Every successful agency has one thing in common: they have a clear and accurate view of their finances. Equipped with this data, they know what’s working, what isn’t, and what steps to take next.
It’s not just about keeping on top of the numbers though. Here, we’ve put together the best accounting and tax advice for digital agencies.
Don’t miss tax and filing deadlines
Let’s start with the basics – agency owners are busy – like all business owners, and key filing dates with Co. House and HMRC are easily missed or pushed back to ‘a job for tomorrow’.
Missing these deadlines can be costly, in terms of fines and interest payable, and can also give you a bad reputation as a business. Clients and suppliers running credit checks may wonder why accounts are overdue – think about it this way: would you want to do business with someone that is known for not paying on time? It’s important to file your return with as much time as possible before deadlines, as time and care should be taken to avoid mistakes and take the best possible actions.
Keep on top of invoices
Of course, ensuring that your invoices are paid will help your agency to be in the best financial position. But, invoices sent to your agency are just as important. Is there unnecessary expenditure? Could you cut costs somewhere in the business? If free-lancers and other small suppliers have to continually chase for their invoices to be paid, how likely are they to want to work with you in the future? Keeping everyone happy (clients AND suppliers) will go a long way towards success.
Documenting payments both in and out of your digital agency can now be done online too, making the whole process simpler. With tools suitable for small businesses, (Xero + Hubdoc), you’ll know exactly what’s coming in and out of your agency.
Take advantage of online accounting software
As a digital agency, it’s likely that you’ll be aware of the benefits of technology. So why not reap the rewards of online account and cloud-based software? Speedier processes, safer information, anytime access and real-time views – online accounting tools make financial responsibilities even easier.
You don’t have to be an expert either, as most of the tools currently available are user-friendly. This will allow you to spend less time worrying about the numbers and more time managing your business.
Seek professional advice
Accounting can be daunting – especially when there’s a deadline around the corner. So, whether you’d prefer an expert to take care of it and ensure compliance or simply don’t understand what you need to do, seek advice.
At Nabarro Poole, we work with a range of digital and creative agencies including Project Simply, Flow Creative, Making You Content, Jolie Sudio and Six & Flow. We help them with all aspects of their finances and will share some case studies in the new year. Your agency could be next.