Business Basics Day 3: Basic Bookkeeping & Monetary Tips

Don’t fall asleep on me yet! I know not everyone shares my enthusiasm for spreadsheets but trust me, these are going to save your life come tax time. Unfortunately us yoga teachers are not exempt from administration and I’ve found that the easiest way to operate is to stay on top of it. Firstly, I suggest keeping your invoices in separate ‘buyer’ files for each financial year on your computer and storing all your receipts of business deductible expenses in an envelope or folder.

First step, set up a spreadsheet for ‘Invoices Raised’ and a separate spreadsheet for ‘Expenses Incurred’ by financial year. These spreadsheets provide a summary for you and your accountant of all the money you have earned and spent. Here is an example of spreadsheets I have setup for my own business:

INVOICES RAISED

Date of Invoice	Invoice Number	Name of the ‘buyer’	Description of services	Amount charged	Money Received
4/5/16	INV00001	(Business name)	2 x 60 minute yoga classes	$100.00	Yes
7/5/16	INV00002	(Business name)	1 x 45 minute corporate class	$75.00	No
11/5/16	INV00003	(Business name)	3 hour Yin workshop	$200.00	No
			Total	$375.00
			Money currently still owed	$275.00

EXPENSES INCURRED

Date Purchased	Description of expenses	Rent	Equipment	Education	Insurance
4/5/16	Weekly rent of 123 Bourke Street	$100.00
7/5/16	Yoga Mats and Straps		$300.00
11/5/16	Ana Forrest Workshop			$250.00
12/5/16	Professional Indemnity & Public Liability				$330.00
	Total	$100.00	$300.00	$250.00	$330.00

I recommend updating these spreadsheets monthly, because not only are these spreadsheets a tax lifesaver they are a great way to track how much money you are earning and spending. Which leads me nicely into my next point.

If you work as an independent contractor then you need to pay your own taxes (this is different to if you were an employee, where your employer withholds tax for you and pays it to the government on your behalf). I suggest creating a separate bank account and saving money weekly, fortnightly or monthly for your tax bills.

Here are some other helpful tips that I’ve learnt (sometimes the hard way) along my yoga teaching journey:

• Make sure you earn enough money to live without too much financial strain. Don’t be afraid to find a part-time job to fill in income gaps until you can replace it with teaching income.
• Don’t sell yourself short. Set your hourly rate and only take less if you can honestly justify it. Keep travel time and the time spent planning your classes into consideration.
• Ensure you have enough money to pay your bills on time and set yourself reminders. Interest and penalties on bills can sometimes be hefty so anticipate when your bills are going to come in and put money aside for them.
• Monetary debt can be stressful, I recommend skipping out on credit cards unless you are 100% sure you can pay the money back by the due date. Credit card interest rates are some of the highest interest rates going around.
• If you rely heavily on your car, make sure that you get regular routine services and checks. There’s nothing scarier than receiving a $2000 bill out of the blue!
• As naturally generous as us yoga teachers are, I urge you to be very selective with donating your time. Our profession demands that we are constantly giving, both physically and emotionally. Though donating your time and sharing yoga with those who are not able to access it is one of the most rewarding things you could do as a yoga teacher, make sure you look after your own wellbeing first.
• Continuing to build on your professional development is an important and exciting part of being a yoga teacher. There are endless amounts of workshops and extra training options out there, but be discerning and evaluate these closely. Attending these may mean sacrificing teaching income.

For more complicated tax issues or any other tax advice, I recommend speaking to your accountant as legislation changes frequently.

Business Basics Day 3 Workbook