How to Prepare Your Interior Design Business for Tax Season

2020 has been a year like no other, so preparing your 2020 taxes will likely be different than in years past, too. While there remain the typical standard procedures interior designers should follow, a set of tax law modifications prompted by COVID and other implications of the CARES Act have created some changes that interior design business owners need to be aware of. 

This article will take you through everything you need to know to get your interior design business ready for tax season this year.

Bookkeeping Basics for Small Businesses

Of course, the best way to get your taxes together for tax season is to be on top of your financials throughout the year. Our previous article on how to build a tax preparation strategy can help you smoothly sail through tax season going forward is a comprehensive guide to small-business bookkeeping, but here are a few quick bullet points to give you the basics:

Tax Prep Tips for Small Businesses During Tax Season

In an ideal world, we are preparing for tax season all year long, following our weekly, monthly, quarterly, and annual checklist. But realistically, many interior design business owners will have some catching up to do as the tax deadline (either March 15 or April 15, depending on your business’s legal entity type) approaches. The tips below are based on your using Design Manager, which is an accrual-based program, but these tips apply however you’re doing your taxes.. 

Using Design Manager to Clean Up Your Taxes

Snafus can happen, and Anup Thakkar of Ledger Financials says it’s possible to undo tricky problems, especially if you have Design Manager. Here’s how Anup says you can use Design Manager to fix various accounting problems, by organizing these key reports:

Tax Tips If You Received PPP and CARES Act Assistance

If you received funds from the government’s Paycheck Protection Program (PPP), similar COVID-19-relief grants from city, county or state and/or Small Business Association loans, you must reflect that assistance as a stipulation of CARES Act. Both Priya and Anup shared their expertise to summarize everything you’ll need to prepare this additional part of your tax filing. Be sure to have ready: 

Preparing taxes for your interior design business this year will likely take extra effort than in years past, but starting now will help you get the job done with as little stress as possible. Working with bookkeepers and tax professionals who are familiar with the interior design business model will go a long way to ensuring you are filing properly. And of course, using a project management and accounting software like Design Manager can help you avoid any pitfalls to begin with. 

If you’re not already using Design Manager, sign up for a free trial today to see how easy it can be to stay on top of your taxes! 

These Trends, will shape the future

Introduction

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New design composition
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Conclusion

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Greg Palmer
11 Jan 2022
5 min read
Margot LaScale
Margot is a writer and interior designer based in the NYC area. She is passionate about keeping up with the latest architecture and design news to not only stay informed, but inspired.
Margot LaScale
Margot is a writer and interior designer based in the NYC area. She is passionate about keeping up with the latest architecture and design news to not only stay informed, but inspired.

These Trends, will shape the future

Introduction

Mi tincidunt elit, id quisque ligula ac diam, amet. Vel etiam suspendisse morbi eleifend faucibus eget vestibulum felis. Dictum quis montes, sit sit. Tellus aliquam enim urna, etiam. Mauris posuere vulputate arcu amet, vitae nisi, tellus tincidunt. At feugiat sapien varius id.

Eget quis mi enim, leo lacinia pharetra, semper. Eget in volutpat mollis at volutpat lectus velit, sed auctor. Porttitor fames arcu quis fusce augue enim. Quis at habitant diam at. Suscipit tristique risus, at donec. In turpis vel et quam imperdiet. Ipsum molestie aliquet sodales id est ac volutpat.

Man pinning images on wall
New design composition
Dolor enim eu tortor urna sed duis nulla. Aliquam vestibulum, nulla odio nisl vitae. In aliquet pellentesque aenean hac vestibulum turpis mi bibendum diam. Tempor integer aliquam in vitae malesuada fringilla.

Elit nisi in eleifend sed nisi. Pulvinar at orci, proin imperdiet commodo consectetur convallis risus. Sed condimentum enim dignissim adipiscing faucibus consequat, urna. Viverra purus et erat auctor aliquam. Risus, volutpat vulputate posuere purus sit congue convallis aliquet. Arcu id augue ut feugiat donec porttitor neque. Mauris, neque ultricies eu vestibulum, bibendum quam lorem id. Dolor lacus, eget nunc lectus in tellus, pharetra, porttitor.

"Ipsum sit mattis nulla quam nulla. Gravida id gravida ac enim mauris id. Non pellentesque congue eget consectetur turpis. Sapien, dictum molestie sem tempor. Diam elit, orci, tincidunt aenean tempus."

Tristique odio senectus nam posuere ornare leo metus, ultricies. Blandit duis ultricies vulputate morbi feugiat cras placerat elit. Aliquam tellus lorem sed ac. Montes, sed mattis pellentesque suscipit accumsan. Cursus viverra aenean magna risus elementum faucibus molestie pellentesque. Arcu ultricies sed mauris vestibulum.

Conclusion

Morbi sed imperdiet in ipsum, adipiscing elit dui lectus. Tellus id scelerisque est ultricies ultricies. Duis est sit sed leo nisl, blandit elit sagittis. Quisque tristique consequat quam sed. Nisl at scelerisque amet nulla purus habitasse.

Nunc sed faucibus bibendum feugiat sed interdum. Ipsum egestas condimentum mi massa. In tincidunt pharetra consectetur sed duis facilisis metus. Etiam egestas in nec sed et. Quis lobortis at sit dictum eget nibh tortor commodo cursus.

Odio felis sagittis, morbi feugiat tortor vitae feugiat fusce aliquet. Nam elementum urna nisi aliquet erat dolor enim. Ornare id morbi eget ipsum. Aliquam senectus neque ut id eget consectetur dictum. Donec posuere pharetra odio consequat scelerisque et, nunc tortor. Nulla adipiscing erat a erat. Condimentum lorem posuere gravida enim posuere cursus diam.

Greg Palmer
11 Jan 2022
5 min read