As a business owner, you’re probably familiar with the term ROI (return on investment). Even non-business owners utilize the basic premise of ROI on a daily basis – we subconsciously calculate our own version of ROI all the time. “Will this homemade pizza dough taste good enough to justify the time and effort it will take me to make it?” or “Will the fun of owning a puppy be worth the responsibility and commitment?”
Simply put, calculating ROI is weighing your options to decide what will yield a greater reward compared to your investment.
In the business world, ROI is often concerned with hard data and numbers. The most effective way to calculate ROI is to make precise calculations, not to draw vague generalizations.
For interior designers, calculating ROI is extremely important. You want to make sure you know that the work you’re putting into your projects is paying off and setting you up for success down the road.
Getting a good bookkeeper is one of the best things you can do as you seek to understand your company’s ROI, or the ROI for a specific project.
4 ways an interior design bookkeeper can impact your ROI
- You get your time back
As an interior designer, doing your own bookkeeping can feel like a full-time job on its own – not to mention trying to track and calculate ROI!
In order to understand your ROI, you need accurate financial records, a reliable system for logging information daily, and an understanding of how ROI works in the first place.
A bookkeeper will already be doing the consistent work of tracking your finances, so incorporating ROI into that work is a much more natural transition than if you tried to do it yourself. Let the financial experts handle the ROI so that you can do your very best work.
- Bookkeepers find ways to save you money
Bookkeepers watch your business spending ebb and flow, day in and day out. They have a unique perspective on how you could be saving money that would maybe never cross your mind. The longer they calculate your ROI for you, the better they’ll be able to track patterns and identify where you can cut back or shift.
- Your bookkeeper works with an accountant
While your bookkeeper is involved in your daily finances, an accountant focuses on the bigger picture. A great bookkeeper will be working closely with an accountant to round out their blind spots so that they can give you the best financial advice possible.
- ROI calculation is tricky
While there are simple formulas and common methods for calculating ROI, there are always inevitable hiccups along the way. ROI is rarely a cut-and-dry process, but rather a tedious, meticulous responsibility. It’s important to have a quality interior design bookkeeper to not only set you up to predict an accurate ROI, but to free you up to work with more clients.
Don’t let confusion over calculating ROI keep you from making progress in your interior design business. Schedule a call with AccountSolve today and start a conversation about how to get financial clarity for every part of your business.
