Managing the financial side of your interior design business doesn’t have to be overwhelming! We’ve put together a fabulous list of 59 different expenses across a variety of categories to help you budget like a pro. From monthly must-haves to sneaky hidden costs, we’ve covered everything you need to know.
And because we’re all about keeping it easy and stress-free, we’ve included FAQs to answer your burning questions and help you manage your expenses with confidence.
Ready to conquer your finances and focus on designing dreamy spaces? Let’s dive in and take control of your business expenses together!
Table of Contents
Monthly interior design business expenses
Managing monthly expenses is key to keeping your interior design business running smoothly. Here’s a closer look at common costs and tips to handle them effectively.
1. Rent or office space costs
Rent for your office or studio is a significant expense, but it’s also your creative haven. Track this cost by setting up automatic payments and keeping records handy for tax season. Consider co-working spaces to save money.
2. Utilities
Utilities like electricity, water, internet, and phone bills are essential. Monitor these expenses by reviewing bills monthly. Opt for energy-efficient equipment and bundled service plans to cut costs while maintaining a comfortable, connected workspace.
3. Software subscriptions
Design tools and project management software are essential investments. To track these expenses, list all subscriptions, note renewal dates, and use budgeting apps to stay organized. Look for yearly plans to save money on your favorite tools.
4. Employee or contractor salaries
Paying your team is a crucial expense that supports your business’s success. Use payroll software to track payments, taxes, and benefits with ease. For contractors, maintain clear contracts and detailed invoices. Budget ahead to handle seasonal workload changes and ensure everyone is compensated on time, helping you maintain strong, reliable partnerships.
5. Freelancer or consultant payments
Freelancers and consultants offer flexible expertise for your projects. Track payments by setting clear agreements and using invoicing tools. Review budgets regularly to avoid overspending and consider hiring for specific tasks to keep costs manageable and focused.
6. Business insurance premiums
Business insurance protects your company from unexpected risks. Track this expense by setting calendar reminders for payment deadlines. Shop around for competitive rates annually, and ensure your policy covers everything you need for peace of mind.
7. Office supplies and consumables
From stationery to printer ink, these small expenses add up. Track purchases using receipts and a monthly expense log. Buy in bulk for frequently used items to save money and keep your workspace stocked and stress-free.
8. Transportation and travel expenses
Getting to client meetings, site visits, or sourcing trips adds up quickly. Track gas, mileage, parking fees, and public transportation costs using apps or a mileage log. Save receipts and categorize expenses for easier budgeting. Consider carpooling or combining trips to reduce costs while staying efficient and organized on the go.
9. Subscription services for stock images or design resources
Stock image and design resource subscriptions fuel your creativity. Track these expenses with a subscription tracker or calendar reminders. Explore bundles or annual plans to save money while keeping your library fresh and inspiring for clients.
10. Client entertainment or meetings
Hosting clients for meals or refreshments builds relationships but can add up. Track these costs by saving receipts and setting a monthly budget. Opt for cozy coffee spots or in-office refreshments to keep meetings personal yet budget-friendly.
11. Professional membership dues or certifications
Investing in memberships and certifications boosts your credibility. Track dues with a dedicated expense category and set reminders for renewal dates. Choose memberships offering networking or learning opportunities to ensure you’re getting great value for your investment.
12. Banking and payment processing fees
Designers often face fees beyond typical business charges, such as payment processing for invoices, credit card transaction costs, or currency conversion fees for international clients. Track these expenses closely using accounting software. Negotiate with banks for lower transaction rates or consider payment platforms with designer-friendly pricing. Regularly review statements to spot and reduce unnecessary charges.
13. Costs of purchasing or leasing equipment
Investing in tools like printers, tablets, and computers is essential for your business. Track these costs with receipts and depreciation records. Consider leasing options or refurbished devices to manage expenses while keeping your tech up-to-date and efficient.
14. Cleaning and maintenance services
A tidy, well-maintained workspace keeps creativity flowing! Track cleaning and maintenance expenses with a recurring budget line. Hire reliable professionals or schedule routine upkeep to prevent costly repairs, ensuring your office stays spotless and client-ready year-round.
Annual interior design business expenses
Planning for annual expenses helps you avoid surprises and keeps your business running smoothly.
15. Business registration and license renewal fees
Staying compliant with registration and licenses is vital. Track renewal dates with calendar reminders and budget for these fees annually. Research local requirements to ensure you’re covered and consider setting aside a small contingency fund for unexpected changes.
16. Tax preparation and filing services
Tax preparation can be overwhelming, but hiring a professional or using software ensures accuracy. Track this expense annually and keep organized records year-round. Consider a tax-savvy accountant who understands design businesses to maximize deductions and minimize stress.
17. Accountant or bookkeeper fees
An accountant or bookkeeper helps you manage finances, track expenses, and plan for taxes, making them a valuable investment. Track these fees by setting a dedicated budget line. Choose professionals experienced in creative businesses for tailored advice. Regularly review reports with them to ensure your finances align with your goals, and explore software integrations for seamless collaboration.
18. Continuing education and training programs
Staying updated with trends and skills is essential. Track expenses for courses, workshops, or certifications using a professional development budget. Look for industry-specific programs or online options to save money while growing your expertise and boosting client confidence.
19. Professional conference or trade show attendance
Conferences and trade shows inspire creativity and connections. Track registration fees, travel, and accommodations in a dedicated category. Plan early to snag discounts and prioritize events that offer networking, learning, or showcasing opportunities to make the most of your investment.
20. Website domain registration and hosting
Your website is your digital storefront, and hosting and domain fees are essential. Track renewal dates with reminders to avoid disruptions. Choose reliable providers and consider annual plans for savings while keeping your online presence polished and professional.
21. Large equipment purchases or upgrades
Big-ticket items like furniture, high-end tools, or tech upgrades are investments in efficiency. Track these expenses with detailed receipts and depreciation records. Budget for these purchases annually, and consider financing options to spread out costs when needed.
22. Subscription renewals for industry publications or magazines
Staying inspired and informed is easy with industry publications. Track renewal dates with a subscription tracker and evaluate value regularly. Opt for digital versions to save money and ensure you’re always up-to-date with the latest design trends.
23. Vendor and supplier appreciation gifts or events
Showing gratitude to vendors and suppliers strengthens relationships. Track these expenses with a dedicated category in your budget. Choose thoughtful, budget-friendly gifts or host casual appreciation events. Personalized thank-you notes can also make a big impact without overspending. Plan ahead to align expenses with key milestones, ensuring you nurture valuable partnerships year-round.
24. End-of-year employee bonuses or gifts
Year-end bonuses or gifts show appreciation and boost morale. Track these expenses with a dedicated holiday budget. Plan ahead to allocate funds fairly and consider personalized gifts or team celebrations to make your employees feel valued and motivated.
25. Annual performance reviews and raises
Performance reviews and raises reflect your team’s growth and dedication. Track these expenses by budgeting for raises early in the year. Use clear metrics during reviews to align rewards with contributions, fostering loyalty and long-term team success.
One-time or irregular interior design business expenses
Planning for occasional costs ensures you’re prepared for big moments in your business journey.
26. Initial setup of office space
Setting up your office with furniture and décor creates a productive environment. Track these expenses with detailed receipts and a clear budget. Shop sales, thrift stores, or online marketplaces for stylish, cost-effective pieces that reflect your brand’s personality.
27. Branding and logo design
Investing in branding and logo design builds your business identity. Track this expense by setting a clear budget and working with a designer who understands your vision. Prioritize timeless designs to avoid frequent updates and extra costs.
28. Legal services for contracts and agreements
Hiring legal services ensures your contracts and agreements protect both you and your clients. Track these costs by setting a dedicated budget for legal fees. Work with a lawyer experienced in design businesses and request templates for recurring needs. Keep digital copies organized for easy access and consider periodic reviews to stay up-to-date with regulations.
29. Emergency fund allocations for unexpected costs
An emergency fund is your safety net for surprise expenses. Track contributions by setting aside a fixed amount monthly. Aim for three to six months of expenses to stay prepared for anything, from equipment repairs to unexpected client delays.
30. Investment in design or tech equipment upgrades
Upgrading design or tech tools keeps your work efficient and cutting-edge. Track these expenses with a dedicated budget and research options for trade-ins or discounts. Prioritize upgrades that directly enhance productivity and client satisfaction for the best returns.
31. Software license purchases (non-subscription-based)
One-time software licenses can be cost-effective long-term. Track these expenses with detailed records of purchase dates and updates. Compare prices across vendors and ensure the software aligns with your workflow to maximize value and avoid unnecessary purchases.
32. Hiring and recruitment fees
Recruiting the right talent is an investment in your business’s success. Track these expenses by setting a clear hiring budget, including job postings, recruitment agency fees, and onboarding costs. Use digital tools to streamline the process and track applicants efficiently. Plan hiring during growth periods and consider referrals to reduce costs while finding skilled professionals.
33. Moving or relocation expenses
Relocating your business can be exciting but costly. Track expenses like movers, supplies, and setup fees in a dedicated category. Plan ahead by comparing quotes, timing moves during off-peak seasons, and allocating a budget for unexpected relocation costs.
Project-specific interior design expenses
These expenses vary by project and require careful planning to stay on budget while delivering stunning results.
34. Major client project costs
Large-scale projects, like model creation, can be pricey but impactful. Track these expenses using project management tools and detailed estimates. Break down costs into smaller milestones to monitor spending and ensure each stage aligns with your client’s budget.
35. Sourcing and purchasing materials
Materials like furniture, fixtures, textiles, paint, and wallpaper bring your designs to life but can quickly add up. Track these costs with spreadsheets or sourcing tools, ensuring accurate budgeting. Build relationships with trusted vendors for discounts and prioritize quality over quantity. Ordering samples and negotiating bulk rates can help you save without compromising your vision.
36. Delivery and installation costs
Coordinating delivery and installation is vital for seamless project execution. Track these expenses in your project budget and compare service quotes to save money. Scheduling multiple deliveries together can reduce costs and keep projects running efficiently and on time.
37. Vendor and subcontractor payments
Vendors and subcontractors bring expertise to your projects. Track payments with detailed invoices and payment schedules to stay organized. Build strong relationships by paying on time and negotiating long-term contracts for better rates and smoother collaboration on future projects.
38. Permit application fees
Permits ensure your projects meet regulations but can vary in cost. Track these expenses by including them in initial project budgets. Research local requirements early to avoid delays, and keep copies of approvals organized for future reference.
39. 3D rendering or model creation costs
3D renderings and models elevate your presentations but can be a significant expense. Track these costs per project, ensuring they align with your client’s budget. Use in-house tools or outsource to trusted professionals for high-quality results. Compare pricing between providers, and repurpose existing models when possible to save time and money while delivering visually stunning designs.
40. Sample creation or mock-up fees
Samples and mock-ups help clients visualize designs but can add up. Track these fees in your project estimates and prioritize essential elements. Work with vendors who offer discounts on samples or create digital mock-ups to save costs.
41. Custom furniture or artwork commissions
Custom pieces add uniqueness to your designs but require careful budgeting. Track these expenses with clear contracts and payment milestones. Collaborate closely with artisans to ensure quality and explore multiple quotes to find the best value for your vision.
42. Product samples and swatches for clients
Samples and swatches let clients feel confident in their choices. Track these expenses in project budgets and prioritize versatile options. Partner with vendors offering free or discounted samples to reduce costs while still impressing clients with tailored selections.
43. High-quality photography or videography for portfolio updates
Professional visuals showcase your work beautifully but can be a sizable expense. Track these costs in your marketing budget and plan shoots strategically to cover multiple projects. Work with photographers or videographers familiar with interior design to capture every detail. Explore package deals or barter arrangements to balance quality and affordability while elevating your portfolio.
Marketing and business development expenses
Investing in marketing helps you reach new clients and grow your business.
44. Social media ads
Social media ads are powerful for promoting your services. Track spending with ad platform dashboards and set clear budgets. Focus on targeted campaigns to reach ideal clients, and regularly review performance to ensure you’re getting the best return.
45. Search engine marketing (SEM)
SEM helps your business shine online but requires a clear strategy. Track expenses using campaign tools like Google Ads. Set daily budgets and focus on high-intent keywords to maximize visibility, drive traffic, and attract clients within your target market.
46. Email marketing services
Email marketing keeps your clients engaged, but costs can add up. Track these expenses by monitoring your subscription plan and email volume. Choose a service tailored to your business size, and regularly evaluate performance metrics like open rates to ensure value. Consider segmenting your audience to personalize campaigns, maximizing impact while staying within your budget.
47. Social media influencer collaborations
Partnering with influencers boosts visibility and credibility. Track these costs by setting clear budgets and outlining deliverables upfront. Choose influencers whose style matches your brand, and prioritize long-term partnerships for more authentic, impactful promotion of your design services.
48. Sponsorship of local events or charities
Supporting local events or charities enhances your community presence. Track sponsorship costs in your marketing budget. Choose opportunities that align with your brand values and target audience to create meaningful connections while promoting your interior design business effectively.
49. Client referral programs
Referral programs reward clients for spreading the word, helping you grow through trusted recommendations. Track expenses by setting a clear budget for incentives, like discounts or gift cards. Promote the program via emails and social media to boost participation. Regularly review results to ensure it’s delivering value and adjust rewards to keep clients excited about referring others.
50. Networking event costs
Attending networking events expands your connections and opportunities. Track these costs, including tickets, travel, and materials, in your budget. Prioritize events aligned with your goals, and plan ahead to make the most of every handshake and introduction.
51. Photography or videography for portfolio marketing
Stunning visuals elevate your portfolio and attract clients. Track these expenses by budgeting for shoots and editing services. Work with professionals experienced in interiors, and schedule shoots strategically to capture multiple projects, maximizing value while showcasing your best work.
52. Marketing material design and printing costs
Beautifully designed brochures, business cards, and flyers leave a lasting impression. Track these costs in your marketing budget. Opt for digital designs where possible, and work with trusted printers to ensure quality while managing expenses for printed materials effectively.
53. Brochures
Brochures showcase your services in a professional, polished way. Track these expenses by budgeting for design and printing. Choose high-quality materials and keep the design timeless to use them across multiple events, saving costs while maximizing their impact.
54. Business cards
Business cards are a classic networking tool. Track these costs by including them in your annual marketing budget. Opt for simple, elegant designs and order in bulk to save money while ensuring you’re always prepared to make lasting connections.
Hidden or overlooked expenses
These costs might not be immediately obvious but can impact your budget over time.
55. Depreciation of equipment
Equipment loses value over time, impacting your finances. Track depreciation with accounting software to stay aware of replacement timelines. Budget for upgrades early and consider tax benefits for depreciated assets to offset some of the long-term costs.
56. Backup and data recovery solutions
Protecting your files is essential. Track expenses for cloud storage or external drives in your tech budget. Invest in reliable solutions to safeguard client designs and documents, and schedule regular backups to prevent costly data loss or downtime.
57. Employee training and onboarding costs
Training new employees ensures they’re set up for success, but it comes with costs like materials, workshops, or mentoring time. Track these expenses in your HR budget and plan for onboarding during slower periods. Use templates for consistent training and consider online resources to save on in-person sessions while still fostering skill development and team growth.
58. Lost revenue during off-peak seasons
Slow seasons impact cash flow, so it’s essential to track patterns and plan ahead. Create a savings buffer during busy periods and explore promotions or alternative services to maintain income and keep your business steady year-round.
59. Cost of handling refunds or client disputes
Refunds and disputes can be unexpected expenses. Track these costs separately to identify patterns and adjust policies if needed. Clear contracts and transparent communication help minimize issues, saving money and maintaining positive relationships with your clients.
FAQs about interior design business expenses
Check out answers to these frequently asked questions.
Interior design businesses typically incur expenses such as rent, utilities, employee salaries, software subscriptions, marketing, sourcing materials, and client-related costs. Additionally, hidden costs like equipment depreciation, refunds, and off-peak revenue losses are also important to account for.
The key to tracking expenses is staying organized. Use accounting software, like QuickBooks, to categorize and monitor your transactions. DesignFiles offers seamless integration with QuickBooks, making it easy to sync your retainers, invoices, purchase orders, and more. This integration helps save time while ensuring your financial records are accurate and up to date.
Building an emergency fund is essential for handling surprise costs, such as equipment repairs or client disputes. Set aside a portion of your earnings each month to create a financial buffer. Review your budget regularly and adjust allocations based on your business needs and goals.
Yes, many interior design expenses can be deducted during tax season. Examples include office rent, software subscriptions, marketing costs, and even depreciation of equipment.
Set a clear budget for marketing and focus on strategies that provide the best return on investment (ROI). For example, prioritize targeted social media ads, client referral programs, or email campaigns. Review analytics regularly to optimize your spending and focus on what works.
DesignFiles’ integration with QuickBooks allows you to effortlessly sync invoices, payments, and transactions. This powerful combination ensures all your financial data is stored in one place, simplifying expense tracking, budgeting, and tax preparation, so you can focus on designing beautiful spaces.
By staying proactive and using tools like DesignFiles and QuickBooks, you can master your finances and set your business up for long-term success.
Ready to streamline and grow your interior design business? Sign up for DesignFiles, the top-rated platform for small and solo design firms.
