Too many interior designers get stuck working IN their business. And we understand – you start out doing everything because you have to! But as your business grows, you have to start delegating.
One of the most impactful places you can get help is your business’s finances.
In this blog post, we will discuss the importance of hiring an interior design bookkeeper and/or an accountant for your business. We’ll talk through the nuances between the two roles and how to know what you need and when you need it.
Bookkeeping
Bookkeepers keep your books in order.
What bookkeeping is:
Bookkeeping is the administrative, transactional, day-to-day practice of managing your finances. A bookkeeper will record financial transactions (purchases, receipts, sales, and payments) in your accounting software like QuickBooks or Xero. In organizations that have employees, the bookkeeper can manage payroll.
What bookkeeping is not:
- Tax preparation
- Financial advising
- Subjective
Accounting
Helps you navigate financial strategy questions.
What accounting is:
An accountant receives more education and training than a bookkeeper. An accountant will provide a comprehensive view of your financial picture based on information gleaned from the bookkeeping data. The accountant can help you use this data to navigate financial decisions regarding taxes and investments. In addition, an accountant can help your business deal with any legal issues and avoid trouble with the IRS by compiling the necessary financial information.
What accounting is not:
- Transactions
- Daily record-keeping
- Payroll
Most businesses will add a dedicated accountant when:
- Their taxes are too complex to handle on their own.
- The business owner feels like her time could be better spent elsewhere – anywhere but accounting.
- The business is experiencing growth and the business owner cannot keep up with the accounting demands herself.
Should I hire a Profit First bookkeeper or accountant?
We recommend having a bookkeeper and/or accountant who is a Certified Profit First Professional. If they are experts at implementing Profit First, you’ll see the benefits in your business immediately. We would also stress that your Certified Profit First Professional should also have the additional experience and knowledge of the interior design business. The concepts to employ in your bookkeeping and accounting are complex. But the right guide will make the way forward crystal clear.
AccountSolve bridges the gap between bookkeeping and accounting
As you can see, bookkeeping and accounting for interior designers are distinct roles but are closely connected. At AccountSolve, we bridge the gap between a bookkeeper and a tax preparer, who is often a CPA. By doing this, our clients get more high-level accounting knowledge as well as financial guidance.
Conclusion:
If you’re trying to decide what’s right for you, go through this short exercise:
- List the financial activities that you do each week and estimate how much time you’re spending on those tasks.
- Then ask yourself: What is my time worth? And what things can I delegate on this list?
- Another question: Do I need help with the big picture (accounting) or the day-to-day manual functions (bookkeeping)?
If you think that it might be time to get some help in these areas, we invite you to schedule a call. Our team of Profit First bookkeepers and accountants can’t wait to help take some of these burdens off your plate.
