Your marketing firm likely spends considerable hours managing clients and employees and navigating administrative challenges that may eat away at your agency's profit margin. It is possible for this to divert attention away from marketing business bookkeeping and marketing business tax planning.
You may not be asking important questions like how profitable is your market agency until the bills are due. Or you may procrastinate on market business tax planning until deadlines are right on top of you. Fortunately, Quickbooks may be your solution. QuickBooks is an outstanding tool that may help improve some essential marketing business bookkeeping and tax planning tasks that may be essential to your bottom line and future growth.
Using QuickBooks to Tie Expenses to Specific Clients
It is common for marketing firms to have various credit card expenses submitted by their staff. These might include meals with clients, travel, office supplies, or purchasing stock photos online. Credit card expenses that are not linked to a specific client can be troublesome.
QuickBooks allows you to enter billable expenses and then associate them to a client. When using the Plus or Advanced versions of QuickBooks, follow these steps:
1. Select the gear icon and then "Accounts and Settings."
2. In the "Expense" section, select "Bills and Expenses."
3. Check the box for "Make Expenses and Items Billable."
4. If you have a markup rate, enter it. If not, leave it blank.
5. Click "Save" and then click "Done."
Now, when your staff creates an expense, they will see a “Billable” column on the page. They can click the field and tag the customer’s name in the “Customer” field. The transaction will be displayed as a billable expense charge linked to the customer’s profile.
Using QuickBooks to Create Invoices for Your Marketing Firm
If you are like most people, you may not think creating invoices is fun, but it is necessary for your marketing firm to stay in business. QuickBooks can help your marketing business CPA create an invoicing schedule both you and your clients understand.
1. To create an invoice, go to your dashboard and select “Invoices.”
2. Find the customer you are invoicing. If their details are not entered in QuickBooks yet, you can add them.
3. Select the payment terms. For example, if you select net 30, your clients will pay the invoice 30 days after it is received.
4. Enter the product or service you sold.
5. Email the invoice.
You can customize your invoice by adding your logo, changing the invoice template, and using QuickBooks to set up online payments. When you set up online payments, your clients will get a pay now button in the email, allowing them to pay using the payment options you have pre-approved.
At Fusion CPA, we can help you understand the invoicing features on QuickBooks and help you look at your financial reports to determine if adjusting your payment terms from net 60, for example, to net 30 may help improve your agency's cash flow.
Using QuickBooks to Simplify Your Tax Planning
QuickBooks may help your marketing firm with marketing business tax planning by automatically calculating payroll taxes and calculating state taxes if you have a tax nexus in multiple states.
QuickBooks makes it easier for your marketing team to keep track of expenses by allowing you to save receipts with a photo. The plan quarterly tax feature may also help avoid year-end surprises and lets you know how much your marketing firm should set aside each quarter.
Get Sound Guidance from Marketing Business Financial Advisers
Fusion CPA offers marketing business CFO advisory services to small to medium marketing firms like yours. Our marketing business CPAs are experts in using QuickBooks Online and can teach your staff how to make the most of this powerful tool.
Fusion CPA has years of accounting, bookkeeping, and tax planning experience across multiple field service areas. We offer our services to help your company take advantage of tax deductions, avoid tax penalties, organize your bookkeeping, and help you plan for the future.
Does your marketing firm need help with strategic financial planning, cash flow management, certified audits, or internal controls? Would you like an unbiased assessment of your current financial situation and tips that can lead to future growth? If so, our team is here to help you. You can learn more about our services by clicking the button below to schedule a complimentary discovery call today!
This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.