To run an agency successfully, you need a detailed overview of its finances. You need to know your most profitable projects, your highest paying clients and a clear picture of your overhead costs. In this guide, we’ll show you how to understand your agency ‘s true profit . Do you know how profitable your last project was, after taking into account all overhead and internal costs? If you’re like many agencies, you wouldn’t have a ready answer. Agencies are often guilty of ignoring their financial reports. It’s easy to see why – you started your agency to do a great job, without getting bogged down in financial details. But while the quality of your work dictates the type of clients you get, your financial health decides how long you can serve them. Creativity may be the heart of your agency, but profit drives it.
Getting Detailed Insight Into Your Finances
Getting detailed insight into your finances — across projects, clients, and the entire agency — is crucial for long-term growth. In this article, I’ll explain how to understand your agency’s finances and how to use advanced reporting to determine your true profit. Get agency and project level insights Agency financial reports are often either too sparse or too Kazakhstan WhatsApp Number List detailed. It can be myopic, too focused on the status of individual projects. Or it can be too remote and simplistic, offering a basic overview of agency revenue without any project-level details. Think of it like the forest and the trees – focus too much on one and you might miss the other. To get a true picture of your agency’s health, you need both: an agency-wide view of expenses and revenue and a detailed view of project and client financials.
Project Level Reports Every Agency Has
Project level reports Every agency has a story about a project that initially promised to be profitable but turned out to be anything but in the end. Hidden expenses, overhead, and internal costs have a way of eating away at your profits before you even know it. Therefore, you need project-level financial reports to get a clear picture of the profitability of your projects. These reports should give you a detailed overview of the financial status of all your projects and clients. You should be able to add revenue, reduce internal costs, and add overhead. You should also be able to access these reports at any time.