What is Accrual? What Designers Need to Know

What is accrual accounting vs. cash accounting? If you have been in business for more than a year, you have probably heard these terms before but do not fully grasp what they mean or why they are important. Let’s start by setting your mind at ease and letting you know that you are not alone. Approximately 70% of small business owners do not fully comprehend the difference. However, the designers that understand the difference between cash vs. accrual usually have an advantage in being successful and implementing this knowledge into their firm’s growth strategy.

What’s the difference?

There are only two methods of reporting accounting when it comes to recognizing revenues and expenses, which include cash accounting and accrual accounting. The most basic difference between the two is the time which a business reports income earned and expenses incurred.

Cash vs. Accrual Accounting

Cash accounting by definition is a method of practice in which income is recognized when money is actually received, and expenses recognized when money is actually paid out. This is different than accrual accounting where revenues and expenses are recorded when they are incurred, regardless of when cash is exchanged.

Why it’s important to know the difference…

The reason it is important for designers to fully comprehend the difference between cash and accrual accounting is because most small to mid-level firms file income taxes on the cash basis but it is likely their accounting system reports most accurately on the accrual basis. Another reason designers should understand the difference between the methods is because although a company may file income taxes on the cash basis, the company’s sales tax is most likely required to be filed on the accrual basis. In order to not underpay on income taxes, or overpay on sales tax, a designer would need to understand these two concepts and implement operating procedures. Having a true comprehension of cash vs. accrual accounting will help a design firm more accurately manage cash flow, budget business operations, potentially save money during tax time and operate a better set of overall procedures.

Understanding how design software reports on accrual

Designer software usually reports better on the accrual basis because it provides a clearer picture of the businesses income and expenses matched in the correct year. For example, a designer received a client payment into their bank account on December 20th for an invoice that was previously sent to a client. However, the designer is not ordering anything for that client until after Jan 1st of the following year. On the cash basis, if we were to simply report money received as income, it would overstate net income for the current year and understate offsetting liabilities. On the accrual basis of accounting the designer can record their liabilities as expenses for items that need to be purchased by creating “bills” and in turn only recognizing the actual profit for the client payment and not the income for the full amount paid before related costs. In this example, the accrual net income would be less than cash basis and thus reduce income tax liability for the year.

IRS Requirements for Accrual vs. Cash Tax Filing

Most small to mid-size firms report on the cash basis unless they are above $5million in gross revenues. If a firm or individual brings in more than $5million in sales per year they should be filing taxes on the accrual. If a firm’s gross sales are less than $5million in a year that firm will most likely file income taxes on the cash basis. If you are a small to mid-level designer or firm, you will want to have a practice that allows your books to have very close numbers on the cash and accrual. Large variance in the numbers could indicate a problem in the accounting workflow.

–

Written by Marissa McKinney, Logistis

Logistis is a cloud-based accounting firm specializing in interior design. Logistis helps carry designers through the entire accounting process, from start to finish. They can set up the financial portion of your office, integrate your systems, run your payroll, prepare your taxes and offer assistance with financial planning along the way.

Ivy is the # 1 software for designers. To learn more about Ivy, schedule a demo with an Ivy Guru who can show you how designers use Ivy to streamline their workflow and make more time for what they love, design.

A Designer’s Accounting Glossary A-Z

Accounts Payable Accounts payable (AP) is an accounting entry that represents an entity’s obligation to pay off a vendor or consultant. The accounts payable entry is found on a balance sheet under the heading current liabilities.

Accounts Receivable Accounts receivable (AR) refers to money owed by customers/clients to another entity in exchange for goods or services that have been delivered or used, but not yet paid for.

Accrual Basis Method of ACCOUNTING that recognizes REVENUE when earned, rather than when collected. Expenses are recognized when incurred rather than when paid.

Asset is a resource with economic value that an company owns or controls with the expectation that it will provide future benefit. Assets are reported on a company’s balance sheet.

Audit A professional examination of a company’s financial statement by a professional accountant or group to determine that the statement has been presented fairly and prepared using GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP).

Bad Debt All or portion of an ACCOUNT, loan, or note receivable considered to be uncollectible.

Bank Reconciliation A process by which an accountant determines whether and why there is a difference between the balance shown on the bank statement and the balance of the cash account in the firm’s GENERAL LEDGER.

Balance Sheet a statement of the assets, liabilities, and capital of a business or other organization at a point in time, detailing the balance of income and expenditure over the preceding period.

Cash Basis Method of bookkeeping by which REVENUES and EXPENDITURES are recorded when they are received and paid.

Chart of Accounts A listing of the accounts available in the accounting system in which to record entries. The chart of accounts consists of balance sheet accounts (assets, liabilities, stockholders’ equity) and income statement accounts (revenues, expenses, gains, losses). The chart of accounts can be expanded and tailored to reflect the operations of the company.

Client Deposit could be an amount paid by a customer/client prior to the company providing it with goods or services. In other words, the company receives the money prior to earning it. The company receiving the money has an obligation to provide the goods or services to the customer or to return the money.

Cost of Goods Sold (COGS) are the direct costs attributable to the production of the goods sold by a company. This amount includes the cost of the materials used in creating the good along with the direct labor costs used to produce the good. These are normally referred to as “project costs” in an interior design firm. It excludes indirect expenses such as distribution costs and sales force costs. COGS appears on the income statement and can be deducted from revenue to calculate a company’s gross margin. Also referred to as “cost of sales.”

Equity is the amount of the funds contributed by the owners (the stockholders) plus the retained earnings (or losses). Also referred to as shareholders’ equity.

Financial Statements
Presentation of financial data including BALANCE SHEETS, INCOME STATEMENTS and STATEMENTS OF CASH FLOW, or any supporting statement that is intended to communicate an entity’s financial position at a point in time and its results of operations for a period then ended.

Gross Sales The total amount of sales for cash and on credit accumulated during a specific accounting period.

Income Inflow of REVENUE during a period of time.

Income Statement (Profit and Loss Statement) is a financial statement that measures a company’s financial performance over a specific accounting period. Financial performance is assessed by giving a summary of how the business incurs its revenues and expenses through both operating and non-operating activities. These normally cover 12-month periods of time.

Inventory Tangible property held for sale, or materials used in a production process to make a product.

Invoice Bill prepared by a seller of goods or services and submitted to the purchaser.

Journal Entry (Adjusting Entry) A journal entry is used to record a business transaction in the accounting records of a business. Adjusting journal entries are recorded at the end of an accounting period to alter the ending balances in various general ledger accounts. For example, you could accrue unpaid wages at month-end if the company is on the accrual basis of accounting.

Liability is a company’s legal debt or obligation that arises during the course of business operations. Liabilities are settled over time through the transfer of money, goods or services.

Markup The amount added to the price of a product by a retailer to arrive at a selling price.

Net Income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses. This number is found on a company’s income statement and is an important measure of how profitable the company is over a period of time.

Overhead is an accounting term that refers to all ongoing business expenses not including or related to direct labor, direct materials or third-party expenses that are billed directly to customers. Overhead must be paid for on an ongoing basis, regardless of whether a company is doing a high or low volume of business. It is important not just for budgeting purposes, but for determining how much a company must charge for its products or services to make a profit. These are NOT Project Costs!

Purchase Order Written authorization to a vendor to deliver specified goods or services at a stipulated price.

Retainer is a sum of money paid before a job is to begin. This is done to secure the first month of work in most cases. Sometimes it is paid back at the end or job. You can also net it with the last invoice on a job and return the difference. Make sure this is clearly defined in you contracts.

Revenue is the amount of money that a company receives during a specific period for time billings and purchasing. Revenue also includes discounts and deductions for returned merchandise.

Sales Tax A TAX that is levied by a state or city government on the retail sale of goods and services.

Vendor Deposit/Work in Progress are goods in production that have not yet been completed. It includes any deposits made to vendors before the final product has been completed.

–

Written by Kimberly Merlitti of KMM Consulting

Kimberly Merlitti owns KMM Consulting based out of San Francisco, CA. Kimberly has 20 years of experience working in accounting for companies such as Swinerton Builders, WRNS Studio and Martin Group. She has her Masters in Accounting from Golden Gate University located in San Francisco, CA. KMM Consulting’s clientele include a diverse group of service based companies, with a main focus on small interior design, construction and architectural firms. The goal of her firm is to make the businesses she works for as profitable as they can be by educating them on accounting, cash flow management, tax deductions, project reporting, and business management.

Designers are Using Norse Interiors to Upgrade IKEA Furniture and Impress Clients

We met with Lotta Lundaas, Founder of Norse Interiors, who’s on a mission to make custom furniture pieces more accessible. Her Swedish roots, coupled with her entrepreneurial spirit, inspired her to upgrade IKEA furniture with Scandinavian-design components – genius, right? Using the strong bones of IKEA furniture, Norse allows you to make 1,000+ different cabinets using various colors and patterns. Lotta walks us through the Norse process and how she collaborates with designers.

Lead image by Norse Interiors

Lotta – how did you get where you are today?

Lotta Lundaas: I’m originally from the North of Sweden, and I came to the US in 2013 and fell in love with New York. I have furniture-making and entrepreneurship running through my veins; my grandfather was a carpenter, and my father is a serial-entrepreneur and very handy. I inherited their DIY ethos, and I have a passion for beautiful design.

Before Norse, I led business development and online marketing efforts in various companies and industries for 10+ years. I worked at a telecom startup when I came up with the idea of upgrading IKEA furniture; I was decorating the office and could only find cookie-cutter style furniture at a reasonable price. That’s when I realized there was an opportunity to work with American manufacturers and bring Scandinavian design to the custom furniture market.

What’s Norse about in 140 characters or less?

LL: We’re changing the furniture industry, making custom pieces accessible by upgrading IKEA furniture with Scandinavian-designed components.

Nightstand Eleanor in White Lace 1 by Norse Interiors

Photo by Norse Interiors

How is Norse different from the other IKEA upgraders out there such as Semihandmade?

LL: IKEA is so modular, and it has good bones, which is what ‘IKEA upgraders’ have realized and hacking them has become increasingly sophisticated. What makes Norse unique is the versatility we offer in a simple online buying journey, combined with a high level of design and quality. With our components, in different colors and patterns, you can make 1000+ different cabinets and truly be the designer of a one-of-a-kind piece.

Walk us through the Norse process…

LL: You’ll start with an IKEA cabinet frame from their ‘Besta’ line, which comes in multiple sizes. Since you can buy their cabinets without fronts, it’s a zero-waste upgrade to add Norse components. You can choose between seven different door designs, which you attach the same way you would attach a door from IKEA, and seven rich colors. By adding top and side panels, you create a second skin for the cabinet, and it can either match the door or create an interesting contrast. Finally, you have a variety of knobs, pulls, and legs to finish the look. If you want even more customization, we have a DIY Finish, which means that it’s prepped and primed to be painted in any color.

Storage Cabinet Astrid in Perfect Gray by Norse Interiors

Photo by Norse Interiors

What kind of furniture does Norse upgrade?

LL: We currently focus on storage units, TV stands, and sideboards, all using IKEA’s ‘Besta’ as the base, but we’re launching a second product line before the end of the year. Our goal is to be able to offer a Norse product for every room in a home, so we’re adding more products continuously and communicate new launches via our Instagram @norseinteriors.

What are some of your best-selling upgrades, styles, colors, etc.?

LL: When it comes to patterns, the fishtail-inspired pattern ‘Eleanor’ is so far the most favored one, followed by ‘Eva,’ which is our most glamorous pattern in my opinion. Lately, I’ve been quite surprised about what colors customers have been choosing; instead of the classic neutrals, our absolute best-seller is our Tanned Leather, followed by Pale Mocha, which is the perfect dusty blush color. When it comes to hardware, the ‘Elisabeth’ knobs, in chrome and brass, are very popular at just $9.

Storage Cabinet Marie in Tanned Leather by Norse Interiors

Photo by Norse Interiors

How do you typically work with interior designers?

LL: A big part of our customer base is interior designers, and we love to work with designers, who naturally are very creative and often comes up with solutions we haven’t considered. Our recently launched DIY Finish option is, in fact, a result from an interior designer. We’re currently also working with a designer, who is looking to have a custom pattern that is exclusive to them. That’s something we definitely will consider if the project is large enough. Finally, as an Ivy user, you also get an exclusive discount when entering “Ivy” at check-out.

Can you offer designers some tips of best practices for making the most out of Norse?

LL: Custom furniture usually takes months to produce, and it’s pricey. With Norse, designers can choose the components they like from our website, and get them delivered to their doorstep or directly to the project site in just a couple weeks. And as I mentioned, we do consider exclusive designs and finishes for larger projects. They can get creative not only when it comes to the patterns and colors, but also by how they present the cabinet. From mounting the cabinet to the wall, to placing it on the floor, or giving it extra height with legs, there are so many final touches that make it a one-of-a-kind piece.

Sideboard Marie White Lace and Ambrosia Maple wood top by Norse

Photo by Norse Interiors

In your opinion, why is it important for designers to embrace business management software such as Ivy to streamline their daily workflow with clients and vendors?

LL: Like most people, I feel like the hours of the day are never enough and that’s why I try automating as much as possible, while also streamlining processes and admin tasks. Using software like Ivy makes work so much more efficient, which means that more time can be spent on the creative (fun) part of the job.

What’s next for Norse?

LL: We’ll be launching a new product line, geared towards the bedroom, before the end of the year. We’ve gotten a lot of requests for this particular system, and it’s really fun to let product development happen organically like that. Within just a few weeks, we’ll also be adding a premium version of an existing product, through a partnership with a woodshop specializing in local wood and craftsmanship. It’s something we’ve been working on for a long time, and we’re so excited to launch it finally!

TV Stand Astrid in Classy Navy by Norse Interiors

Photo by Norse Interiors

9 Ivy Features Designers are Thankful for This Thanksgiving

Thanksgiving is a time for reflection and giving thanks. A time for reconnecting with family and taking a break from our crazy lives to count all of our blessings. In the spirit of Turkey day and giving thanks, here are 9 Ivy features designers are thankful for this holiday season.

The Ivy design community

“Whether they know it or not, Ivy Members have been my mentors and motivators. When I questioned quitting my day job to start a dream, there was so much support and success stories. I would not have taken that leap without the Ivy community.” – Kelli Esposito, Harper Haus Interiors

via GIPHY

“The Ivy Facebook Group has been a wonderful resource for me. It’s a safe place where I can ask business questions without feeling judged or simply find the source of a piece of furniture. Most often, I don’t even have to ask the question myself; I can find the answer by doing a quick search of past posts. This community has made me appreciate that regardless of how seasoned you are as a designer, we all have questions, similar struggles, and are continually learning throughout our careers.” – Lisa Furtado, Lisa Furtado Interiors

Project management

“I am SO grateful for Ivy’s super simple easy to use EVERY SINGLE THING. A project management/accounting software that’s incredibly intuitive is a unicorn in this world. The Ivy design community continues to be very special, people are so generous and that’s rare in today’s world. Props to the Ivy team for putting so much hard work into keeping the community engaged and educated!” – Lucie Ayres, 22 Interiors

“Ivy allows us to handle all points of our projects in one space where the whole team can accomplish tasks together! It has changed our workflow from using multiple platforms and applications to having it all housed in one space to easily work on our projects, no matter what phase they are in.” – Lindye Galloway, Lindye Galloway Interiors

The Ivy product clipper

“I am most thankful for the product clipper and ability for clients to then approve certain items! It helps to keep track of what I need to go back to the drawing board on etc.” – Krissy Peterson, K. Peterson Design

“The Ivy Product Clipper! Run, don’t walk, and download this feature today, it is THE BEST! I used to manually type in all product information into excel to communicate and manage each clients’ prefab and custom pieces. Now we just clip, send, and can generate custom tear sheets instead of spending countless hours putting together presentations!” – Liz Goldberg, CAROLYNLEONA

Proposals

“I’m most thankful for the ease and use of Proposals within Ivy. When working on large big money projects a tight clean proposal is ESSENTIAL. The pictures are very helpful. They’re a great reminder for the client of what we selected and showcased in our Design Presentation. Overall I feel I am sending the client a profession well-organized glimpse of their project.” – Laura Thurman, Thurman Design Studio

“When I implemented Ivy, my clients fell in love with the proposals I sent them, in that they were able to visualize options and compare the selections in a consistent manner. Because of the streamlined process, I am able to turn around proposals more quickly than before Ivy, which always makes my clients happy.” – Staci Munic, Staci Munic Interiors

Invoicing

“Ivy makes invoicing and time tracking 1000 times easier allowing me more time to focus on the creative part of the job that I love the most.”- Jessica Tolman, Jessica Tolman Interiors

The Ivy dashboard

“The only thing that Ivy doesn’t do is design the spaces for me. I’ve been a part of Ivy since the early stages and have watch the evolution of the program. They are constantly adding things that I never knew I needed but quickly begin to add to the managing of my business. When I’m feeling that I’m not doing enough, I log into Ivy and the dashboard view gives me hope. It lets me know how far I’ve come and if I am on track with my goals that I’ve set.” – Stephanie Sullivan, Stephanie Sullivan, Interior Design Services

QuickBooks Online integration

“There are multiple things I love about Ivy. I wasn’t afraid to switch over because it integrates with QuickBooks, so my accountants were not going to have to adjust to a foreign bookkeeping program. I needed a change because QuickBooks is not set up nicely for Interior Designers. I also love that there is a place to store all vendor information. This way my assistant can see who she needs to contact for which company when placing orders. My clients love having the images on their invoices, it helps them visualize exactly what they are paying for. Lastly, I love the fast, convenient, and caring customer service!! You guys are great and answer any questions I have right away. That was so impressive to me!”– Sadie Beachy, B.S. Interior Design

“Ivy has allowed me to manage POs, proposals, and invoicing on the front end, while my bookkeeper and accountant handle QuickBooks on the backend. Everyone on my team has access to the Ivy system and QuickBooks so nothing falls through the cracks and the books are always balanced!” – Claire Staszak, Centered by Design

Ivy’s Mobile App

Client communication

“Ivy helps enrich relationships with our clients by having the ability to send cohesive invoices and maintains all internal information for our projects. The various features have helped us streamline our communications, deadlines, and tracking products.” – Jessica Lynn Williams, Hendley & Co

“My business has grown exponentially since joining ivy. I am able to build trust and referrals largely due to the clarity that the invoicing & dashboard provides to the client. Because I use the product clipper the way it was designed, the clients can see exactly what they are ordering and what room it goes in. This is key as clients can often forget and really need a visual aid, not just a line on an invoice. It has demystified the process to clients and saves me many hours per week!” – Vanessa Helmick, Fiore Home

Behind the Design: Lauren Li of Sisällä

Behind the Design: Ivy Design Firm Sisällä – Melbourne, Australia

Lauren – how did you get where you are today?

Lauen Li: I have always wanted to be an interior designer and I’m still so passionate to have the privilege to design the interiors for our client’s homes. Sisällä began quite organically as I took on projects whilst working as an interior designer at an architectural practice. I have experience at some of Melbourne’s top architecture practices working on commercial and retail interior design. It was at these architectural practices that I learned many different software programs and worked with some talented people. I also worked on high-end residential interiors in London, which was an incredible experience in historical and luxurious interiors.

I studied Interior Design & Decoration at Royal Melbourne Institute of Technology (RMIT) straight out of secondary school then went onto the Bachelor or Arts in Interior Design with honours Swinburne University. That was me sitting in the front of class taking notes!

Photo by Eve Wilson

What’s the design scene like in Melbourne, Australia?

LL: The design scene in Melbourne is thriving at the moment. Melbourne is known as the design and culture capital of Australia, it has a European feel with ornate Victorian architecture and a strong coffee culture.

The Melbourne design scene appreciates authentic design especially from Scandinavia and Italy. We have a rich community of designers and makers such as ceramicists, lighting and furniture designers. Interior designers strongly support pieces designed and made in Melbourne. This has meant that the Melbourne design scene has created a strong identifiable aesthetic.

In Melbourne, we are known for contemporary interiors with clean lines formed from natural stone and timber. Melbourne loves creating liveable luxury using black and grey with a good dose of metallic. Well-known designers are Hecker Guthrie, Mim Design, Carole Whiting and Fiona Lynch. Some Melbourne designers use a little more colour and patterns such as Doherty Design and Flack Studio.

Since Melbourne boomed during the 1850s, we’re left with an incredible array with ornate Victorian architecture. As a result, our interiors are often made up of original Victorian rooms at the front complete with original marble fireplaces and cornicing. At the rear of the property, an open light-filled extension opens out to the back garden.

Photo by Eve Wilson

Who are your favorite local vendors and people of the trade? How do you maintain healthy relationships with the vendors and tradespeople you work with?

We love to use handmade tiles by Melbourne studio Anchor Ceramics for kitchen backsplashes or fireplace cladding. Each tile is made by hand and each one is beautiful. We ensure that our project can allow the for lead-time in order for these to be custom made as they can’t be rushed.

For furniture we love Grazia & Co as they work with Melbourne’s top designers and release new product ranges. Everything is made in Melbourne, which helps keep the talented fabricators in business.

We have a fantastic cabinetmaker that we love to work with, Plane Architectural Joinery. When we work together, the process is collaborative. Rob understands what the outcome needs to be, and he thinks creatively to make it a reality. The outcome is always better with collaboration from the beginning. We believe in sharing the details of our trusted contractors, as we want them to grow their business too.

We are so fortunate in Melbourne to access the best in design from around the world and experience a thriving design community. We enjoy working with a great bunch of people; this business is all about relationships.

Maintaining healthy relationships is about mutual respect. When a vendor loans us something in order to show our client, we never take it for granted and try to return to them as soon as possible. Often we ask for bespoke pieces to be priced and we appreciate the amount of time it takes at their end.

Photo by Eve Wilson

Sisällä is known for creating highly personalized and responsive spaces with good vibes. What is your secret sauce to achieve that?

Our secret sauce in creating a highly personalized space for our clients is to listen. We like to get to know each member of the family and ask a lot of questions. We have a survey that collects information about their lifestyle, likes and dislikes, etc. Often it’s the ‘off the record’ chats that give us the biggest clue. We want to get to know what makes them tick, where are their favourite places to holiday and what are their hobbies. Then we can incorporate some of that information in the design concept. I believe that the space should say something about who lives there.

We are also a small practice, a husband and wife team. This means that from the moment we meet the client, they work with us throughout the whole process. Between Phil and I, we capture all of the information from the beginning and ensure that the project is completed successfully. We have been fortunate to have some really wonderful clients.

Photo by Eve Wilson

Many designers tell us that Instagram is the number one way they are discovered by new clients. What’s your Instagram strategy?

Maybe it’s not a strategy so much; it’s just that I find social media as an easy way to be social. It’s fun to flip through the stories to see what people are up to and say a quick hello! Don’t overthink it. It’s been fun to connect with designers from as far as Norway to New York though little chats on Instagram.

I have seen a boost in my followers since I started writing as the Interior Design Contributor for popular blog The Design Files. A few clients have found me though Instagram, however, word-of-mouth and referrals seem to be the number one way clients get in touch. I’ve actually found it’s not one single thing, for example they follow me onInstagram and also read an article on The Design Files and a friend-of-a-friend mentioned us. It appears that our clients have done their research before they get in touch with us.

Photo by Tess Kelly

How does designing make you feel? What’s your business mantra?

Our business mantra is we design spaces with good vibes, for good times. We mean this sincerely. We design for our clients; it’s not for us or to inflate a designer ego. We believe that good design can greatly enhance daily life.

When I’m designing a space, I love to imagine how our clients will use the space. How the light comes in during different times of the day, how they will use the storage we have designed and how the space will function when entertaining. Our designs are the backdrop to everyday life and those special events.

A client has told me that sometimes she will just step into the formal lounge room to admire the space and that makes me feel happy.

I love nothing more than to get in the zone, put the tunes on and get designing. I’ll have a SketchUp model going, material samples, and an InDesign presentation cooking at the same time. It’s really satisfying when a design concept comes together.

Photo by Tess Kelly

What are some common business dilemmas you face and how do you navigate them?

There are many business dilemmas! Where do we start? When running a business, there are so many hats to wear and a lot of them don’t have anything to do with design. It can be tricky to ‘find time for design’ and I often feel like I’m flipping from one thing to the other. Staying focused on one thing is difficult when managing multiple projects, as well as taking care of marketing opportunities and meetings throughout the day. I’m sure many of you can relate.

I also realise that I’m a control freak! I like to do everything myself so I have had to learn to delegate. I am fortunate to know many talented architects, illustrators, and designers from working at architectural practices that I can call on. I need to surround myself with people that have better skills than me, which isn’t hard. I’m constantly learning.

Photo by Tess Kelly

Do you regularly attend trade markets and conferences? If so, which ones and what’s your strategy?

I make an effort to attend two trade fairs in Melbourne (Denfair and Decor & Design) and one international fair per year where possible. I headed to the Salone del Monile Milano last year and it is so intense that it feeds my design soul for a good year ahead. I’m heading to the Stockholm Furniture Fair next year and I’m really excited to explore Sweden and immerse myself in design.

I try to attend local events and seminars as I find it so inspiring and I always take something away. Plus, it’s a nice way to catch up with past colleagues and designers.

Photo by Tess Kelly

Why did you choose Ivy as your software of choice for your design business?

We searched online for ‘interior design software’ and found Ivy. We were doing a lot of decorating projects at the time and it felt like we had struck gold. We haven’t looked back.

Photo by Tess Kelly

What’s an Ivy feature you can’t live without?

My favourite feature is the ‘Create Purchase Orders’ function. This saves us so much time in sending out a million emails and trying to capture all of the items from the vendor. One click of that button and it happens by magic!

Photo by Tess Kelly

How has Ivy transformed the way you run your design business?

Since we’ve used Ivy, we have so much more control on our projects. It’s an easy process for the client to approve the items they want, they can do it in their own time and see the total adjust. Prior to Ivy, we would print out a spreadsheet and use a highlighter to select what the client wanted to go with. There is so much room for error, and we made a few!

Photo by Tess Kelly

What do you learn from the Ivy Designer Network?

The biggest thing I have taken away from the Ivy Designer Network is the spirit of sharing and the entrepreneurial advice. Since I joined The Ivy Facebook group, I started the Melbourne Interior Designers Network. It’s been amazing to connect with some talented and lovely local designers and meet in real life.

The entrepreneurial spirit of the group gave me the courage to launch a new part of our business. So I have all of you to thank. We launched ‘apartment’ earlier this year. It’s a space where we hold Studio Sessions for interior design professionals to up-skill and we’ve had a wonderful response. The space is completely shoppable with local design, artwork and ceramics alongside Danish pieces. We wanted to create a inspiring space to connect with other designers and learn some new skills. It’s been a lot of fun and it’s been keeping us so busy!

Photo by Tess Kelly

Behind the Design: Maureen McDermott of Winter McDermott Design

Behind the Design: Ivy Design Firm Winter McDermott Design – Sag Harbor, NY

How did you get where you are today?

Maureen McDermott: I’m originally from Long Island and lived in Manhattan for 10 years while going to design school at NYSID and working for architects and design studios. After starting a family, my husband and I decided to move to the East End of Long Island for a quieter pace of life. I started Winter McDermott Design in 2013 and now have a design studio in Sag Harbor.

Behind the Design: Winter McDermott Design

Photo by Jacob Snavely

What is Winter McDermott Designs approach to design and client interaction?

MM: We love approachable, calm, minimal, and tranquil interiors. Design for us is creating homes for our clients where they can escape their every day stresses and really relax and feel at home and happy. Our interaction with clients always comes from a place of honesty and transparency. We care (a lot!) and their happiness really matters to us.

Photo by Jacob Snavely

You’re based in Sag Harbor, New York…Who are your favorite local vendors and people of the trade?

MM: We adore Ruby Beets in Sag Harbor. They have special trinkets that always add something fun to any space. Another favorite is Home Nature who has some really beautiful textiles.

Photo by Jacob Snavely

How do you maintain healthy relationships with the vendors and tradespeople you work with?

MM: Treating them with respect and kindness at all times is really important. We are all in this together!

Photo by Jacob Snavely

Have you joined any design communities?

MM: No I haven’t felt a need to. I have a lot of supportive friends who are in the industry that are able to be a source of inspiration and comfort.

Photo by Jacob Snavely

How does designing make you feel? What’s your business mantra?

MM: It makes me feel accomplished and fulfilled. I’ve had clients cry, scream, and be their authentic selves when walking into a completed home. It really is like nothing else. The feeling of happiness you can get by making others happy is indescribable.

Photo by Jacob Snavely

In moments of clients dilemmas or design block, how do you pick yourself back up?

MM: I think about it constantly for about a day or two and then just tell myself to move on. Having a family really puts the small things into perspective. I try not to waste too much time on negative thoughts.

Photo by Jacob Snavely

How do you define professional success? How do you define personal success?

MM: Professional success to me is being excited to go to work everyday. I’ve created a life and business where I am truly happy and love what I do. Personal success is having great friends and family. My family is everything to me and are able to really ground everything I do.

Photo by Jacob Snavely

Why did you choose Ivy as your software of choice to centralize your business management needs?

MM: I love that it ties to my QuickBooks Online account. My bookkeepers don’t need to learn another software program. Instead, they use QuickBooks while I use Ivy and we’re able to find a common way to work.

Photo by Jacob Snavely

What’s an Ivy feature you can’t live without?

MM: There’s so much. We are in Ivy everyday for hours and I’ve become so dependent on it. “Add new payment” and “make a payment” are invaluable with keeping track of money in/money out.

Photo by Jacob Snavely

Would you recommend Ivy to a designer friend?

MM: Yes for sure. So many designers I know are literally still using Excel to keep track of everything. I think Ivy creates a very professional way to stay organized and I don’t think an interior business should be without it.

Photo by Jacob Snavely

Photography by Jacob Snavely

This is How a Bookkeeper Can Increase Your Design Firm’s Bottom Line

Know your reasons to hire a bookkeeper! Get that money!

A few common reasons a design firm will hire a bookkeeper is to simply have someone categorize transactions, “fix mistakes”, or complete tedious data entry. What most people may not realize is that a good bookkeeper should be capable of much more when given the opportunity to work closely with the firm’s team. Yes, a bookkeeper should be able to do all those things while simultaneously saving the company a great deal of money by identifying tax deductions or catching vendors overages that might have gone unnoticed. The main reason a business should hire a bookkeeper is to produce accurate key figures needed to make better financial decisions and ultimately increase the design firm’s bottom line.

Proactive Approach, there is no “I” in “TEAM”

Increasing your design firm’s bottom line requires a proactive approach to success. Bookkeepers can take a great deal of tedious work off your plate and reduce the anxiety of looming back office stress which can in turn yield more time for a firm’s staff to focus on their individual strengths. One common misconception is that office work completely ends when you hire a bookkeeper, when the reality is that more of management’s time is freed up. This additional time should be used efficiently and effectively by management to focus on what they do best and further derive benefit from their hiring a bookkeeper. Increase of a firm’s bottom line is directly related to the amount of input a firm’s internal staff is willing to deliver while working with the financial team or advisors. No one wants to work on posting vendor payments when they could be dreaming up beautiful designs, but in reality, firms do not always grow on talent alone. It is important to remember that bookkeepers are not wizards that a company’s team needs to work together to make the bottom line increase. While bookkeepers can implement knowledge power, it might be cause for concern if they can magically make that bottom line grow overnight by themselves.

Importance of Standard Operating Procedures (SOP’s)

Prosperity is not generally possible without SOP’s. A good accounting firm will offer advice on best practices for your industry. Let’s face it, good bookkeepers are not cheap so firms should utilize a bookkeeper’s time effectively to save money and ultimately increase their bottom line. Firms should not have a bookkeeper spending all their time fixing and booking entries. In this age of technology, modern advances in accounting programs make it possible for bookkeepers to transcend from their previous roles as bean counters and hopefully allow them devote more time to your account on the advisory side. Good bookkeepers can offer business coaching to better your firm’s bottom line. Sometimes people choose not to follow the advice given by their accounting professional because they are unsure if it is sound advice. Choose a reputable bookkeeper and make sure they know your industry. Remember that an industry specific bookkeeper has the inside scoop into other firms success and failures, so it might be wise to take some advice on what works. Having an efficient SOP practice along with the right guidance of effective industry standards could be a game changer for your bottom line.

Reports, Reports, Reports

It’s all in the financials! The financial statements a bookkeeper produces are the lifeblood for any business. It is virtually impossible for a firm to make sound financial decisions about their future without these reports. It’s all about form and function on the financials. I’m sure our dear friend Mr. Wright wasn’t talking about accounting when he said “Form and function should be one, joined in a spiritual union”, but we like to think he was! Although it is sometimes difficult for people to understand, the financial reports are a bookkeeper’s work of art. They are not a monochrome compilation of digits, but in the mind and heart of a bookkeeper, they are a colorful tapestry of beautiful results brought to fruition. As previously discussed, these reports are compiled from a great deal of work from both the business owners and accountants. We love when firms ask reasonable questions about their financial statements. It shows that they are taking a serious interest in their firm’s growth. These reports are critical when trying to decide when to hire and fire, when to purchase inventory, what operating expenses and overhead to budget, when to convert your entity or restructure your business to drastically save on taxes, etc.

*Remember, bottom lines don’t increase overnight! It can take time for the results of your bottom line to change so choose a bookkeeper you can trust to guide you and your business into the profitable future.

–

Written by Marissa McKinney, Logistis

Meet Andie, our QuickBooks Online specialist and your new BFF

Trying to manage your design business is challenging enough without accounting. You’re a designer, not a bookkeeper, we get it. That’s why we have a QuickBooks Online specialist.

We sat down with Andie, our very own Ivy QuickBooks superstar for some answers and tips that will put your fears to rest. Check out the interview below.

What exactly do you do at Ivy?

I am responsible for providing Ivy members with dedicated QuickBooks support. I help designers with things like basic accounting questions, integration, mapping and more. Really, I’m here to make sure our designers have the emotional and technical support they need to get their Ivy-QuickBooks integration in order so they can focus less on the numbers, and more on what they love, designing.

Do most designers manage their QuickBooks account?

It’s about 50/50. Some designers prefer to manage QuickBooks on their own while others have a dedicated employee on their team or an accountant who works with QuickBooks.

Can designers connect you to their accountant?

Absolutely, designers connect me with their accountants all the time!

How can our designers contact you?

Designers can always email me with questions, they can even schedule dedicated calls if they would like to meet for an in-depth session.

One-on-one sessions? How does that work?

Designers who need help can schedule a one-on-one call with me through Calendly. The call is a dedicated 30-minute session. The content of the call varies according to the needs of the designer. I usually share my screen and walk them through their questions plus give them my best practices recommendations.

What are the typical things you cover on your one-on-ones?

I get a lot of questions about the actual sync and the mapping. Questions like “ if I make edits in Ivy are those going to go over to QuickBooks? Or “how does the mapping work?” I explain how the categories tie into QuickBooks and give my suggestions on how to efficiently map. Sometimes I’ll go over how the payments, proposals, deposits, and retainers sync over.
Often times I review the credit card processing fees, how to record them and how they feed over to QuickBooks.

What are some QuickBooks challenges you help Ivy members overcome?

With designers that are new to QuickBooks I focus on 3 major challenges:

- Helping them to understand how products and categories work.

- Making sure the mapping is done correctly.

Understanding Income and expense accounts.

What should designers NOT do?

Honestly, the integration is not complicated. If done correctly the data from Ivy should sync perfectly. However, I do recommend to avoid deleting items from QuickBooks because this often results in errors.

Why do designers like the integration?

Everyone loves that everything syncs over. It really works well and it prevents them from having to waste time because they don’t have to enter their information twice, they work out of Ivy. A lot of the designers love the integration because of the ability to edit and update on Ivy. Plus, they have peace of mind knowing their transactions and payments automatically updates.

*For QuickBooks questions and online support reach out to your dedicated account manager today to see if you are eligible for QBO support

Ivy’s Recap of WestEdge Design Fair 2018

WestEdge Design Fair, the West Coast’s premier contemporary design fair, celebrated its sixth-annual edition, the largest edition of the fair to date, welcoming 175 domestic, international, and independent brands, and more than 13,000 interior designers, architects, and other home professionals. The 2018 fair was completely sold-out which is a testament to the increasing recognition of L.A. as a global design hub.

In addition to the beautiful products on display, tastemakers and thought leads generously shared their expertise and discussed a variety of design and architecture-related topics with an intensive educational programming schedule.

Review the highlights below!

CONVO BY DESIGN PROGRAMMING LOUNGE – WestEdge teamed up with Convo By Design and designer Julia Wong to create a stylish lounge to host all WestEdge panel discussions and talks throughout the event. Guests heard from leading names in the design industry on a variety of topics with a robust schedule co-produced by WestEdge and Convo By Design, a media platform dedicated to providing inspiration to the design and architecture community. We recorded the panel discussion “Brand Development for Designers and Design Firms”, moderated by Josh Cooperman of Convo By Design featuring Lori Dennis of Lori Dennis Interiors, Richard Macias, Digital Director at Creative Spaces Group, Nick Gawith, VP Sr. Group Creative Director at Publisis.Sapient, and Ivette Serrano, Sr. Public Relations Manager at Lamps Plus. Watch the panel recording here.

MILK STAND POP-UP – This year’s edition of WestEdge offered attendees the chance to purchase unique contemporary design items at “Milk Stand”, an on-site pop-up store presented by Design Milk. Products included home accessories, architecture-inspired jewelry, and more.