DIGITAL MARKETING AGENCY ACCOUNTING
DIGITAL MARKETING AGENCY ACCOUNTING
Since the turn of the century, companies have been changing the way they advertise to consumers. Everything’s gone digital! This is great news for your digital marketing agency. But with these types of changes, come new expenses and new revenue streams. This makes accounting for your marketing agency much different than it was 10 years ago. Nonetheless, maintaining accurate accounting is a must if you want your business to be profitable and grow in today’s market.
Do you need help with setting up and maintaining your accounting records? We can help.
Bookkeeping gives you the opportunity to review your company’s results for the previous month. Our bookkeeping professionals will set up your chart of accounts using digital marketing standard account names. By doing this, you will be able to understand your financial statements with the terminology you are familiar with.
Filing taxes is a requirement. Our team will file your tax return based on your books and records and any additional information you provide. Our tax professionals decipher between all of your expenses and determine what is tax deductible or not. We, then, combine all of your information and prepare all necessary forms and schedules.
Our CFO services are designed to help digital marketing agencies prepare for the future with forecasts and predictions. Our part-time CFOs, take the data from your books, employ financial analysis, to project your future sales. Part-time CFO services also include budgets and overall financial guidance.
Why Use Digital Marketing Agency Accounting?
When you own a digital marketing agency, you encounter a large number of transactions. Including expenses paid on behalf of your clients and your own expenses. It’s important to correctly reflect this activity in order to properly manage them.
Incorporating digital marketing agency accounting will help you manage your business’ finances. Having your agency’s financial data at your fingertips makes it easy for you to make quick decisions. In addition, you’re able to track results and progress over time to ultimately make the decisions that are right for your business.
Digital marketing agency accounting also helps you know the cash and resources you have on hand, the vendors and amounts you owe and the clients that owe you.
Benefits of Digital Marketing Agency Accounting
Growing your digital marketing agency starts with its accounting. And it’s your accounting that shows you what areas you need to focus on. Specifically, digital marketing agency accounting helps you to:
- Keep track of all tax-deductible expenses
- Organize your finances
- Allocate resources where needed
- Stay compliant with state and federal regulation
WHY LYFE ACCOUNTING FOR DIGITAL MARKETING AGENCY ACCOUNTING?
We have direct experience in managing accounting for digital marketing agencies. You would be assigned a designated, in-house accountant with specific experience in digital marketing agency accounting. Our accountants are knowledgeable and professional, and you can feel confident that your books are in the right hands.
Accounting is handled differently across industries. Our service to you is specifically designed for digital marketing agencies. We set up your books, reports, and tax returns that align with the digital marketing industry.
Our team comprises of Certified Public Accountants. We have the knowledge, experience, and credentials to support the services we provide. We are experts and have combined experience over 35 years in accounting and finance.
Key Considerations for Digital Marketing Agency Accounting
Digital marketing agency accounting has a lot of moving parts. For every step of a real estate transaction (from buying a property, renovating, renting, or selling it), you need to keep proper records. Here are 3 key considerations when setting your real estate accounting:
- Key Performance Indicators (KPIs). KPIs are the specific metrics you need to consider when analyzing your agency’s performance. You and your CFO should work together to define what your KPIs should be. A KPI you’re tracking for your own clients but probably not yourself is the cost per lead. The lower the CPL, the better. The only way to lower it is to know what it is in the first place.
- Chart of accounts. A chart of accounts is a comprehensive list of accounts you need to record your transactions. Your chart of accounts is needed to create reports, which show your financial results. Your chart of accounts needs to be set up that all of your transactions can be reflected. So this means having accounts for client expenses, advertising, rent, commissions, etc.
- Budgeting. Digital marketing agencies typically have a large volume of transactions. Ranging from marketing, rent, and supplies to payroll, benefits and client expenses. In order to stay afloat, you need to manage your expenses and track your results. One way to do that is through budgeting.
OUR METHODS TO DIGITAL MARKETING AGENCY ACCOUNTING
We take the time to catch up your books to the present month.
We set up your chart of accounts so that reviewing your financial statements is easy and tax return filing is a breeze.
We gather data. Whether you use Paypal or a credit card processor, we incorporate that information into your books. We will also connect your financial accounts to your bookkeeping software and begin data entry.
To ensure accuracy on your financial statements and ultimately your tax return, we reconcile your accounts.
We prepare your financial statements. The financial statements include income statements and balance sheets.
We help you use your reports and KPIs to make informed, profitable decisions.
Digital Marketing Agency Accounting
Digital marketing agency accounting is not an expense. Think of it as an investment for your digital marketing agency. In order to grow your company, you need to have methods of measuring your success. And that is what digital marketing agency accounting is for.
In a lot of instances, investing in digital marketing agency accounting can save you money. It could be in the form of tax deductions you are not taking advantage of or realizing expenses that are no longer useful to you.
Ready to get started? Schedule a meeting below.
– C. James