Accounting for your interior design firm really doesn’t have to be so complicated. With the right procedures in place, and the right tools to automate some of the administrative work, it’s possible to keep good track of the numbers with minimal time and effort. The goal is to put the work in to set yourself up for success, and then move ahead building your business on the solid foundation you have set up. There are a number of things you can do to simplify this daunting area of the business, and here are a few suggestions.
Simplify Fee Invoicing
Chances are that if you bill for your time in some way, there is room to simplify this area of administration. A notoriously tricky and time-consuming part of accounting for interior designers, this area can be automated in large part to simplify the operations and save you and any staff a number of hours each month. Ensure you have access to tools that are custom to your industry. Doing so will bring you capabilities such as automatically-fed billing queues, multiple invoice detail options, simple time tracking, means to accurately estimate flat fees, and powerful reporting on tracked time. Get this important area of the business streamlined and you’ll see the positive effect on yourbottom line.
Collect Payments Online
One of the easiest ways to save yourself time and extra work is to begin collecting payments from your clients online. No more waiting for cheques in the mail, trips to the bank, or tracking what has been paid and what has not. A smooth process of sending your client an invoice with a payment link means they simply click and enter credit card information. It takes them seconds, and when the payment is completed, the transaction is automatically recorded in your accounting software. Your clients will love you and you will get paid faster. Your business management software should have this process integrated, and the associatedbookkeeping should be automated to help you simplify this area of accounting for interior designers.
Find a Bookkeeper Who Understands the Interior Design Business
Accounting for interior designers can get complicated, sopartner up with a bookkeeper who understands the challenges involved with your accounting and how to overcome them. If you’re having trouble finding the right person, ask for referrals from colleagues and friends, and check to see if your software company offers this service or can recommend a person to you. This is a critical area where it’s worth investing in expertise.
Set Standard Pricing Procedures
Create a pricing policy and stick to it. You likely have different agreements with your various suppliers, but set a standard amount for markups and discounts provided to your client. This lets you and your staff move more quickly through pricing and presentation preparation, without confusion and with less error. Everyone should have access to the company standards so that they can move forward with their work even when you’re out of the office.Momentum is so important, and procedures make keeping it up possible.
Use Accounting Software Customized for Your Workflow
It’s so important to use a software that is designed to manage your business specifically and that has accounting integrated. Why? Because if the accounting for your business is being managed in a separate system, you lose visibility of the information you need in order to profitably run your projects and your business as a whole. Many of the most successful designers out there say that they completely understand their business from top to bottom, and that means the accounting too. Find a friendly system that lets you run your projects day to day and also easily produces the associated financial reports you want to see at any time.
