There are a few different levels of expertise when it comes to the interior design accounting and bookkeeping world.
We know the ways that bookkeepers and accountants differ from each other, but the deeper you dig, there’s a great deal of variation within those two categories. It’s dangerously easy to use “bookkeeping” as a blanket term for anyone who simply does data entry in your business.
In reality, there is a big difference between professional bookkeepers and a data entry clerk with bookkeeping experience.
Often, these clerks “sort of” know the QuickBooks platform and how to classify transactions, but they don’t have true expertise in the mechanics of accounting platforms and detailed accounting knowledge. Expertise in both of these areas is vitally important if a client is going to have solid, clean books.
Maybe your “bookkeeper” is a friend who you don’t want to let go of, or it seems like too much work to go through the process of finding another bookkeeper. But the cost of disrupting your current bookkeeping system is far outweighed by the benefit of hiring an interior design bookkeeper who will set your business up for success in the long run.
Here are three things to look for when hiring a fully qualified employee to do your interior design bookkeeping:
- Interpreting financial statements
First and foremost, your bookkeeper needs to be able to read financial statements so that they can spot inconsistencies and discern patterns in your finances. Whether these patterns are good or bad, it’s crucial to have a bookkeeper who can recognize them well so that you always know exactly what’s going on with your books. - Reading financial statements
Interpreting financial statements is the first step, but your bookkeeper also needs to be able to read financial statements so that they can make changes, if necessary. Your interior design business’ bookkeeper needs to be able to spot what’s wrong and fix the issues. Documenting transactions isn’t the same as being able to discern patterns and make informed decisions based on findings. You need a bookkeeper who can take recordkeeping to the next level. - Accounting platform knowledge
Robust knowledge of your accounting platform will enable your bookkeeper to actually dig in and find the root of the problem. Find a bookkeeper who can use your platform to understand how individual transactions are all connected, and how they affect financial statements as a whole. Discernment skills will only take them so far if they don’t know the system’s individual components, or how to effectively make changes!
The last thing your bookkeeper should do is merely create journal entries to track your finances because that will ultimately function as nothing more than a bandaid. This type of bookkeeping is all surface level and nothing more.
Without professional handling of the bookkeeping, a business owner is at the mercy of the data entry clerk. This sets the business up for confusion since no one will be able to make truly educated decisions about the business.
The good news is that you don’t have to hold on to less than optimum interior design bookkeeping habits! We invite you to schedule a call with AccountSolve to get the resources you need for financial freedom.
