Finance management may not be the most glorious part of an interior designer’s job, but it is the most critical. Without it, you can easily see your decorating dollars go down the drain and your profits away from the pipeline.
Luckily, accounts and finance management is not that difficult, nor does it take up a lot of designing time. All you have to do is be more proactive towards bookkeeping and find a structured way to make the process smoother. And sweating over finances will be a thing of the past!
In this guide, let’s take a look at some ways you can make finances a bit less complicated (and intimidating) for your interior designing business.
This should go without saying, but each interior design project should start with a proper budget. However, instead of writing down the accumulated expense, the account should give you a detailed list of all the elements involved in the project.
List down all the fundamentals, including furniture, cost of raw materials, repair cost, installation fees, flooring, artwork, accessories, and consulting fees. Give each element a dollar estimate according to the desired outcome.
Sum up all the estimates along with a 10 percent contingency reserved for unexpected expenses.
Keep revising the list as you go down the project to ensure you are on track when it comes to budget.
Monitor your expenses and balance your budget as you go along with the interior designing project. For example, if your budget for accessories is $1200, but you only spend $800 – you can balance the remaining $400 to other elements instead of dipping into your emergency funds.
While it may be easy to get caught up with the project and forget all about the budget – remember that maintaining finance is critical to the project’s overall success.
Take some time off your hectic schedule each day or once a week to get in touch with your financial reports. Letting those entries get behind means having to retrace steps and spend a large amount of time to catch up on all the billing.
At the very least, regular bookkeeping will limit the occurrence of any end-of-the-year surprises on the budget front.
If you are low on budget, going bargain hunting is one of the best ways to keep a project in line with suggested finances. Some of the best places to start are the discount furniture shops, estate sales, and even yard sales.
Online vendors such as Craigslist and eBay also present the interior designers with myriad choices when looking for a good bargain – without compromising on the quality.
Look for a financial advisor if managing finance becomes a chore for you. While it may be an extra investment, advice from a professional and reliable person always pays off. The right person will maintain your records and financial books for better profitability and give you essential suggestions to keep your business on the road to improvement.
Look for a financial advisor with the right knowledge and understanding of your industry and role as an interior designer. Ask around for referrals from friends, family, and colleagues or search the internet for the best service provider.
Manual bookkeeping is a thing of the past. Thanks to technology, you can keep your records straight and clear with a simple click of a button.
Use software that is project-centric and allows ease of transparency. Reporting should be mostly automated, so no time from the project is wasted, and instead – reports and workflow is seamlessly integrated.
These were just some tips to help you get started on a solid business financial plan. As you are aware, finance is the backbone of an interior decorating business. The lack of it can crumble the overall success of your project and minimize your revenue.
However, with these tips, you can better manage your finances and get the maximum bang for your bucks. Try them out and get a clear picture of your financial health. Good luck!