Leveraging Tech to Manage Accounting in Interior Design
One of the big barriers the interior design industry faces is the reluctance to embrace the digital era. Ivy’s mission is to utilize all of the great aspects modern technology offers to make your life as an interior designer easier day-to-day. Less paper, more automation. BBK | beyond bookkeeping, a cloud-based bookkeeping and accounting service, also embraces this idea, helping small businesses across the U.S. with their books – great minds think a like!
Here, BBK shares the importance of going digital for automated and efficient bookkeeping, tips and best practices for tax season and how to avoid common mistakes, and why QuickBooks Online is the way to go!
Where is BBK | beyond bookkeeping based and which industries does your firm specialize in?
We are based in the San Francisco Bay Area and Denver, however, we work remotely and serve clients all over the nation.
BBK was named by Quickbooks as a top-20 “firm of the future” and by Hubdoc as one of the top-50 accounting firms in the nation. How are the BBK accounting and bookkeeping services unique compared to the other firms out there?
We are 100% committed to leveraging technology to automate our clients’ accounting systems and processes. We don’t deal with paper or data entry or other inefficient systems. We set up automated, real-time solutions that enable easy electronic documentation directly in the accounting platform.
BBK converted 100% of its clients to the “cloud”. In your opinion, why is it smart for a business to move their bookkeeping to the “cloud”?
Businesses simply cannot leverage the magic of the new technologies being developed if they are stuck in a desktop solution.
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What makes bookkeeping for the interior design industry complicated?
Billing customers for purchases made on their behalf and proper sales tax collection.
Businesses simply cannot leverage the magic of the new technologies being developed if they are stuck in a desktop solution.
For the Ivy designers who don’t have an accountant, why is BBK a good firm to choose?
Experience and knowledge.
What are some tips of “best practices” to offer interior designers who tackle accounting themselves?
Make sure you understand the sales tax in your state and locality so you collect appropriately. Setup and maintain a tracking system to ensure you know what you have purchased for which clients so you are sure to properly invoice them and recover your costs.
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Can you name some common accounting and bookkeeping mistakes made by interior designers? What are some ways to avoid these mistakes?
Not understanding the sales tax or income tax liability and spending the cash that is due to the government.
Not collecting the proper sales tax. In some states, for example, sales tax must be collected on the installation (service) of a taxable item.
Not understanding how profitable a project is, if at all.
Make sure you understand the sales tax in your state and locality so you collect appropriately.
How should an interior designer prep for tax season?
Make sure all income and expenses are accounted for. Send preliminary financial statements to tax accountant. Implement any tax saving strategies possible.
What are some ways interior designers can save money when it comes to their bottom line?
Understand direct costs vs. fixed & variable expenses. Analyze fixed and variable expenses and determine where any savings might be. Understand pricing and what services/products are most and least profitable. Make future decisions based on data.
Ivy syncs with Quickbooks – is it smart for Ivy designers to sync their accounts to Quickbooks Online?
Yes! Let the technology do it’s job to save you time and money!
Are you an interior designer in search of an easy interior design software and project management tool to run your business? Learn more about Ivy here.