Karen Gastle

 Tags: Accounting

Accounting for interior designers can be a stress-filled and complicated process. There’s a lot to keep track of between deposit and balance invoicing, payments to suppliers, expense tracking, bank reconciliations, and more. Having a good plan in place and executing everything that needs to be done on a regular basis will help to relieve some of the stress that comes along with running a design firm. Here are some of our tips on how to get ahead. 

Plan Ahead

Marking appointments in your calendar—even if they are only appointments with yourself—is a powerful way to hold yourself accountable. Don’t let other tasks, clients, or meetings take over your schedule and leave you without time for those things that you need to get done each week. Setting a time to do your bookkeeping and accounting, even if it may seem like the last thing you have time for, will pay off in the end. Make it a priority and the stress over falling behind and feeling overwhelmed will fall away. 

Set Yourself up for Success

Knowledge is power. You’re not a bookkeeper or accountant, but that doesn’t mean you can’t get involved. The more you know about bookkeeping and accounting for interior designers, the less stressful it will be and the more effective the time you spend on it will be. Dive in and take advantage of all the great resources available online. If you have a bookkeeper, ask them to explain what they doand how you can improve current processes. This person is an incredible source of knowledge, so think up some questions you have about the financial health of your business and see how they can help you. 

Outsource Expertise

Further to the point above, having good help in place is the best way to ensure all the groundwork you’ve laid in setting yourself up for success is carried out each day. You can reduce the stress of feeling like you have to do it all yourself. If you can, hire a great person to help you carry out your vision. 

Change Your Mind

Think of the time you spend on your bookkeeping as critical time that’s going to help you keep your profits up, grow your business, and ultimately earn you more money each year. If this is a weak spot for you, think about the opportunity you have to improve this key area.Consider the impact you could have on your business if you develop these skills and gain a solid understanding of accounting for interior designers.

Set Goals

Make a list of what tasks should be carried out daily, weekly, monthly, and annually. Include anything from tracking time and recording expenses to reviewing cash flow and other company level reports. And what are goals without rewards?The biggest reward here may be reduced stress and less time required to accomplish all these tasks as they become more and more routine. 

Automate

Many software options are available, but choosing an industry-specific software always pays off.Find a solution that was developed with your business’s unique workflow in mind in order to simplify your accounting. An interior design firm’s business is project-centric and has unique challenges. The combination of producing custom goods, managing various pricing methods, deposit collection, and payment organization, and order tracking are just a few of the needs that a software program needs to meet. Find the right software for your business and move toward a more streamlined and stress-free office environment.

 

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Karen Gastle

As an account manager, Karen has experience working with design firms of all sizes to integrate DesignDocs to streamline business processes, increase administrative efficiencies, and deliver higher profits.
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