Bookkeeping for Interior Designers

Every profession has two sides, the creative one you love and which is the reason why you started doing it, and the not so expected one, filled with tax services, financial reports, transactions, etc. That’s why every interior design firm owner should invest in proper bookkeeping for interior designers to get custom-tailored services and a dedicated bookkeeper who knows what to do.

What’s Bookkeeping for Interior Designers?

Nowadays, there are many apps that help us digitalize different parts of our day-to-day lives. However, sometimes a program can’t replace a human approach. And that is still the case with bookkeeping services. A good bookkeeper is every interior design business owner’s best friend.

First of all, if you plan to join the interior design industry, register a company and start making a profit, bookkeeping is non-negotiable. If you want to do it right from the very beginning, investing in bookkeeping services is something you should add to your list of small business expenses.

What’s Bookkeeping?

Sure, an interior designer knows a thing or two about construction or project management, but does it know anything about bookkeeping or accounting services? Don’t throw any of your design team members on fire by putting them in charge of this task.

Bookkeeping is a comprehensive job of recording all daily financial transactions, the money that goes in and out. Now, this might sound like it is something that’s easy to do on your own, especially if you just started your small business and have one client or two. That’s manageable.

But sooner or later, you’ll start growing, cash flow will increase, and you’ll be sending more than one client invoice per week, and that’s where things can easily get out of control. In the beginning, this might sound like just another unnecessary additional expense, but trust us, small business accounting and bookkeeping are more complex than you expect.

Bookkeeping Services for Interior Designers 101

Bookkeeping for Interior Designers

Every small business is different. An architect and interior designer have different job type and offer a completely different range of services. That’s why you need a bookkeeper who understands the difference and knows how to approach the niche. But could you be that bookkeeper?

Well, why not. As an interior design manager, you certainly know best how your job runs and what kind of expenses you have, so tracking them shouldn’t be such a challenge, right? Here are some tips that could help you keep your books up to date and neat.

  • Day-to-day bookkeeping – ordering new drapes for one client, new furniture for another one – you probably have so many transactions on a daily level that it can be challenging to keep up.  Don’t try to keep it all in your head. As a small interior design business, you have to have a clear record of all of your spending.
  • Make detailed records – keep all the receipts, invoices, and statements, and organize them well. Otherwise, you will get lost in them sooner or later. You need to make a good system and store everything properly. It might take a bit more time than you expected, but it will pay off.
  • Keep your purchase orders – while you are working on a project, you will probably have to make several purchases, and it can be a bit chaotic if you lose track, which is why it is essential to keep every single purchase order. These documents serve not only as financial proofs but can also help you follow everything and contribute to more detailed book records.
  • Working with deposits – try to avoid using the company’s money for project purchases before you collect the payment from a client. Orders can get canceled, a client could change their mind, so run your business wisely.
  • Filing sales tax – tracking your income and sales tax is crucial, as well as filing them on time. Making quarterly or, even better, monthly reports should help you do this more efficiently and easily.
  • Tax deductions – saving money whenever possible is crucial for a small studio designer, which is why familiarizing yourself with how tax deductions work should be your priority. As an interior designer, you could benefit from it a lot.
  • Have a separate client account – separating your personal and company account is a must, but what if you add the third one? Having an account specifically for clients’ payments might sound like a lot of additional work, but it should make things more straightforward in the long run and simplify your bookkeeping.
  • Getting a bank loan – it is well known that banks avoid giving loans to small businesses. However, there is still a chance to get a business loan, especially if you have detailed books with all the records to prove that your business is healthy and stable enough to get the loan.

The Right Way to Do Bookkeeping for Interior Designers Is?

A small business owner who is searching for a reliable bookkeeper shouldn’t look any further than LessAccounting. Whether you’re an interior designer or a project manager, LessAccounting will approach your business and book with such dedication and professionalism that you’ll be impressed. LessAccounting has been in the industry since 2011 and has numerous positive reviews and a long list of satisfied clients, which you can join as well. The best part? You will get your Certified Public Accountant, who will be in charge of your books and can work closely with you to keep your books optimized.

With transparent pricing, features, and services explained, LessAccounting is simply unparalleled. Although the other two competitors are also good options, those interior designers who want their only dilemma to be whether to opt for black or white curtains shouldn’t think twice before choosing LessAccounting. It is an investment worth making at the very beginning if you want your books to be on point and your business to thrive.