Practicing Profit First bookkeeping for interior designers means being regularly attentive to where your money is going. If you’ve already taken the time to create separate bank accounts and determine which expenses need to go where, then you know that this method takes more upkeep than a “traditional” approach would. Gone are the days of simply depositing money into your bank account and not thinking about it again – but that’s not a bad thing! Rather than having the mental and financial burden of uncertainty about your finances, you will now know exactly where your money is, at all times.
If you’ve read the Profit First book, you’ll know that Mike Michalowicz recommends doing allocations on the 10th and 25th of each month. This method does work for a lot of people, but it’s not our exact preference at AccountSolve. Instead, we do our allocations every Monday. This method keeps our rhythm of allocations steady and consistent, rather than allocating on a different day of the week every time.
This is what we love about Profit First – the framework is a great starting place, but it doesn’t have to be prescriptive. Your interior design business doesn’t look how Mike’s business does, or ours, and it can vary widely even from other interior designers!
One of the most paralyzing parts of running a business can be doubting whether you’re “doing it right” – and those doubts can overcomplicate your good business strategy.
Our favorite way to think about incorporating an allocation rhythm into your current schedule is to pair it with a similar task that you’re already in the habit of doing. If you pay bills on the same day every week or twice a month, try pairing your allocation practice with that habit, and see how easily you can combine the two!
Setting a good allocation schedule will bring peace of mind and clarity to the financial management of your interior design business, and we can’t wait to see where your success takes you!
If you need help learning more about implementing Profit First bookkeeping for interior designers or advice about your current system, schedule a call with us today!
