Why Interior Designers Should Choose a Professional Over a Software Company to Review their Financial Statements

For interior designers using Studio Designer for their Project Management and Accounting Software, Year-End Financial Review is best handled by professionals specializing in financial services, such as accountants or financial advisors, rather than a software company. Here’s why and who should ideally perform these reviews:

1. Industry-Specific Certified Public Accountants (CPAs): CPAs have the necessary expertise in accounting principles and tax laws to conduct thorough financial reviews. They can provide insights into financial performance, identify areas for tax savings, and ensure compliance with accounting standards.
2. Industry-Specific Accountants with 15+ Years of Public Tax Experience: For smaller interior design firms (less than $10M in sales), a skilled accountant may be sufficient for compiling and preparing financial records for review. However, for the actual review, a higher level of expertise might be required.

Reasons a Software Company Should Not Conduct the Review:

1. Conflict of Interest: A software company that provides accounting or project management tools for interior designers might face a conflict of interest if it also offers financial review services. This could lead to questions about the financial data's impartiality and the review's integrity.
2. Lack of Specialized Expertise: Software companies excel in creating tools that facilitate business operations, finance, and accounting software. However, they are not typically staffed by certified accounting professionals who are qualified to conduct official financial audits or reviews.
3. Regulatory and Compliance Issues: Financial reviews must adhere to strict regulatory standards. Software companies generally are not equipped to stay updated on the latest accounting regulations or to ensure that their reviews meet these standards.

To ensure transparency, accuracy, and compliance, interior designers should look to independent and qualified financial professionals to conduct their Year-End Financial Reviews. This approach avoids potential conflicts of interest and leverages the specialized expertise needed to gain accurate financial insights and guidance.

 Navigating the complexities of Year-End Financial Reviews can be daunting, but the importance of having them done right cannot be overstated. 

Keep designing beautifully, and let the experts handle the numbers!

Angela Roork, Studio Designer Financial Consultant