Episode Eight | Understanding Cash Availability: Building a Financially Stable Interior Design Business

Hosted by Ruth Ann Janson and Beth Bender

Welcome back to another episode of Top Branch! This week, we're tackling one of the most pressing, and stressful, questions designers face:
“How much of the cash in my account is actually mine?”
Let’s get into it.

The Illusion of a Full Bank Account

Ruth Ann Janson:
Hi, everyone! I’m Ruth Ann Janson, and I’m here with Beth Bender—though we’re recording from separate locations today, so bear with us as we get into our groove.
Today’s episode might just be the second most asked question we get—but in terms of stress? It’s probably number one. We’re talking about: How much cash is actually mine? Designers often see big balances in their bank accounts and think things are going great—but there are hidden liabilities they might be forgetting.

Beth Bender:
Absolutely. It might not be the most asked question, but it’s definitely the biggest concern for most designers. That stress of seeing all that money and wondering what’s actually safe to spend? It’s real.

Ruth Ann Janson:
Because this is such a sensitive topic, we won’t share any client stories—even anonymously. Instead, Beth and I thought it’d be best to walk through a fictitious case study that’s made up of real elements we’ve both seen time and time again.

A Fictional Example Rooted in Reality

Beth Bender:
This is definitely a fictitious example, but it's composed of real situations we've experienced with clients—and that I saw personally during my time in the design industry.

Here’s what can happen: You’ve got good clients who pay 100% upfront. That’s ideal. But then you’ve got other clients who are slow to pay. You trust them, so maybe you place an order for a $10,000 item before the money is actually in your account—because you’re looking at your bank balance and thinking, “I’ve got plenty of cash.”

But as time goes on, that starts to snowball. Not only are you fronting costs, but you’re also collecting sales tax—so now you owe a sizable sales tax bill. At the same time, maybe you’re taking your monthly draw, or you’ve decided to spend a little extra on something like a trip to High Point. You tell yourself, “It’s okay—the money is coming.” But it’s not here yet.

Eventually, big bills come in, invoicing hasn’t been timely, and cash flow gets tight. You start to lose your profit margin and ability to fund operations—and that can put your business in real jeopardy.

Ruth Ann Janson:
And climbing out of that hole? It’s hard. It takes time and discipline. So, let’s talk about how to avoid this situation entirely.

Golden Rule: Always Get 100% Upfront

Ruth Ann Janson:
First things first—get 100% of the money upfront before purchasing anything. I know it seems obvious, but designers still make exceptions. You might trust a client, but even delaying one payment can spiral quickly if you’re juggling multiple projects.

Beth Bender:
Exactly. Make it a firm rule: no money, no product. Not even for something small like an area rug. It’s the number one safeguard to protect your cash.

What Does “Cash Availability” Actually Mean?

Ruth Ann Janson:
Now let’s break down what “cash availability” really is. It sounds technical, but it’s essential to understand. Think of it as your actual spendable cash once you remove all the money that’s already spoken for.

Here’s how you calculate it:

  1. Start with total cash and cash equivalents
    This includes your checking and savings accounts—anywhere you’ve received funds.

  2. Subtract all short-term liabilities, such as:

    • Credit card balances

    • Sales tax you owe

    • Short-term loans

    • Retainers (Yes, these are liabilities until earned—more on this in the next episode!)

  3. Don’t forget client payments for undelivered products
    This is a big one. If a client has paid you for a product you haven’t ordered yet, that money appears in your account—but it’s not yours to spend. It’s not on your credit card or vendor payables list yet, but you do owe it.

Beth Bender:
Right, and that’s the tricky part—because it’s “off-book.” You need a strong project management system to keep an eye on those client-paid-but-not-ordered items.

Tools for Tracking Cash Availability

Beth Bender:
If you’re just starting out, this can be really confusing—especially when vendors say they won’t charge your card until a product ships, which could be months later. That throws off your timing and your ability to gauge your available cash.

Ruth Ann Janson:
You can use something as simple as an Excel spreadsheet to track these liabilities in the early days…

Beth Bender:
Yes, it's very basic, but it works for one or two projects. The problem is it’s not live and easy to update—it doesn’t show what’s happening in your actual accounts.

Ruth Ann Janson:
Exactly. When your business grows and you have multiple projects running at once, that’s when you need a more robust solution.

Beth Bender:
There are some great tools out there:

  • IDnest (which we’ve built!) has a built-in cash availability analysis tool.

  • Studio Designer also has strong cash management features.
    There are others too, but the point is this: once you're juggling multiple projects, you need a system that tracks all this in real time.

Make Reviewing a Weekly Habit

Ruth Ann Janson:
Even the best systems won’t help if you’re not looking at them regularly. We recommend sitting down weekly to review your bank balance, your upcoming payments, and any liabilities. Look at it all in context. Especially before you take an owner draw—make sure the money is truly available.

Beth Bender:
Yes, and when you're doing this weekly, it becomes second nature. You're no longer guessing or stressing—you’re making informed decisions.

Stay Tuned: Retainers Are Next

Ruth Ann Janson:
Well, I think we covered everything we set out to cover today—except for retainers.

Beth Bender:
Yes! Retainers are a huge topic, and we’re going to cover them in our next episode.

Ruth Ann Janson:
We’ll drip out that exciting teaser. But seriously—retainerships are where a lot of people get into trouble, so stay tuned.

Final Thought: A Quote to Remember

We love ending our episodes with a quote. Today’s comes from Dallas favorite, Mark Cuban:

“Watch your cash flow like the air you breathe, because without it, your business won’t survive.”

Beth Bender:
So true.

Ruth Ann Janson:
Thanks for listening! See y’all next time.

Beth Bender:
See you next time!

Susan Nichol