Texas Investment Network


Recent Blog


Pitching Help Desk


Testimonials

"We have already had one investor for $25K, and another who is very involved in the food business, who could be a funder on a much larger level. So we are very pleased, and offer our thanks."
Bruce J.

 BLOG >> May 2022

Expense Journaling [Management
Posted on May 25, 2022 @ 12:55:00 PM by Paul Meagher

A problem I run into this time of year is I start generating farming expense receipts at a more rapid pace. I end up throwing them into a pile to organize for accounting purposes later (i.e., shoe box accounting). This usually results in a long accounting process when I do my year end income tax and sales tax returns where you are trying to remember what certain receipts were for, you can't figure out the date of the receipt because different vendors format dates differently, some receipts might go missing based on banking records, some receipts fade, etc. Recording every expense within a few days of making them would solve alot of these problems and might even make ongoing and year-end accounting process relatively painless.

What I decided to do was start an expense journal for myself for the farm starting in May 2022. To get started I simply started entering my May 2022 expenses into a text file. I called the file "Farm-Expense-Journal.txt" because I'm just recording expenses by date.

The text file editor I use, UltraEdit, has a great column editing mode that allows me to easily select a column area containing a column of numbers and use a "Sum column/selections" feature get their sum. I take care to line up each column of numbers or letters in straight vertical lines so I can get sums easily and so it looks neat and organized. If you confine each column of numbers or text to a certain width, you can easily create a program that will parse through this file and get totals broken down by category, date range, or seller. Here is what some recent journal entries look like:

Date       Cost      Tax   Item                        Ctgy     Seller   
--------------------------------------------------------------------------------
05-19     16.99     2.54   Trailer 2 Inch Ball         ST       COOP-PH
05-19    155.82    23.37   Machinery Gas               GDO      ESSO-MABOU
05-21    213.91    32.06   BBJ Graphics Design         EE       FIVERR
05-21    235.60    35.34   Trailer Ceiling Pine        AE       KENT-INV
05-24    661.42    33.08   Farmhouse Power (6 months)  E        EMERA
05-24   1040.11    52.01   Barn Power (6 months)       E        EMERA
05-25   1413.04   211.69   Deposit for Villages        EE       FELDMAN
05-25     44.83     0.00   Wire Transfer Fee           IBC      WISE
-------------------------------------------------------------------------------

In the above, Date is MM-DD formatted. To repetitively include the year seems like extra work. I only record cost and sales tax amounts, not the total amount because generally in accounting the (before tax) cost and the sales tax are the quantities you end up dealing with separately for year end income tax and sales tax reporting. I provide a brief description of the expense, the category I assigned it to, and where I purchased it from.

Coming up with a category structure for coding your expenses is a critical part of expense journaling. I have a longer list of farm expense categories, but these are the ones used in the expense journaling above.

[ST] Small Tools
[GDO] Gasoline, diesel fuel, and oil
[EE] Event Expenses
[AE] Accomodation Expenses
[E] Electricity
[IBC] Interest and Bank Charges

How long a record should you create for each expense? You may want to limit yourself to around 80 characters. Why? Because you can easily print it off if you want to and review/share it with your business partners. If your business partners are using the same coding system and formatting for their own expense journals, you could also consider merging your expense journals to get the full picture on your business expenses.

One way I am starting to think about expense journaling is like a dietary journal where you try to record every calorie you are eating (expenses). You can then compare that to how many calories you burning off (income) and balance them out in some way.

The expense journaling system is still a work in progress.

Permalink 

Applying 8 Forms of Capital [Economics
Posted on May 5, 2022 @ 10:08:00 AM by Paul Meagher

In my last blog, Capital Conversion, I introduced the idea of 8 Forms of Capital.

I knew I had only touched the surface of this topic so in today's blog I want to search the net using the term "8 forms of capital" and comb through text results, image results and video results and share some of my top finds.

Googling on "8 forms of capital" brings up as a top text result this page titled Wealth: The 8 Capitals. What is interesting about the author's approach is that they take a community-level approach to thinking about capital and all the forms that it can take. I introduced the idea of 8 forms of capital at the individual level, but it can also be applied to groupings of people in a community, bioregion, urban area, etc... For those seeking to apply the 8 forms of capital beyond the individual level, this might be a good article to read.

Googling on "8 forms of capital" brings up as a top image result various images associated with the the Gitcoin Governance website. According to the Cryptopedia Gitcoin page, "Gitcoin combines open-source programming projects with a crypto payment system". I was wondering if the cryptocommunity was exploring the intersection of "8 forms of capital" and "cryptocurrency" and it appears the Gitcoin community is playing around with these ideas.

Googling on "8 forms of capital" brings up as a top video result a video by popular Youtuber Patrick Bet-David (3.4 million subscribers) who added one more form of capital (9 forms) and discussed its relationship to entrepreneurship.

In conclusion, in today's blog we took a tour around the net to see some applications of the concept of 8 capitals. We found these resources by googling "8 forms of capital" and compiling some top picks from the text results, image results and video results.

Permalink 

 Archive 
 

Archive


 May 2022 [2]
 April 2022 [4]
 March 2022 [1]
 February 2022 [1]
 January 2022 [2]
 December 2021 [1]
 November 2021 [2]
 October 2021 [1]
 July 2021 [1]
 June 2021 [1]
 May 2021 [3]
 April 2021 [3]
 March 2021 [4]
 February 2021 [1]
 January 2021 [1]
 December 2020 [2]
 November 2020 [1]
 August 2020 [1]
 June 2020 [4]
 May 2020 [1]
 April 2020 [2]
 March 2020 [2]
 February 2020 [1]
 January 2020 [2]
 December 2019 [1]
 November 2019 [2]
 October 2019 [2]
 September 2019 [1]
 July 2019 [1]
 June 2019 [2]
 May 2019 [3]
 April 2019 [5]
 March 2019 [4]
 February 2019 [3]
 January 2019 [3]
 December 2018 [4]
 November 2018 [2]
 September 2018 [2]
 August 2018 [1]
 July 2018 [1]
 June 2018 [1]
 May 2018 [5]
 April 2018 [4]
 March 2018 [2]
 February 2018 [4]
 January 2018 [4]
 December 2017 [2]
 November 2017 [6]
 October 2017 [6]
 September 2017 [6]
 August 2017 [2]
 July 2017 [2]
 June 2017 [5]
 May 2017 [7]
 April 2017 [6]
 March 2017 [8]
 February 2017 [7]
 January 2017 [9]
 December 2016 [7]
 November 2016 [7]
 October 2016 [5]
 September 2016 [5]
 August 2016 [4]
 July 2016 [6]
 June 2016 [5]
 May 2016 [10]
 April 2016 [12]
 March 2016 [10]
 February 2016 [11]
 January 2016 [12]
 December 2015 [6]
 November 2015 [8]
 October 2015 [12]
 September 2015 [10]
 August 2015 [14]
 July 2015 [9]
 June 2015 [9]
 May 2015 [10]
 April 2015 [9]
 March 2015 [8]
 February 2015 [8]
 January 2015 [5]
 December 2014 [11]
 November 2014 [10]
 October 2014 [10]
 September 2014 [8]
 August 2014 [7]
 July 2014 [5]
 June 2014 [7]
 May 2014 [6]
 April 2014 [3]
 March 2014 [8]
 February 2014 [6]
 January 2014 [5]
 December 2013 [5]
 November 2013 [3]
 October 2013 [4]
 September 2013 [11]
 August 2013 [4]
 July 2013 [8]
 June 2013 [10]
 May 2013 [14]
 April 2013 [12]
 March 2013 [11]
 February 2013 [19]
 January 2013 [20]
 December 2012 [5]
 November 2012 [1]
 October 2012 [3]
 September 2012 [1]
 August 2012 [1]
 July 2012 [1]
 June 2012 [2]


Categories


 Agriculture [76]
 Bayesian Inference [14]
 Books [15]
 Business Models [24]
 Causal Inference [2]
 Creativity [7]
 Decision Making [17]
 Decision Trees [8]
 Definitions [1]
 Design [37]
 Eco-Green [4]
 Economics [13]
 Education [10]
 Energy [0]
 Entrepreneurship [70]
 Events [3]
 Farming [20]
 Finance [29]
 Future [15]
 Growth [19]
 Investing [25]
 Lean Startup [10]
 Leisure [5]
 Lens Model [9]
 Making [1]
 Management [12]
 Motivation [3]
 Nature [22]
 Patents & Trademarks [1]
 Permaculture [36]
 Psychology [2]
 Real Estate [4]
 Robots [1]
 Selling [12]
 Site News [17]
 Startups [12]
 Statistics [3]
 Systems Thinking [3]
 Trends [10]
 Useful Links [3]
 Valuation [1]
 Venture Capital [5]
 Video [2]
 Writing [2]