Interior designers are creative by definition…which is why they may dread financial tasks like bookkeeping and filing taxes even more than the average taxpayer.

But the right tax prep, tools, and expert insights can make tax season as painless as possible. And understanding what deductions you can and can’t take will ensure that you’re not leaving any money that you’re due on the table.

Here are the tax prep tips* to keep in mind so you can feel confident that you’re paying (not overpaying!) your tax bill and maximizing all of your eligible deductions before you sign and submit your tax forms.

Treat Every Season as Tax Season

No one loves tax season…not even accountants! But if you have the right systems in place and keep taxes in mind year-round, tax deadlines are a lot less overwhelming.

By setting up an efficient bookkeeping system that keeps the various financial aspects of your business in tip-top shape all year long, finding a tax preparer with a deep understanding of the design industry, and considering paying quarterly taxes for your interior design business instead of tackling it just once a year, you can avoid stressful looming deadlines and expensive end-of-year surprises.

Find the Right Specialist

Your business is nuanced…and so are your taxes. With that in mind, one of the single most important things you can do to set yourself up for a smooth tax process is to enlist the help of a tax preparer who specializes in creative clients like interior designers.

They’ll have a broader knowledge base than a general accountant about issues like a designer’s bookkeeping needs and best practices, your responsibility for different types of taxes, and how to find lesser-known deductions specific to the industry.

If you don’t already have an accountant you love (or if you’re looking to switch from a generalist to someone who has more experience working with interior designers), check out Zena’s Industry Directory. Find full-service accounting experts like Logistis, a cloud-based accounting firm that helps creative entrepreneurs understand and automate their finances, and Designer CPA, which saves clients an average of $6k on taxes in their first year.

Use the Smartest Software

From creating purchase orders to submitting and tracking invoices, recording payments, and managing payroll, bookkeeping tasks are likely your least favorite parts of running an interior design business. But they’re also key to its financial health.

Accounting software is essential for managing it all, but there are a lot of options out there. Instead of paying for general one-size-fits-all business software, opt for programs specifically created for the business of interior design, which will have tools and workflows especially geared towards how you work with various clients and vendors, and how you collaborate with members of your team across different projects.

You can also learn to leverage purchasing and reconciliation software built for interior designers, like Zena. The new suite of software tools helps streamline purchasing processes through real-time budgets with helpful alerts, time-saving intuitive purchase reconciliation, and easy-to-generate custom reports.

Know Your Tax Types

As a small business owner, you have to pay more than just one type of tax. There are actually three major types of business taxes that most interior designers are responsible for:

• Income tax: all of the revenue generated by your business.

• Payroll tax: if you have part- or full-time W-2 employees, you’re subject to both state and Federal taxes for those wages. (Employers are not responsible for payroll taxes for 1099 contractors, however.)

• Sales tax: when you purchase and resell wholesale goods for your clients, your profits from the resale may be taxable. In most cases, the client is responsible for the goods because they are the “end-user.” But in specific cases (like design fees that are based on a markup of goods), sales taxes do apply. These regulations vary state-by-state — and become even more complicated when you live in one state, but do work in another — so it’s important to research, or work with your accountant to understand, the specific laws in the states where you live and work.

Allow Ample Time

It seems so obvious…but most of us have been guilty of procrastinating on filing our taxes at some point or another. But tax preparers book up quickly during tax season, and nothing is more stressful than fighting against a ticking tax clock. Even if you file for an extension, submitting taxes late only compounds the issue, resulting in late fees and interest charges if taxes are owed.

Aim to gather your paperwork and book an appointment as soon as possible. Whether you end up owing money or are due for a refund, knowing your tax responsibility sooner is always better. (And if you’re lucky enough to get a refund, the sooner you file, the sooner it will hit your bank account!)

Don’t Miss a Deduction

You work really hard for your money, so make sure you know all the different types of business expenditures you’re able to deduct from your tax bill. Even small purchases can really add up over the course of a quarter, or a year!

Here are some of the top deductions for interior designers:

Do a Post-Tax Assessment

We know that once your taxes are done and dusted, the last thing you want to do is think about next year’s taxes.

But if you take just a few minutes to do a quick assessment of the process, you can avoid hitting the same time-consuming, frustrating snafus next year. Were you missing receipts for potential deductions? Are you missing out on business tools like Zena that were created to save interior designers time and money? Did you get hit with an unexpected tax bill by doing taxes just once a year instead of quarterly?

Taking note of any hiccups you came across during this year’s tax process can help you save time, stress, and pocket more of your hard-earned income the next time taxes are due.

*The material in this article is for informational purposes only, and is not meant to be a substitute for professional tax, legal or accounting advice. Individuals should consult their own tax, legal or accounting advisors regarding their taxes and related issues.