Bookkeeping. It’s one of those things that we hear about and create a vague definition for in our minds before filing it away as something we’ll never really need to use.
Now that you own a business, you’ve probably had more than a few moments of regret over your previous lack of concern for bookkeeping for interior designers.
We get it. You didn’t enter your field so that you could stare at numbers all day – but it’s par for the course in owning a business.
Let’s see if we can rework some of your old ideas about bookkeeping into knowledge that’s functional for your life now!
What is Bookkeeping
Simply put, bookkeeping is the act of recording your finances and transactions.
It can all feel a bit tedious, but trust us when we say you’ll reap the benefits in the long run.
Now that you have a clear definition, let’s talk about why bookkeeping actually matters.
Bookkeeping will allow you to:
- Monitor spending
At its most basic, bookkeeping allows you to know what you’ve spent, and where. It may seem simple, but tracking your spending in a focused and streamlined way will bring a fresh sense of clarity to your finances.
- Track spending or revenue trends over time
Monitoring your spending every day means that you’ll quickly develop a record of your spending habits. In addition to knowing where your money is going from the day-to-day, you’ll also have a birds-eye view of your weekly, monthly, and yearly spending habits.
- Know the overall numbers of the business
Once you know what your spending and revenue trends are, you’ll find that you have a nearly instinctive grasp on your business’s overall financial situation. You won’t have to spend hours writing down numbers and making calculations every time you need to know the big numbers anymore. The numbers will be there waiting for you, clear as day.
- See where you’ve been and make educated decisions on where to go next
If you’re more of a “words than numbers” person, think about bookkeeping for interior designers in terms of keeping a daily journal. It may be hard to track your personal growth or experiences if you only write them down and reflect on them twice a year.
But if you journal one small page every day, you’ll have a detailed and ready-made starting place for when you need to reflect on your own life and make decisions for the future. Bookkeeping is the “daily journaling” of financial management.
- Keep your business in compliance
In other words, taxes.
Calculating what your business owes at the end of each year can feel like an insurmountable task. But if your books have been kept in order the whole time, you’ll be able to bypass so much of the stress that tax season usually brings.
After reading the ways that an interior design bookkeeper can bring peace of mind to your business, it’s hard to imagine managing your finances any other way! If you’re inspired to kick your bookkeeping into high gear but need some extra help, schedule a call with us today.
There’s nothing we’d love more than to help you find order in your finances!