Interior Design Bookkeeping: How It’s Different
CJ Accounting2 comments Accounting Tips, Interior Design
We cover a variety of industries, but by far the most unique is bookkeeping for interior design.
Here are a few reasons why:
Big Money, Small Biz
Bookkeeping for interior design is unique because often there is a lot of money coming in, but most interior design firms are still small businesses. This is because you see a large percentage of money upfront, and that money needs to go to different places (sales tax, markup, materials – the list goes on), the majority is literally spent before you even receive it – very dangerous for a small business! Too many interior designers try to tackle this themselves, and sometimes schedule’s get busy and bookkeeping get’s skewed. Do you know how much you are ACTUALLY making after overhead? Without knowing your real profitability, it’s impossible to know where changes should be made!
Interior design bookkeeping doesn’t just require basic QuickBooks knowledge that most accountants possess. It requires an intimate knowledge of software like Studio WebWare or Design Manager. The difficult part is some designer’s aren’t 100% sure of how to use the software effectively themselves, making it nearly impossible to train an accountant.
We see this far too often – an interior designer hires a fabulous new bookkeeper, but that bookkeeper doesn’t understand interior design software, and instead convinces them to move to QuickBooks only. This isn’t always a negative – we love QuickBooks – but, not knowing anything else cuts you off from the wonderful tools available to your firm, tools that could increase profitability and make your life substantially easier. And, this may leave you at a bookkeepers mercy, putting your firm back in the dark ages.
For us accountants, numbers are everything. We’re all about the bottom line, but without sufficient industry knowledge, an accountant won’t know how to implement systems that make sense. A bookkeeper may see that you aren’t making enough profit on jobs, but without an understanding of how you could be cutting time, increasing jobs, marking up effectively, and why you charge clients the way you do, they won’t know how to help you make smart business decisions.
For interior design bookkeeping and higher level accounting help, contact us today at email@example.com. We’d love to help!
The C&J Accounting TeamTags: Accounting, Bookkeeping, Interior Design