26 Jun Bookkeeping for Marketing Agencies: From Disaster to Delight
When it comes to bookkeeping for marketing agencies or other creative industries, there are ways to do it productively so you can get back to doing what you do best.
As anyone who works in a creative industry understands, it can be difficult to find time to devote to your actual creative work when you’re bogged down with tasks that might not be as satisfying. And yes, that includes updating your books. After all, we know not everyone gets as excited about bookkeeping as we do!
Today, we’re sharing our best advice for bookkeeping for marketing agencies to get you back on track.
Bookkeeping for marketing agencies
First things first: let’s discuss how important proper bookkeeping is not only for marketing agencies but for any business.
Bookkeeping offers you the necessary visibility to see how numbers are playing a role in your business. Your numbers give you important insight into the success of your business, where you need to cut back, where you could save, and where your money is going.
Speaking of saving money, here are five ways for small businesses to save on operating expenses.
The 4 Bottom Lines
We believe any business should aspire to 4 bottom lines: Profit, Time Freedom, Impact, Satisfaction. If your books aren’t taken care of, how will you achieve any of these goals or get the insight you need to get there?
Now, if the state of your bookkeeping feels like a disaster, there are three likely causes. The information we provide today will help you address each of these factors so your books will be in great shape.
Three things that can make bookkeeping for marketing agencies a disaster
- Your business model
- Bad systems
Your business model
As with any business, a business model that’s up-to-date and comprehensive is vital. One factor that’s bound to suffer from an ineffective business model is your bookkeeping. Without the clear goals and information outlined in a strategic business model, it’s hard to know exactly what the information in your bookkeeping is telling you.
Maybe you spent $10,000 on supplies this past year. Is that in line with your business model? That’s just one way to use the information for more accurate bookkeeping.
Here’s what else your business model and books tell you when you combine them:
- If you’re charging enough
- How your finances move through your business
- Determining your next move: Is it time to hire a new client? Is it time to cut back somewhere?
- How much to pay new hires
- What to spend on ad campaigns
- Is your pricing model correct?
We often meet with well-intentioned marketing agency owners who have tasked their assistant or another employee with their bookkeeping. While this might seem like a good use of company resources, it’s often problematic.
Your employees often aren’t equipped to manage the bookkeeping for marketing agencies. This incompetence can lead to costly mistakes. It can also mean you’re spending more than you need to when you miss out on opportunities to save.
Do you think it might be time to outsource your bookkeeping? Here’s how to tell.
There are serious consequences from bad systems in bookkeeping for marketing agencies or any other business.
Here are some signs your bookkeeping systems could use some work:
- They’re hand-written instead of done on a computer: This, along with manual calculations, leads to a higher likelihood of error.
- They’re inconsistent: There are gaps in reporting or reports aren’t organized
- You’re missing documents, including tax payments and other important paperwork
- You’ve fallen behind on data entry
- Regular audits and checks haven’t been completed
- You’ve tasked an inexperienced person to do your bookkeeping
- You overlook small transactions
- A lack of organization has led to lost or missing items and invoices (here’s how to go from shoebox to success and update your business financial records)
If you just read these three things that can make bookkeeping for marketing agencies a disaster and felt a pit in your stomach, fear not. We can help you make your financial reports read like a story.
A gut feeling just isn’t enough
We know how tempting it can be to operate off of gut feelings rather than concrete data. Unfortunately, that just doesn’t cut it when it comes to successful bookkeeping. You risk sacrificing valuable time and money if your marketing agency has bad systems in place for bookkeeping.
And as we both know, time and money are two of the most valuable assets a company has. Outsourcing your bookkeeping services to Two Roads can help you get more of both. Schedule a complimentary 30-minute call today to find out how we can help your marketing agency and to receive a personalized quote.
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