Python for Entrepreneurs Transcripts
Chapter: Making money (credit cards and businesses)
Lecture: Purchase orders
0:01 Not all of your purchases are going to come through your credit card system.
0:07 In fact, some of your best customers will not ever
0:12 put their credit card into your credit card system.
0:15 And that's OK, so not all your purchases are going to be single purchases,
0:20 they are not going to come through the credit card system,
0:23 your best customers aren't going to use this.
0:26 Why? Not because they don't trust you,
0:29 but because your best customers are going to want to come
0:31 and buy ten, twenty, a hundred, a thousand of your thing,
0:35 and probably they don't want to do that by putting a thousand things
0:39 into their shopping cart or in my case they would have to actually make
0:43 a thousand separate purchases, the way the checkout flow works.
0:46 Instead, what they are going to do, is they are going to give you a purchase order,
0:50 and you are going to send them an invoice and then, some time later,
0:53 it always seems to be longer than you would expect,
0:56 longer than you kind of agreed upon, and way more variable, but eventually,
1:00 they will pay that invoice and you'll get money in a big chunk.
1:04 So, that's really great. Now, maybe this is old hat to you,
1:09 when I very first got started it was not to me,
1:13 and so it's great to have software to help you keep track of this.
1:16 So I have two recommendations, both of these are online systems that I can recommend.
1:21 So for my accounting, I actually use FreshBooks, and FreshBooks is decent,
1:26 it has like a starter tier that's like 15 dollars a month,
1:30 in the beginning it feels like a big deal,
1:32 but once it serves to help you with enough payments and taxes and so on,
1:35 then it doesn't seem like such a big deal after that.
1:39 So you can use FreshBooks, this is cool, it will let you fill out the details,
1:43 and an invoice, in response to a purchase order,
1:46 it will actually email these directly to the people,
1:49 you can set up Stripe and PayPal as places you can receive money
1:52 and then when they fulfill those, when they pay those invoices
1:55 which they can do online, the money will automatically go into your account.
2:00 Or, you can say "send me a cheque here" or
2:03 there is a variety of other ways in which you can pay.
2:06 So FreshBooks is really nice, I recommend it,
2:09 I've been using it for a few years and it's worked out great for me.
2:12 Another one that is a little newer is this thing called Invoiced.
2:16 And Invoiced is really nice it seems like a little more polished than FreshBooks,
2:20 it seems a little bit newer, I know FreshBooks has been talking about
2:23 they just spent ten million dollars on redesign of their web app.
2:27 So I suspect FreshBooks is going to get a big bump any day now,
2:30 whenever that thing goes live, but it's not live yet, so for the time being,
2:34 at the time of this recording, Invoiced seems more polished,
2:38 it's also cool that Invoiced has a truly free tier you get like ten clients in one user,
2:44 the user being you and ten clients from which you can accept invoices and so on.
2:49 Either one of these, I recommend you just check out both
2:52 and pick whichever one works best for you,
2:55 but there will come a time sooner rather than later, hopefully,
2:58 that you are going to need to handle invoices and invoicing and all that kind of stuff.
3:02 In fact, even the stuff that comes through Stripe for the credit card purchases,
3:06 the one off purchases on my training site,
3:10 I actually just take those and bulk them into an invoice that I sort of pay for myself,
3:15 right, here is my training course fee and boom, there it goes,
3:18 and so then it mixes them with all my other invoices,
3:21 things like from the podcast ad revenue which are almost exclusively
3:25 done through invoices, as well as a few consulting things independently here,
3:30 so it just lets everything go under this one accounting software,
3:33 which works well because I run my stuff as a sole proprietorship
3:37 so all the income I have to deal with personally anyway,
3:40 if you are in S Corp, you would probably do it differently.
3:43 Nonetheless, make sure you get some software to help out with accounting,
3:46 because accounting is not fun but the software makes it well,
3:49 almost fun, certainly when you get paid is fun.