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As a business owner, it can be challenging to know what is considered a business asset and how it impacts interior design accounting. A business asset is any item or resource, physical or intangible, that a business entity owns or controls that can be used to create future economic benefits for the company. Interior design businesses often work with both physical objects and ideas, so identifying assets is a valuable skill. Logistis for Designers is here to help with a guide to some common assets interior designers are likely to have at their disposal.
Furniture, Fixtures, & Equipment
Businesses that operate in physical spaces can have both a building to operate in and items stored there. Those items are often referred to in accounting as “Furniture, Fixtures & Equipment” or FF&E. For interior design accounting, FF&E often encompasses more than just office supplies but also the decor and materials used to conceptualize or display designs. This makes FF&E a particularly valuable asset for interior designers. Logistis for Designers can help you account for the FF&E under your business and determine its value.
Intellectual Property
Your interior design business’s intellectual property (IP) is one of its most valuable assets. IP includes patents, trademarks, copyrights, and trade secrets. For interior design, IP assets protect your design concepts, which helps distinguish you from others in the industry. IP is often the primary edge you have over your competitors, making it valuable to maintain.
You can monetize your intellectual property through licensing, franchising, or selling products resulting from your designs. Logistis for Designers can assist with the digital management of IP with software tools like Houzz Pro or Studio Designer.
Human Resources
Your employees are another key asset of your interior design business. The skills, knowledge, and expertise they bring to the table help to drive business success. Having the right workforce helps in running business operations efficiently, meeting customer demands, and making effective business decisions. Investing in your employees, from their training and development to their benefits and incentives, is effectively developing an asset that can strengthen your business. Your employees’ pay, time off, and benefits are also a major factor in accounting for your business.
Business Reputation
Your business reputation is another intangible but valuable asset that can significantly affect your interior design business. Though it is a concept, reputation can have very tangible impacts on a business’s success. A positive reputation can attract new clients, increase customer loyalty, and enhance your business’s overall value. On the other hand, a poor business reputation can result in losing existing clients, negative reviews, and, ultimately, diminishing profits.
With the help of performance indicators and profitability analysis, Logistis for Designers can help you identify how your reputation is impacting your business.
Know What is Considered an Asset With Interior Design Accounting From Logistis for Designers
It can be challenging to identify and track assets, particularly for interior designers who often deal with more abstract concepts. The team at Logistis for Designers can assist you in identifying and evaluating your assets. With both monthly accounting packages and personalized one-off services available, we can accommodate your business needs so you can do what you love. Call today to schedule an appointment to learn more about your assets and how to take advantage of them.
Do you have additional questions about this topic? Please contact us and we will be happy to answer any questions you may have!
