Accounting for Marketing Agencies

Xero: Accounting for Marketing Agencies

The words "digital nomad" may seem like something from a science-fiction novel to some, but for marketing agencies not so much. Many small businesses do not even have a brick-and-mortar office as all the employees work remotely.

Simplify accounting for marketing agencies

Of course, people run their business while traveling to locations closer to home when going on short trips. Whether going near or far, the responsibilities of running a business remain. And these responsibilities include proper accounting practices. Purchasing reliable accounting software could decrease the chances of financial troubles.

Poorly maintained accounting figures could undermine any attempts to deal with a tax agency's audits. Organized books can present proof of compliance and accuracy in reporting.

You Need a Cloud-Based Solution

Executives and others involved with a marketing firm may need to travel to specific locations to address client needs. For a small or mid-sized firm, leaving limited staff at the "home base" doesn't necessarily cause problems. Using the right software for the job assist managers with running things. Accounting for marketing agencies is no exception.

Bills require timely payments, and so do employees and independent contractors. Making payments is not enough, though. Detailed accounting for marketing agencies includes precise information about payables and receivables. These need to be updated for everyone in real-time. Otherwise, problems could arise.

Choosing the Right Software

When purchasing business-related software, owners, executives, and others must look at features, performance capabilities, price, and quality.

With accounting software, the would-be buyer may consider features such as comprehensiveness, user-friendliness, layout, and cloud access. Reading other customer's opinions may be helpful, but some reviews must come with a proverbial grain of salt. A compilation of over 1000 reviews on a computer or software site, however, could carry more weight. The review would probably come with more details about performance, features, pros and cons, and more.

That said, price should factor into the decision-making equation. There's no reason to overpay for software. Seeking an effective program that comes with a reasonable price seems wise.

Features that Impress

Are there any particular features that could make a program stand out?

One feature that might greatly appeal to small business owners is real-time cash flow reports that software like Xero offers. Waiting until withdrawals and deposits show up in a bank account might not provide up-to-the-minute statuses about finances. An accounting program capable of delivering such real-time updates presents helpful benefits to a small business owner.

The ability to reconcile accounts helps, too. Going from one account to the next and attempting to figure out the big financial picture may prove cumbersome. Also, managers could make mistakes when trying to reconcile all the information on an archaic spreadsheet. A program providing automatic reconciling capabilities would be valuable.

A subscription sliding scale could appeal to small business owners and entrepreneurs dealing with a tight budget. A newly established business might not handle a large volume of financial transactions. As the company grows, however, financial and accounting responsibilities increase. A software provider that offers different subscription options, ones appropriate for a particular business' size and scope, may be preferable. Owners could upgrade to expanded programs when the business grows.

Software Has Limitations

No software program could replace the work of an experienced certified public accountant. The team at Fusion CPA employs accountants that represent a variety of marketing companies. Business owners may wish to have the help of a team experienced in Xero accounting software when integrating this solution.

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.