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From Chaos to Clarity: How Designers Can Master Cash Flow in Q4

Creative Interior Designers and Graphic Designers thrive on ideas, not accounting software and spreadsheets—but consistent profit requires more than great design

In the creative world, passion sometimes overshadows the practical details—like tracking each project’s true costs or monitoring client payments while new expenses pile up. As the year winds down, this disconnect becomes painfully obvious. Suddenly, tax season looms, vendors expect payment, and that “profitable project” turns out to be a money pit in disguise.

Common challenges for creative businesses:

  • Slow-paying clients (We can help manage your AR to identify those slow paying clients before it takes a toll on your business)
  • Unexpected expenses (We can help you put together a budget for your larger projects to help you stay on track)
  • Tracking costs per project – (To ensure you price your projects profitably it is essential to not just track total revenue and total expenses but understand and measure the revenue and expenses per job)

Let Q4 be the wake-up call and the perfect time to partner with an accounting solution for financial insights, to eliminate chaos, and start the new year confidently, creatively, and with positive cash flow.

Contact Tekio Advisors Today!

Fractional Controller & CFO | Small Business Accounting Blog

What if founders could simplify one of the trickiest areas: stock compensation?

Startups are always racing against time and cash—and every minute spent on technical accounting is a minute NOT spent building the dream.

Big news for private companies: ASC 718’s practical expedient lets startups use a 409A valuation to determine the current price input of equity-classified share-based awards issued to both employees and non-employees using the reasonable application of a reasonable valuation method, sparing them complex models and wall-to-wall spreadsheets. This means startup teams can focus on scaling, not sweating over share price calculations.

For founders, this is more than technical relief—it’s a chance to keep accounting streamlined and VC investor-ready, with fewer headaches before potential exits or public listings. 

Smart finance isn’t just reporting; it’s about staying nimble while building the vision ~ that’s where a Fractional Controller can help.

💡 If your startup is looking to offload the accounting and GAAP compliant financial reporting requirements for your investors (👋ASC 606, Internal Use Software, Lease Accounting) Contact Tekio Advisors Today❗️

#startups #stockcompensation #accountingforstartups #founders #ASU2021-07

#ASC718

#PCC 2018-01

#SAAS

Refreshing Cash Flow Tips for NYC Interior Designers

Cash Flow Management Tips for our Creative Interior Designer Clients

Interior design is a profession that seamlessly blends creativity and practicality. While an eye for design, and an understanding of spatial aesthetics are essential to your business, successful interior designers also require robust business and financial skills to maintain a thriving business with positive Cash flow to meet your business and personal financial goals.

Interior designers face unique challenges in cash flow management due to the nature of their projects. These challenges include:

  • Project-Based Revenue: Payments often depend on project completions, which can lead to progress billing and irregular income streams.
  • High Upfront Costs: Designers often need to purchase materials, furniture, and decor before receiving payment from clients.
  • Client Payment Delays: Late payments from clients can further exacerbate cash flow issues, leaving designers struggling to cover their expenses.
  • Seasonal Demand: The interior design industry often experiences seasonal fluctuations, with more demand during certain times of the year and lulls in others.

Strategies for Effective Cash Flow Management

1. Develop a Detailed Budget

A budget provides a clear overview of your financial situation and helps you make informed decisions on allocating expenses based upon projected revenues. A well-planned budget is the cornerstone of effective cash flow management.

2. Implement a Retainer or Milestone Progress Billings System

One of the best ways to mitigate cash flow issues is to structure your payment terms. Instead of waiting for full payment at the end of a project, break it into milestones:

  • Initial Deposit: Secure a percentage upfront before starting the project to cover preliminary expenses.
  • Progress Payments: Request payments at key stages of the project, such as after the design concept is approved or once construction begins.
  • Final Payment: Collect the remaining balance upon project completion.

This approach ensures a steady stream of income and reduces the financial burden on your business.

3. Set Aside an Emergency Fund

Set aside a portion of your earnings into an emergency fund to build a reserve that can sustain your business for at least three to six months. Having a financial cushion ensures that you can weather unexpected expenses or periods of sluggish revenue without jeopardizing your operations.

4. Negotiate Payment Terms with Clients and Vendors

Don’t hesitate to negotiate payment terms that work in your favor. For clients, establish clear payment expectations in your contracts and consider upfront deposits, early-payment discounts, or late-payment penalties. For vendors, explore options like extended payment terms or bulk discounts when purchasing frequently used materials.

5. Monitor and Reduce Overheads

Regularly review your overhead costs to identify areas where you can decrease costs and alleviate cash flow pressures.

6. Implement an Effective Accounting Solution

Modern accounting software, such as QuickBooks Online, can be a game-changer by helping you track income and expenses, monitor Accounts Receivable, monitor outstanding payments, and track your cash balance. However, outsourced accounting and bookkeeping for interior designers can provide insights into the overall financial health of your business while providing suggestions to reduce costs and insights into your most profitable projects and customers.  Let’s Talk ! Book a Virtual Meeting!

7. Cash Flow Forecast

A cash flow forecast is like a budget in that it estimates incoming cash and outgoing cash based on past performance, factoring in current economic and business conditions. It aims to help your company minimize the impact of a cash shortage by being proactive in mitigating potential issues during an economic period where costs are rising due to increased materials costs from tariffs or slow payments from customers due to rising interest rates. It may be helpful to forecast future cash flows for 3, 6, or 12 months. Contact us for our Controller and CFO services today!

Conclusion:

As an interior designer, your creative vision is your greatest asset! By implementing the strategies outlined in this guide (budgeting, structuring customer payments, and cash flow forecasting) your business can better navigate financial challenges and maintain steady cash flow so you can focus on doing what you love: designing beautiful spaces that inspire and transform living spaces!

Advantages of a 13-week cash flow model for Small Businesses in New York City

A 13-week cash flow forecast is a crucial tool that can help you forecast your cash available to meet operating expenses.

Timing differences from your net income from your profit and loss statement to the cash in your bank include the following:

  • Revenue recognized in Quickbooks vs cash received due to timing of the collection of accounts receivable.
  • Prepaid expenses – upfront cash outlays for insurance, rent, advances to suppliers, etc. while GAAP or accrual basis accounting recognizes the expenses over the respective term or when incurred.
  • Capital expenditures – Upfront cash outlays for equipment while the expense is recognized ratably over the estimated life of the fixed asset.

Advantages of Utilizing the 13-week cash flow model:

  • Flexible and Forward Looking – The 13-week horizon is long enough to provide meaningful forward visibility but short enough to adjust the model as your business adapts to changing circumstances.
  • Spend Management – By assessing your cash inflows and outflows week by week, startups and growing businesses gain a clear, actionable view of their cash position, enabling better operational control and expense / spend management.
  • Proactive liquidity & risk assessment – The model helps identify potential cash shortfalls or liquidity risks well in advance, giving startups time to take corrective action—such as needing to draw down on a line of credit, raise funds from venture capital firms, managing expenses, or assessing receivables and identifying slow paying customers.
  • Transparency with investors and banks – The model serves as a transparent, data-driven tool for communicating financial health, liquidity, and assessing working capital needs which builds trust with your investors and lenders.  Positive cash flow and working capital are important metrics for lenders and investors and as such, preparing for any compliance and reporting requirements with detailed cash flow forecasts and updates on any changes to the model is important will enable positive relationships with your stakeholders.

Accounting Advisory Tip – Diversify Funding – Concentrations in a single funding source increases vulnerability! Establishing multiple financing sources from venture capital, credit lines, and traditional bank loans, startups and small businesses reduce dependency and improve resilience against unforeseen circumstances such as rising interest rates, or tightening of credit standards.  Additionally, monitoring useful KPI’s such as AR turnover, DSO (days sales outstanding), and Inventory Turnover to ensure you are getting the best utilization of assets to generate cash flow.

Conclusion: In summary, a 13-week cash flow model is a valuable tool that helps startups and small businesses in Brooklyn, Queens, Bronx, and NYC manage cash proactively, make informed decisions, and build credibility with key stakeholders.  Let Tekio Advisors LLC focus on your small business accounting services and Cash Flow Forecasting with our Fractional CFO Services  – Whether you prefer to utilize Excel or Forecasting software such as Dryrun or Helm.