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Bookkeeping for Interior Designers

Published October 2026 | By Ray Chowdhury, CPA & CTRC

Interior designers often earn money two ways: design fees for their time and markup on furniture and materials bought for clients. Mixing the two in the books hides which side of the business is profitable.

Separate design fees from product sales

Use separate income accounts for hourly or flat design fees and for product sales. Pair product sales with a matching cost-of-goods account so you can see your true markup. A clear chart of accounts makes this easy.

Client deposits and purchasing

Designers often collect deposits before ordering furniture, fabric, or fixtures. Track deposits by client and project, and match each vendor purchase to the client it's for. That way you always know how much client money is in your account and what's still to be ordered.

Reimbursable expenses

Shipping, receiving, installation, and trade fees passed through to clients should be tracked and billed consistently. Unbilled reimbursables are a common source of lost profit. See invoice tracking tips.

Sales tax on products

When you resell furniture and materials to clients, sales tax rules apply, and design services may be treated differently from product sales. Confirm how your invoices should be structured in New York and keep resale documentation organized. See our sales tax guide.

Track profitability by project

Hours, fees, product margins, and reimbursables for each project show which clients and project types are worth pursuing.

For solo designers

Studio space at home may qualify for a home office deduction, and you'll want to plan for self-employment tax.