The world of interior design is a blend of creativity and technical precision. Every room you design tells a story, every piece of furniture you select carries an emotion. While the world sees beautiful spaces, behind the scenes, it involves in-depth planning, sourcing, and budgeting. And while you’re masterful at creating stunning interiors, we understand that the financial and accounting aspect of your profession might not be your favourite chapter.
Why Use Dead Simple Accounting?
For interior designers, accounting isn’t just about balancing books. It’s about understanding the unique financial needs of a profession that’s equal parts art and business. At Dead Simple Accounting, we’re adept at catering to the distinct requirements of interior designers. Let us handle the financial intricacies so you can focus on transforming spaces.
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For a comprehensive self-assessment tax return service tailored for Etsy sellers, our fee stands at a transparent £275, VAT inclusive. If you’re curious about our other offerings, do drop by our quote page for a free estimate.
What Expenses Can Interior Designers Claim?
Interior designers have a unique blend of expenses, from the artistic to the practical. Here’s a list of some typical expenses:
- Design Tools: Digital design software, productivity software, and any other specialised tools that help you execute your designs.
- Knowledge Resources: Expenses for reference books, trade journal subscriptions, and other materials that enhance your skills and knowledge.
- Advertising: Costs associated with promoting your services, be it digital or print.
- Materials & Inventory: Costs of samples, fabrics, or any other inventory used in your projects.
- Personnel Costs: Fees for creative assistance, contracted help, or any other professionals you might hire for specific projects.
- Recharged Expenses: Often, you might be procuring items on behalf of your clients. These are recharged expenses. (More on this below)
- Professional Development: Costs for attending seminars, workshops, or courses to stay updated in the industry.
- Travel & Lodging: Costs related to visiting clients, suppliers, or project sites.
- Office Expenses: Rent, utilities, and any other costs associated with maintaining your workspace.
Understanding Recharged Expenses
In the interior design world, the nuances of recharged expenses are pivotal. Here’s a breakdown:
- When you purchase items for a client’s project, often without their direct input, those costs are initially borne by you or your firm.
- You then recharge these expenses to the client, typically with a mark-up. This mark-up covers your expertise, sourcing efforts, and often carries a profit margin.
- The sales invoice to your client will detail these recharged expenses, potentially including a 20% margin. If you’re VAT registered, it will also show net VAT costs and costs before VAT. In instances where you’ve marked up the expense, the VAT charged to the client may exceed the VAT you originally paid.
- Even if the original purchase didn’t include VAT, you must charge VAT if you’re registered. This might result in clients paying slightly more than if they were invoiced directly by the supplier.
It’s essential to maintain clarity and transparency in these transactions. Dead Simple Accounting is here to ensure you navigate these complexities with ease.
Need Some Further Help?
If you have further questions or require assistance concerning accountancy for interior designers, be sure to get in touch with us!
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