Wednesday, July 30, 2008

Accounting 101

Accounting for Dummies:

  • Assume the Tanzania shilling is equivalent to the US dollar
  • Only conduct business in amounts less than $10 or 10,000 shillings.
  • Make sure you never have small bills on you so that you can't give the customer change. They'll usually just let you keep the extra dollar or two. (Unless it's Sam and he decides to buy 5 beers at once since he doesn't trust the bartender to remember the credit)

Advanced Accounting:

  • Demand everything in US dollars (only the new US dollars)
  • Paste a picture of the new US dollar on your wall followed by a sign noting that it is a federal offense to pay in anything other than US dollars. (Remain fully aware of the fact that the closest atm is 2 hours away and only dispenses Tanzania shillings.)
  • Insist on all payments up front (this is especially important with hotels before the customer can check to see if the water and/or electricity are actually working)
  • When customer has no us dollars, say that just this one time you can make an exception to the law.
  • Take 10 minutes to look up the exchange rate. When you see that it is currently 1.1, proceed to charge no less than 1.3. If the customer protests, say your next best offer is to charge a 10% commission on a cash advance from Visa only

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