As I wrap up the renovation project in MoRA I’ll need to calculate my net profit in order to document it for myself as well as future partners or investors. This is the largest renovation I’ve ever done, it’s wicked fun, and I would like to get to a point where I’m doing even larger renovation projects in addition to cosmetic flips so precise reporting, down the penny, is imperative.
Reconciling the figures to produce this report should be the easy part.
Every dollar that has been spent is documented and ultimately runs through one bank account.
I have every receipt.
I have every invoice.
I have every delivery ticket.
I have every bank statement.
I have a spreadsheet with the numbers in it.
The problem is that I also have a big folder, about two inches thick, full of receipts and invoices and delivery tickets. But along the way, I stopped putting all those numbers into the spreadsheet.
So now, instead of just adding the last couple of invoices and pressing a button, I’ve got to sit down and dig through the folder, organize it, and punch all the numbers in. Instead of taking me 10 minutes it will take a couple hours to precisely calculate the return on this project.
Whenever I would toss a receipt into that folder, I’d tell myself I was saving time.
“I’ve got to do X right now, so I’ll come back to this later.”
But then I didn't come back to it. Instead, a couple of days later, I'd toss another stack of tickets in the folder because I was busy doing some other task.
Three months later and I’ve got a mess that will take me twice as long to do as it would had I just kept up with it all along.
Like everybody else, I stay pretty busy. I use the excuse of being busy for why I don’t stay on top of things and wind up with a mess like this.
It would be so much easier now had I just tended to this all along.
The funny thing is, if you ask anyone in my family, they’ll tell you that I preach this all the time.
“Pick up the mess from drawing before you get out the board game”
“Fold your laundry as soon as it’s done drying.”
“Wash the dishes right after you eat.”
I guess maybe I need to start preaching to myself.