you not know where $12,000 goes every month?
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Sum Dum Gai
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Post by Sum Dum Gai on Jan 14, 2014 20:19:27 GMT -5
Should be no sales tax on food, but that might not be everywhere, so it could be some of it. Anyone know what the sales tax on food is in Philly?
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milee
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Post by milee on Jan 14, 2014 20:24:10 GMT -5
Rocky, my guess is that the "missing" $12k is a combination of underestimating COGS and also forgetting a large list of small incidental expenses. From insurance to water to advertising to supplies, etc. that little stuff adds up. And unless you're tracking your business income and expenses, it's really easy to get caught thinking you're earning much more than you are. It's like gamblers, studies have shown it's human nature to remember the wins and forget the losses.
As for what she calls the CC loan, it's interesting to hear Loony's used that avenue. One of those companies was featured on Shark Tank a few weeks ago and they're a little like payday loans for small businesses. Slick loansharky guys lending small amounts to small businesses that can't get loans from banks. The cc loan business gets a return not only from the high rates charged on the loan, but because they take over the merchant card processing so they continue to make a return off the card processing (normally at higher rates than can be obtained elsewhere) after the loan is paid off. Interesting model for the loaner, but horribly high cost of capital for a small business.
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Sum Dum Gai
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Post by Sum Dum Gai on Jan 14, 2014 20:28:03 GMT -5
I'm pretty sure she's underestimating her COGS. She said 45k in sales and 26k in COGS. That's a huge markup on food. 7/11 doesn't markup that high.
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Opti
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Post by Opti on Jan 14, 2014 20:28:11 GMT -5
"I'm still stuck on "I do not knit checks anymore." "
kite?
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Rocky Mtn Saver
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Post by Rocky Mtn Saver on Jan 14, 2014 20:33:59 GMT -5
Should be no sales tax on food, but that might not be everywhere, so it could be some of it. Anyone know what the sales tax on food is in Philly? There would be sales tax on non-food items, though. I was thinking more about business taxes. Looney said that she 'writes a check that makes her cry' quarterly.
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Rocky Mtn Saver
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Post by Rocky Mtn Saver on Jan 14, 2014 20:35:41 GMT -5
I'm pretty sure she's underestimating her COGS. She said 45k in sales and 26k in COGS. That's a huge markup on food. 7/11 doesn't markup that high. Agreed. Probably an underestimation of inventory costs and forgetting other overhead expenses. That's a lot of $$ to forget about, though! Wow.
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Sum Dum Gai
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Post by Sum Dum Gai on Jan 14, 2014 20:36:52 GMT -5
How much could her business taxes be if there's no profit beyond the $4k a month she pays herself? From her posts it sounds like the business barely breaks even after paying her. She's bouncing checks, getting CC loans, etc. If the business was actually making $12k a month after paying her salary she wouldn't need to do that stuff. If it's breaking even after paying her, she's making $48k a year in profits, so her taxes should be pretty low.
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Rocky Mtn Saver
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Post by Rocky Mtn Saver on Jan 14, 2014 20:39:13 GMT -5
For all we know, she's declaring all her sales as profit! All I know is she recently remarked at writing big tax checks every quarter. Perhaps Looney can fill in the blanks?
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Sum Dum Gai
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Post by Sum Dum Gai on Jan 14, 2014 20:43:58 GMT -5
If she's giving the IRS the same numbers she gave us they're taxing her on $16k in profits monthly, which is going to sting a bit.
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tloonya
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Post by tloonya on Jan 15, 2014 11:14:52 GMT -5
2 years, 4 years, doesn't matter. Is your business checking account actually growing by $12,350 every month? If not, you aren't being honest with yourself about your actual numbers. If it is, awesome, raise your salary to $10k a month and start slapping people with wads of benji's. No, it is absolutely not. Why should it?
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tloonya
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Post by tloonya on Jan 15, 2014 11:17:50 GMT -5
Should be no sales tax on food, but that might not be everywhere, so it could be some of it. Anyone know what the sales tax on food is in Philly? philly tax is 7% but we don't have food tax. I pay only if I sell flowers and bottled water.
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Deleted
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Post by Deleted on Jan 15, 2014 11:17:50 GMT -5
2 years, 4 years, doesn't matter. Is your business checking account actually growing by $12,350 every month? If not, you aren't being honest with yourself about your actual numbers. If it is, awesome, raise your salary to $10k a month and start slapping people with wads of benji's. No, it is absolutely not. Why should it? How do you get WIC, CC and Foodstamp money?
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Rocky Mtn Saver
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Post by Rocky Mtn Saver on Jan 15, 2014 11:18:37 GMT -5
2 years, 4 years, doesn't matter. Is your business checking account actually growing by $12,350 every month? If not, you aren't being honest with yourself about your actual numbers. If it is, awesome, raise your salary to $10k a month and start slapping people with wads of benji's. No, it is absolutely not. Why should it? Because according to the income and expense numbers you just provided, your business has $12,350 extra at the end of each month. Party!
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tloonya
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Post by tloonya on Jan 15, 2014 11:20:32 GMT -5
Out of curiosity, how do you get "paid" for CC, food stamps and WIC sales? How do you get the cash? How do I get paid for cc? I don't... Cash? People take it out of their pockets and giving it to my hand or placing it on a scale...
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Deleted
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Post by Deleted on Jan 15, 2014 11:21:34 GMT -5
Out of curiosity, how do you get "paid" for CC, food stamps and WIC sales? How do you get the cash? How do I get paid for cc? I don't... Cash? People take it out of their pockets and giving it to my hand or placing it on a scale... Not cash, credit card.
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justme
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Post by justme on Jan 15, 2014 11:21:52 GMT -5
"I'm still stuck on "I do not knit checks anymore." " kite? That's what I assumed it was.
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milee
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Post by milee on Jan 15, 2014 11:22:56 GMT -5
Loony,
Archie is trying to figure out how you get paid because it could explain some of the differences in what you are seeing and reporting here.
You do get paid for cc - my guess is the merchant account processor deposits those payments directly in your account on about a 3-5 day lag and you get a weekly or monthly report to reconcile your records to the deposits.
As for the WIC and Foodstamp money, how do you get your cash for that when a customer gives you their stamps or swipes their card? Similar to how you get your cash/deposit from ccs?
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tloonya
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Post by tloonya on Jan 15, 2014 11:29:56 GMT -5
Loony,
Archie is trying to figure out how you get paid because it could explain some of the differences in what you are seeing and reporting here.
You do get paid for cc - my guess is the merchant account processor deposits those payments directly in your account on about a 3-5 day lag and you get a weekly or monthly report to reconcile your records to the deposits.
As for the WIC and Foodstamp money, how do you get your cash for that when a customer gives you their stamps or swipes their card? Similar to how you get your cash/deposit from ccs? My head hurts! Merchant account, yes. I have a scanner and I scan my WIC checks directly into my bank account. Foodstamps same as cc. Except they do not take percentage.
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Rocky Mtn Saver
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Post by Rocky Mtn Saver on Jan 15, 2014 11:31:23 GMT -5
"I'm still stuck on "I do not knit checks anymore." " kite? That's what I assumed it was. But knitted checks are so much more interesting...
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Wisconsin Beth
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Post by Wisconsin Beth on Jan 15, 2014 11:32:40 GMT -5
That's what I assumed it was. But knitted checks are so much more interesting... Are they cashmere? soft, fluffy baby yard? wool?
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Deleted
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Post by Deleted on Jan 15, 2014 11:36:01 GMT -5
Loony,
Archie is trying to figure out how you get paid because it could explain some of the differences in what you are seeing and reporting here.
You do get paid for cc - my guess is the merchant account processor deposits those payments directly in your account on about a 3-5 day lag and you get a weekly or monthly report to reconcile your records to the deposits.
As for the WIC and Foodstamp money, how do you get your cash for that when a customer gives you their stamps or swipes their card? Similar to how you get your cash/deposit from ccs? My head hurts! Merchant account, yes. I have a scanner and I scan my WIC checks directly into my bank account. Foodstamps same as cc. Except they do not take percentage. What do you spend that money on? You said you spent all of your cash collections on food to sell. What happens that CC deposits and WIC checks when they get to your bank account? Also, what about food stamps? You didn't say how you get paid for those.
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milee
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Post by milee on Jan 15, 2014 11:37:16 GMT -5
Arch, I think the WIC is a check. Sounds like those are a direct deposit. When the customer gives her the WIC check, she scans it and it gets deposited into her account.
Food stamps are on a debit card, which scans and deposits like the ccs - merchant account.
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Rocky Mtn Saver
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Post by Rocky Mtn Saver on Jan 15, 2014 11:38:31 GMT -5
What do you spend that money on? You said you spent all of your cash collections on food to sell. What happens that CC deposits and WIC checks when they get to your bank account? Excellent question!
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Deleted
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Post by Deleted on Jan 15, 2014 11:40:12 GMT -5
Arch, I think the WIC is a check. Sounds like those are a direct deposit. When the customer gives her the WIC check, she scans it and it gets deposited into her account.
Food stamps are on a debit card, which scans and deposits like the ccs - merchant account. oops. I missed it. She did mention food stamps.
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dannylion
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Post by dannylion on Jan 15, 2014 11:42:11 GMT -5
That's what I assumed it was. But knitted checks are so much more interesting... I was really hoping it was knitted checks and Loony had stumbled upon the secret the ancient alchemists had sought for so long but never found.
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Deleted
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Post by Deleted on Jan 15, 2014 11:51:00 GMT -5
But knitted checks are so much more interesting... I was really hoping it was knitted checks and Loony had stumbled upon the secret the ancient alchemists had sought for so long but never found. Legally, a check could be knitted. A check need not be on paper to be valid.
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dannylion
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Post by dannylion on Jan 15, 2014 12:03:58 GMT -5
I was really hoping it was knitted checks and Loony had stumbled upon the secret the ancient alchemists had sought for so long but never found. Legally, a check could be knitted. A check need not be on paper to be valid. Yes, I know that. It was the possible implication ('cause it was Loony, after all) that somehow the financial substance behind the check was knitted into existence as well that was so tantalizing.
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