Interior Design Accounting Services in Ontario
Interior design accounting in Ontario requires tracking project income, vendor expenses, client deposits, and HST across multiple concurrent jobs—each with different timelines, budgets, and billing stages.
The Acctax Company delivers bookkeeping and tax compliance services configured for how interior designers actually work: procurement-heavy projects, FF&E pass-throughs, retainers, progress billing, and the subcontractor ecosystem that makes design projects happen.
Whether you’re a solo designer juggling client accounts from your home office or a full-service studio managing $500,000+ in annual project volume, your financial records need to track profitability by project—not just totals in a bank account.
We build systems that give you clean numbers for every engagement.
Important Note
Note: This page covers financial recordkeeping, tax compliance, and business accounting for interior designers.
If you’re looking for the “60/40 rule” or “70/30 rule”—those are design composition principles, not bookkeeping. We handle the numbers side.
What Is Interior Design Accounting?
Interior design accounting is the systematic process of tracking project income, expenses, vendor payments, client deposits, and tax records so an interior design business can report accurately, measure profitability by project, and stay compliant with CRA requirements in Ontario.
Unlike generic small business bookkeeping, interior design accounting addresses the specific workflows of design practices:
What Interior Design Accounting Includes
Project-Based Income Tracking
Revenue coded to individual client projects—not lumped into one “sales” category. Know which projects are profitable before they’re finished.
Procurement & Vendor Management
Purchase orders, vendor invoices, FF&E costs, trade pricing, and supplier bills tracked by project.
Client Billing and Deposits
Retainers, deposits, progress billing, and final invoices managed with proper HST disclosure and audit trail.
Pass-Through Expense Tracking
Client-reimbursable costs separated from your operating expenses. No more confusion about whose money is whose.
HST Compliance
Ontario HST (13%) charged, collected, and reported correctly. Input Tax Credits claimed with proper documentation.
Accounts Receivable & Payable
Client invoices tracked from issuance to payment. Vendor bills organized by project and due date.
Month-End Financial Statements: Profit and Loss, Balance Sheet, and project profitability reports delivered on schedule.
Who This Service Is For
We provide specialized bookkeeping for every stage of an interior design business in Ontario.
Solo Interior Designers and Home Stagers
You’re running projects from your home office, managing 5–15 clients per year, and handling everything from design to procurement. You need clean books for HST filing, expense tracking, and year-end tax prep—without spending weekends on spreadsheets.
Design Studios with Project Managers
You have a team, multiple concurrent projects, and procurement volume that requires real systems. Each project manager handles their own clients, but the financials need to consolidate for reporting, HST, and profitability analysis.
Design-Build and Renovation-Adjacent Firms
Your projects include construction or renovation scope. You’re working with trades, managing contractor payments, and potentially subject to Ontario Construction Act holdback requirements.
Financial Problems We Fix for Interior Designers
Stop guessing your margins. We resolve the core accounting bottlenecks that drain design studio profits.
Project Money Mixed with Operating Expenses
Impact: You can’t tell which projects are profitable. Client deposits sit in the same account as your operating cash. At year-end, you’re guessing at margins.
Chart of accounts structured by project. Income and expenses coded to specific engagements. Profitability by project visible monthly—not reconstructed at tax time.
Missing or Incomplete Invoices
Impact: CRA denies Input Tax Credits because vendor invoices don’t show required info. Audit risk increases when you can’t prove expenses.
Invoice and receipt capture system with proper HST disclosure. Documentary requirements met before bills are paid.
Procurement Pass-Through Confusion
Impact: Client funds for FF&E get mixed with revenue. You’re paying HST on money that should be a pass-through. Markup calculations are inconsistent.
Separate tracking for client procurement funds vs. design fees. Clear audit trail from purchase order to vendor invoice to client billing.
Untracked Mileage and Home Office
Impact: You’re missing legitimate deductions because there’s no logbook. CRA disallows claims without supporting records.
Vehicle logbook setup with destination and kilometres. Home office percentage calculated correctly (limited by net income).
Contractor Payments Not Organized
Impact: You paid subcontractors over $500 but didn’t track who got what. Now you’re scrambling for T4A requirements.
Vendor/contractor ledger organized for fees-for-services. T4A information captured when payments exceed $500 in a calendar year.
What’s Included in Our Interior Design Accounting Service
A comprehensive financial management suite built specifically for the interior design workflow.
Monthly Bookkeeping
Bank and credit card reconciliation, transaction categorization by project.
Accounts Receivable
Client invoice tracking, aging reports, deposit/retainer management.
Accounts Payable
Vendor bill entry, due date tracking, payment scheduling by project.
Project Tracking
Income and expenses by project, budget vs. actual, profitability analysis.
HST Support
Filing readiness, ITC documentation review, quarterly/annual return prep.
Payroll Support
Source deduction calculations, remittance tracking, T4 preparation (if applicable).
Year-End Package
Tax-ready financial statements, T2/T1 handoff package for smooth filing.
HST and Invoicing for Ontario Interior Design Services
Mastering the 13% tax landscape and CRA documentary requirements.
Ontario HST Rate & Place of Supply
Interior design services supplied in Ontario are generally subject to HST at 13%. However, the rate is determined by the “place of supply”—where the service is considered to be made for GST/HST purposes.
Invoice and Receipt Disclosure Requirements
CRA requires specific information on invoices to support your Input Tax Credit (ITC) claims. Your invoices must show:
- Your business name (or trade name)
- The invoice date
- Total amount paid or payable
- Whether GST/HST is included or added separately
- Your 9-digit GST/HST registration number
- For purchases over $150: The vendor’s business name and their GST/HST number.
Small Supplier Threshold: $30,000
If You Exceed $30,000:
Registration is mandatory. You must collect HST on taxable supplies and are eligible to claim ITCs on all business purchases.
Below $30,000:
Registration is optional. However, registering early allows you to recover HST paid on startup tools, software, and equipment.
Records, Receipts, and Audit-Proof Bookkeeping
Stay compliant with CRA by maintaining a gold-standard documentation system.
What Records to Keep
Income Records
- Client contracts and engagement letters
- Invoices issued (all, not just paid)
- Deposit receipts and retainer agreements
- Payment receipts (cheques, e-transfers, CC)
Expense Records
- Vendor invoices with required HST info
- Purchase orders and delivery confirmations
- Credit card statements and receipts
- Bank statements
Project Records
- Project budgets and cost estimates
- Change order documentation
- Progress billing schedules
- Final project reconciliations
Tax Records
- GST/HST returns filed
- T4A slips issued (contractor payments)
- Payroll records (if employees)
- Vehicle logbooks and home office calculations
How Long to Keep Records
CRA requires businesses to keep records for generally six years from the end of the last tax year to which they relate.
Important: You cannot destroy records early without CRA permission. If you’re audited and records are missing, CRA can reassess with arbitrary figures.
ITC Documentary Requirements
Don’t claim Input Tax Credits without proper documentation. CRA requires invoices that show the vendor’s GST/HST registration number, the tax charged, and enough detail to identify what was purchased.
Project Costing for Interior Design
Moving beyond generic totals to granular project-level profitability.
Why Project-by-Project Tracking Matters
Generic bookkeeping lumps all revenue together and all expenses together. You see a total profit (or loss) for the year—but you have no idea which projects made money and which lost it.
Chart of Accounts Structure for Design Studios
We configure your accounting software with income and expense accounts structured for interior design workflows:
Income Categories
- Design fees (by project)
- Procurement/FF&E revenue
- Pass-through billing
- Consultation fees
Expense Categories
- FF&E purchases (by project)
- Subcontractor/installer costs
- Trade and vendor costs
- Operating expenses (Rent, Software)
- Marketing & Business Dev
Budget vs. Actual by Project
Each project starts with an estimate. Monthly reporting shows actual costs against that estimate—before the project closes, not after.
What you see each month:
- Budgeted design fee vs. billed to date
- Estimated procurement costs vs. actual vendor invoices
- Hours/time invested (if tracking billable time)
- Projected vs. actual profit margin
Deposits and Retainers
Until the work is performed, deposits may be recorded as a liability (unearned revenue), not income. We track the specific timing of revenue recognition and HST liability.
Payroll, Contractors, and Service Fee Reporting
Managing employer obligations and subcontractor reporting for Ontario design firms.
If You Have Employees
Payroll source deductions (CPP, EI, income tax) must be remitted to CRA on schedule. Your remitter type—and therefore your due dates—depends on your Average Monthly Withholding Amount (AMWA) from two years prior.
| Remitter Type | AMWA Threshold | Typical Due Date |
|---|---|---|
| Quarterly | < $3,000 (and perfect compliance history) | 15th of month after quarter |
| Regular | < $25,000 | 15th of following month |
| Accelerated Threshold 1 | $25,000–$99,999 | Up to 4 payments per month |
| Accelerated Threshold 2 | ≥ $100,000 | Up to 4 payments per month |
Contractor Payments (Fees for Services)
If you pay installers, stagers, contractors, or other service providers more than $500 in a calendar year, you generally must report those payments.
T4A slip (“Statement of Pension, Retirement, Annuity, and Other Income”) filed with CRA by the last day of February following the calendar year.
- Contractor name and address
- Total payments during the year
- Whether the contractor provided a GST/HST number
If Your Projects Include Renovations: Holdback Awareness
Navigating Ontario Construction Act requirements for design-build projects.
When interior design projects include construction or renovation scope where you’re acting as contractor or subcontractor, Ontario Construction Act rules may apply.
Each payer shall retain a holdback equal to 10% of the price of the services or materials supplied until the applicable lien period expires.
When this applies:
- You’re party to a construction contract or subcontract
- Lien rights may arise
- The project involves “improvement” to land or premises
When this typically doesn’t apply:
- Pure design services without construction involvement
- Procurement-only arrangements where you’re not a constructor
Our approach: We flag projects where holdback may be relevant and track receivables accordingly. If you’re unsure whether Construction Act rules apply to your work, consult with a construction lawyer.
Software and Process
Modern tools and a disciplined monthly workflow for clean financials.
Software We Use
QuickBooks Online is our primary platform for interior design bookkeeping. It handles:
- Project tracking (via “Projects” feature or class tracking)
- Multi-vendor expense management
- Invoice creation with HST disclosure
- Bank and credit card feeds
- Reporting by project, client, or period
Alternative platforms: We also work with Xero, FreshBooks, and Wave depending on client needs.
Monthly Bookkeeping Process
Transaction import and categorization, receipt matching
Bank and credit card reconciliation
A/R and A/P review, project cost updates
Month-end close, financial statements delivered
What You Get Each Month
Standard Deliverables:
Pricing and Onboarding
Transparent pricing and a structured transition to professional bookkeeping.
How Pricing Works
Interior design bookkeeping pricing depends on:
| Factor | Impact on Price |
|---|---|
| Monthly transaction volume | More transactions = more categorization work |
| Number of active projects | Project tracking adds complexity |
| Vendor and contractor volume | More bills = more A/P work |
| Payroll (if applicable) | Adds remittance tracking and T4 prep |
| HST filing frequency | Monthly, quarterly, or annual |
Onboarding Process
Discovery Call
We review your current situation, project volume, vendor ecosystem, and compliance obligations.
System Setup
We configure QuickBooks with project-based chart of accounts, HST settings, and reporting structure.
Catch-Up (If Needed)
If books are behind, we bring them current before transitioning to monthly service.
Monthly Operations
Ongoing bookkeeping delivered on schedule. You focus on design; we handle the numbers.
Service Areas in Ontario
Local expertise in the Waterloo Region, serving designers across the province.
Our Office Locations
The Acctax Company provides interior design accounting services from four office locations in the Kitchener-Waterloo-Cambridge region:
- Kitchener: 178 Coach Hill Drive
- Cambridge: 15 Lena Crescent
- Cambridge: 657 Franklin Blvd
- Waterloo: 100 Frobisher Drive
Hours: Monday–Friday, 9:00 AM – 5:00 PM
Phone: +1 226-808-0302
Remote Service
Interior designers across Ontario work with us through QuickBooks Online access, secure document exchange, and video consultations. Same service, same reporting, regardless of location.
Interior Design Accounting FAQs
Yes, interior design services supplied in Ontario are generally subject to HST at 13%. The rate depends on place of supply—if your client is in another province, different rules may apply. If you're below the $30,000 small supplier threshold, registration is optional.
Invoices should show your business name, invoice date, total amount, whether HST is included or added, the applicable rate (13% for Ontario), and your GST/HST registration number. For vendor invoices over $150, you need their registration number and sufficient detail to identify the purchase.
CRA requires records to be kept for generally six years from the end of the last tax year to which they relate. This includes client contracts, invoices, vendor bills, bank statements, and tax filings. Early destruction requires CRA permission.
The small supplier threshold is $30,000 in worldwide taxable supplies over the previous four consecutive calendar quarters. Below this threshold, registration is optional. Once you exceed $30,000, you must register and start charging HST.
If you pay any contractor or service provider more than $500 in a calendar year, you generally must report those payments via T4A slip filed with CRA by the last day of February following the calendar year.
Keep a logbook that records the date, destination, purpose, and kilometres for each business trip. At year-end, calculate business vs. personal use percentage. CRA requires contemporaneous records—reconstructed logs after the fact are often challenged.
No. Business-use-of-home expenses cannot create or increase a business loss. You can deduct home office costs only up to the amount of net income from the business. Unused amounts can be carried forward to future years.
No. The 60/40 and 70/30 rules are interior design composition principles (pattern vs. solid, dominant vs. accent colours). This page covers financial recordkeeping, tax compliance, and business accounting—not design theory.
Both are client prepayments, but they may have different accounting and tax treatments. A retainer is typically an advance against future services. A deposit may be partially or fully forfeited if the client cancels. We track both correctly for revenue recognition and HST timing.
Holdback rules apply when you're party to a construction contract or subcontract where lien rights may arise. Pure design services without construction involvement typically don't trigger holdback requirements. If you're involved in renovation or construction coordination, consult with a construction lawyer to confirm applicability.