We know that interior designers thrive on creativity, innovation, and turning spaces into stunning works of art. However, one area that often feels intimidating and challenging for many creatives is accounting.
If you’ve ever felt overwhelmed by numbers, reports, or tax season, you’re not alone. The good news is: with the right accounting strategies, you can transform this overwhelm into a tool for growth.
Today, we’re sharing 3 critical accounting tips that can make a world of difference in managing your interior design business.
1. Separate Business and Personal Expenses
One of the most fundamental accounting tips for interior designers—and business owners in general—is to keep your business and personal expenses separate. While this might sound obvious, it’s easy for lines to blur, especially for creative-minded people who feel like they’ll be able to remember what was what.
According to Jen Samson, this separation was a game-changer for her business.
“When I started to become crystal clear on the purpose of each of my accounts, it really helped me stay consistent,” Jen shared. “I made sure that my business expenses were entirely separate from my personal ones, and that made all the difference.”
Separating these expenses not only makes bookkeeping easier but also ensures that you have a clear picture of your business’s financial health. It allows you to accurately track profitability, manage cash flow, and prepare for tax season with confidence.
⭐️ Tip: Open a dedicated business bank account and credit card to manage all transactions related to your interior design projects. This approach helps you stay organized and provides an easy reference point for reviewing your financial activity. It also makes tax preparation simpler and keeps you in good standing with the IRS.
2. Track All Revenue and Expenses Carefully
The second critical accounting tip is to track all revenue and expenses with great attention to detail. Interior designers often deal with multiple projects, each with its own set of expenses – from materials and subcontractors to travel and client meetings.
Keeping an accurate record of every dollar that comes in and goes out is essential for understanding your profitability and ensuring you’re charging enough to cover all your costs.
For Jen, working with AccountSolve has been a turning point in understanding how to track her finances effectively. “I never fully understood what my former bookkeeper was talking about,” she admitted. “But Lori explains things in a simple manner. I can ask, ‘Can you explain this again? What am I looking for? Do you see any red flags?’ She makes it all accessible and not in a way that’s stressful.”
Jen emphasizes how tracking revenue and expenses has become a fun and engaging process, something that she looks forward to instead of dreading. By staying on top of her financial records, she’s been able to spot trends, identify potential problems, and make informed decisions about her business.
⭐️ Tip: Use accounting software like QuickBooks or Xero to simplify tracking your expenses and income. These tools help you generate reports, categorize transactions, and stay on top of your finances.
Alternatively, consider hiring a bookkeeper who understands the unique needs of interior designers to help you stay organized.
3. Use Reports to Improve Decision-Making
The third and perhaps most impactful tip is to use your financial reports to make informed business decisions. Many interior designers avoid looking at their financial statements because they find them intimidating or confusing. However, these reports are treasure troves of valuable information that can guide you in making strategic decisions for your business.
Jen found this to be a game-changer when she started working closely with AccountSolve.
“She makes the financial side of the business something I’m excited to look at most of the time,” Jen said. “I understand it, and she’s so easy to talk to. It made what used to be a very intimidating side of the business for me a lot more accessible. It’s not intimidating. It’s something I know is key to my business growth and development.”
Financial reports like the Profit and Loss Statement, Balance Sheet, and Cash Flow Statement offer insights into how well your business is performing. They help you identify which projects are most profitable, where you might be overspending, and how you can optimize your operations for greater efficiency and profitability.
⭐️ Tip: Schedule time in your calendar to review your financial reports monthly or quarterly. If you’re not sure what to look for, work with an accountant or bookkeeper who can help you understand the key metrics and provide guidance on how to use this information to make better decisions.
The Power of a Great Bookkeeper
Jen’s experience highlights the transformative power of having a knowledgeable and supportive bookkeeper. “Having Lori has been a key part of my growth in this company,” Jen said. “I can’t imagine I would have been able to take any big steps in my business—open a studio, double the studio, take on contractors, move them to full-time employees— with Lori. She has been very much at the forefront of the financial side that’s given me the confidence to help me be able to grow.”
Working with AccountSolve allowed Jen to not only understand her finances, but also gain the confidence to make bold moves in her business. As Jen put it,
“I don’t know that I would have had the courage or know-how to do it without her.”
AccountSolve helped turn a previously stressful and messy aspect of Jen’s business into a well-organized and consistently managed system, giving her the clarity and assurance she needed to pursue her growth goals.
If you’re an interior designer struggling with your finances, finding the right bookkeeper or accountant could be the key to unlocking your business’s potential. A skilled professional can not only help you manage your books but also provide the guidance and support you need to make informed decisions and grow your business with confidence.
Accounting doesn’t have to be an intimidating part of running your interior design business. By separating your business and personal expenses, carefully tracking all revenue and expenses, and using financial reports to guide your decisions, you can gain control over your finances and set yourself up for long-term success.
And as Jen Samson’s experience shows, having a trusted team by your side can make all the difference, turning accounting from a dreaded chore into a powerful tool for growth.
So, take these critical accounting tips to heart and start implementing them in your interior design business today. You’ll be amazed at how much clarity, confidence, and peace of mind you’ll gain when you’re in control of your finances.
