Inside The Marketer's Guide to Better Bookkeeping
The Marketer's Guide to Better Bookkeeping takes a comprehensive look at what marketing and advertising companies can do to improve their bookkeeping systems. This ebook explores:
- Appropriate softwares for use by small and mid-sized agencies
- Why to track your time, even if you do not bill your clients hourly
- How job and project costing can revolutionize your business from the bottom up
- Real-world examples of agencies that have improved their business using these methods
We get it. You left the world of big-name agencies and Fortune 100 clients with multi-million dollar budgets behind so you can focus on doing what you love: crafting compelling copy, crafting effective campaigns, and delivering ROI to your clients.
In the beginning, you got to focus exactly on doing what you love. But as the business grew, employees came on board, and more clients sought you out, your role shifted from "marketing guru" to "administrator of all things required to make this business work", including bookkeeping and accounting.
If this sounds like a familiar story, this ebook is for you. Written by bookkeeping and accounting expert Sammy Soto, The Marketer's Guide to Better Bookkeeping is an invaluable resource for any agency owner looking to get their financial reporting systems under control without breaking the bank or devoting an enormous amount of time to their accounting setup.
What are you waiting for? Download The Marketer's Guide to Better Bookkeeping for free today and learn how you can turn your marketing or advertising agency around with a few simple, straightforward steps that will help you identify your highest profit margin clients, projects and services.
Imagine being able to only focus on the activities that actually generate profit for your business. You're just one click away from that being a reality!
Excerpts From The Marketer's Guide to Better Bookkeeping
"Many marketers spend as little time as possible on their accounting, receiving only basic financial reports on a quarterly or annual basis from their accountant. While this can be appropriate for very small companies of 1-2 people, it can expose larger enterprises to unnecessary risks by not tracking profit and loss on a per project basis. If you have multiple clients and work on multiple jobs, your accountant should provide you with a monthly breakdown of performance for each and every job you’ve worked on.
The act of tracking profits and losses on a per project basis is called job costing. When using a job costing system, expenses from a specific job are tracked against revenue produced by that job. Job costing is used extensively by creative, manufacturing, construction, and professional services companies.
The number one reason to introduce job costing into your accounting processes is to determine your profit margins and gain greater insight into your business. To implement a job costing system successfully, you must first understand all of the direct costs associated with each project your team works on."
"Setting the right cash collection schedule is extremely important. At Ledger Leaders, I worked with a client who landed a contract to build a website and provide six months of social media advertising. The expected cost of the website was $5,000 and the monthly social media spend was budgeted to be $1,000. The amount of cash that the marketer was to receive for the job was $24,000.
Initially, the client decided to simply divide the price of the job evenly over the length of the contract. However, after plotting out the timing of each expense, we realized that spreading out the payments evenly for this job would put her in a serious cash crunch as she would incur most of the expense for the job in the first month of the contract.
If the revenue was to be received evenly over six months, the job would have yielded a negative cash flow in the first month - meaning that even though she was set to make a profit long term, in the short term she operated at a loss. This is how profitable companies sometimes struggle to make payroll."