10 Signs Your Agency Needs An Accountant

Rayhaan Moughal

04.09.2024

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Running an agency means being creative, innovative, and constantly ahead of the curve when it comes to marketing. However, even the most successful agencies sometimes struggle to keep on top of the financial aspects of their business.

It's okay, you're not alone. Accounting can seem like a foreign language, and it's not the most exciting part of running a business, is it?

But it's vitally important for your agency to succeed. Let's look at 10 signs that you might need an accountant for your marketing agency.

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1. Your Agency Is Growing

When your marketing agency starts to grow, so do the numbers. It's no longer just a side hustle; it's a full-blown business. With every new client and campaign, your revenue increases, but so does the complexity of managing it.

Suddenly, you're dealing with bigger contracts, more invoices, and perhaps even different currencies. This is where an accountant becomes invaluable. They can help keep track of where the money is coming from and where it's going, ensuring that nothing slips through the cracks.

An accountant can set up systems to manage your finances more efficiently. They can help with budgeting, forecasting, and even identifying profitable areas to invest in further. This frees you up to focus on creating outstanding marketing campaigns and driving your agency's growth.

2. You're Losing Track of Your Expenses

When you don't keep an eye on what you're spending, costs can quickly add up, and you might find yourself in financial trouble. Keeping tabs on everything from software subscriptions to client dinners can be overwhelming. This is where an accountant can step in and make a big difference. They can organise your expenses, ensuring each cost is accounted for and accurately recorded.

Having an accountant keep track of your transactions can also help you maximise your tax deductions. Many business owners miss out on potential savings simply because they don't know what they can claim. An accountant can identify these opportunities and make sure you benefit from every allowable deduction. This not only saves you money but also keeps your finances tidy, making it easier to spot any irregularities or areas where you might be overspending.

3. You're Not Sure How to File Taxes

Filing taxes for a company is not as simple as doing your personal taxes. There are accounts to produce, complex tax returns to complete, and specific rules that apply to businesses. It's easy to make mistakes, which can cost your agency money in fines or missed deductions. Having an accountant who knows the ins and outs of business taxes can make this process much smoother. They can ensure that everything is filed correctly and on time, so you don't have to worry about penalties or getting audited by HMRC.

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An accountant can also help you understand what tax taxes you need to pay, when to pay them, and how much you need to set aside. This knowledge can help you plan better and avoid any surprises. Plus, they keep up with changes in tax laws, ensuring that your agency stays compliant.

By having an accountant handle your taxes, you can focus on what you do best—running your marketing agency.

4. You Don't Understand Tax Deductions for Agencies

Tax deductions are like a treasure chest, but you need the right map to find them. Marketing agencies can claim deductions for various things like team costs, advertising expenses, and sometimes external meetings. But knowing exactly what you can and can't deduct is tricky. Most people miss out on these potential savings simply because they don't know what to look for. This is where an accountant brings expertise to uncover every possible deduction that can lower your tax bill.

An accountant will identify these deductions and ensure they are applied correctly. They keep up with tax laws, which can change often and be confusing. This expertise can save your agency money and keep you compliant with regulations. Without proper guidance, you might miss out on deductions or even make mistakes that could lead to penalties. Having an accountant on your side means you can focus on growing your business while they handle the numbers.

5. You're Spending Too Much Time on Accounting Tasks

You probably started your agency because you're passionate about marketing, not crunching numbers. When you spend hours trying to reconcile accounts or sort through receipts, it takes away from the time you could be using to create campaigns, meet with clients, or develop new strategies. This time drain can hurt your efficiency and creativity, ultimately affecting the quality of service you provide to your clients.

Hiring an accountant can free up your schedule. An accountant can handle all the financial details, so you don't have to. By offloading these time-consuming tasks, you can re-invest those hours into growing your business. Whether it's closing more deals, brainstorming the next big campaign, or simply taking a well-deserved break, it’s more appealing than tearing your hair out over numbers!

6. You Worry About Audits

HMRC audits can be a significant source of stress for any business owner. Red flags that might trigger an audit include irregularities in your financial records, large or unusual deductions, or inconsistent income reporting. If your agency gets audited, the process can be time-consuming and nerve-wracking. Proper record-keeping and accurate financial statements are crucial to avoid these red flags.

Accountants can help by ensuring your financial records are accurate and audit-friendly. They know the common pitfalls that can attract auditors and ensure your books are in order. With an accountant handling your finances, you can have peace of mind knowing that, if an audit does occur, everything is well-documented and in compliance with regulations.

7. You're Not Sure How to Plan for the Future

Financial planning is crucial for the future of any business. Without a clear plan, it’s easy to get lost in the day-to-day and miss growth opportunities. An accountant can help you see the bigger picture. They can assist in setting realistic but stretching goals, creating budgets, and forecasting revenue. With their help, you can make informed decisions to ensure your agency is on the right path.

Accountants bring valuable insights into strategic financial planning. They can analyse your current financial status, look at industry trends, and provide investment advice. Professional guidance helps make sound, long-term plans for your agency. Knowing where your money should go and how to use it best makes you more likely to achieve your business goals. Having an accountant on your team means having a partner who is as committed to your agency’s future as you are.

8. You're Considering Expanding Your Agency

The financial landscape can become much more complicated when you consider expanding your agency. New countries, additional staff, and broader services come with their own financial challenges. Managing these complexities without professional help can lead to mistakes that could cost you time and money. An experienced agency accountant can help navigate these challenges by providing a clear financial roadmap. They’ll assist in budgeting for new expenses and ensuring you have the cash flow to support growth.

An accountant can also help you evaluate the financial viability of different expansion strategies. Whether you're considering opening a new office, investing in new technology, or launching a new service line, they can provide detailed financial projections. This helps you make informed decisions and avoid costly missteps.

9. You’ve Experienced Rapid Growth

Rapid growth can be both exciting and overwhelming for your agency. When business takes off quickly, it can lead to financial complications that are hard to manage on your own. You may find yourself dealing with increased expenses, more clients to bill, and a need to hire more staff. Without proper financial management, these new developments can turn into chaos. An accountant can help you keep everything organised and make sure you're on the right track.

An accountant can also assist in setting up systems to manage your finances efficiently as your business grows. They can help you create budgets, track cash flow, and make sure you're meeting all your financial obligations. So, if your business is growing faster than you can handle, it might be time to bring in an accountant to keep things running smoothly.

10. You're Losing Money and Don't Know Why

When your marketing agency is losing money and you can't pinpoint the reason, it's often a sign you need professional help. An accountant can dive into your financial records and uncover the root causes of your losses. They can identify where your spending is excessive or where your revenue streams are failing. This analysis helps you understand your financial weakness and offers a clearer picture of your business health. By working with an agency specialist, you can benchmark your spend against other agencies to uncover the lowest hanging fruit.

Accountants can provide actionable insights to address your financial challenges. They can recommend cost-cutting measures, more efficient ways to manage your budget, and strategies to improve your profit margins. By leveraging their expertise, you can turn around your finances and set your business back on the path to profitability.

Conclusion

There are several signs that indicate your marketing agency could benefit from the expertise of an accountant. From managing growth and keeping track of expenses to understanding tax deductions and planning for the future, an accountant can provide invaluable support. They help ensure your financial health, allowing you to focus on what you do best: creating outstanding marketing campaigns.

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Get In Touch

Whilst it may seem straight forward to complete your tax returns on your own, if you want to make sure you are claiming everything you possibly can then it pays to consult an accountant such as Sidekick.

To find out whether you are maximising your expenses and keeping as much of your profit as you’re entitled to, book a call with us and we’d be happy to guide you - whether you are making the claim yourself, or if you’d like us to do it on your behalf.