I used to do a lot of this sort of thing using 3D Studio Max. It has some really nice functionality that allows you to insert the photo of the room and then set up your rendering camera to match the camera used to take the photo. Then you simply maneuver your model around until you have it placed where you want it, in relation to the photo, and hit render. Of course, you have to set up your materials, and make sure the lighting matches the light sources in the photo and you have to place shadow catchers around the model to capture shadows, etc., but after you get everything set up, you hit render and you will get a complete image of the room and the furniture model without having to do any post work in Photoshop. Or you can render the model without the background image and composite in Photoshop. It's up to you. The downside to 3D Studio Max is that it's very expensive and it has a steep learning curve. So it may not be the best option for your situation.
These days, I think most 3D programs have the same sort of functionality though, so like Steven-g said, it would be best to talk to your boss about what he expects. Some bosses want very simple, quick and dirty, conceptual style renders while others might want complete realism. It all depends on how fast it needs to be done and how much money is in the budget. In my experience, the boss always wants it done fast, cheap and great which is a complete impossibility, as the graphic below illustrates.