Accountancy challenges within the Marketing and Creative industry and how they can be solved

The creative sector has changed massively over the last 10 years, with small specialist agencies competing with full service and large agency groups. You may be a creative or design agency, in advertising or branding, copywriting or public relations, social media or SEO, influencer or content, full service, specialist, traditional, or digital – but the financial needs and pressures that agencies face, no matter what your specialism, are similar.

How do I keep track of my business’s cashflow?

It is important to stay on top of cash flow, as any business. Make sure to analyse your bills carefully and ensure you chase payments promptly from clients. Take time to review and cut any potential costs where you can. Perhaps also consider selling any office or technical equipment that you may not need to gain some extra income.

To ensure assist with cash collection, you could ask clients to pay by Direct Debit by using Go Cardless.
If you are raising invoices through your accounting software, you can add a ‘pay now’ button to any invoices sent out from the software.

We really love Fathom and Xero’s short terms cashflow insights, and we recommend Chaser to assist with credit control and sending timely reminders to clients for overdue invoices.

What accounting software do I use – there’s too many to choose from?

With the ever-changing world of technology, and new apps appearing constantly, it can be hard to know which will be best for your business and how they can work together. It may be tempting to just stick with a simple Excel spreadsheet, but the correct software can really streamline your business processes and can cut down on time – so you have more time to concentrate on running your business.

With services such as: sales tracking, budget planning, inventory management, financial statements, payroll, and tax management. By learning the software and training your staff on it, you can cut down on the time it takes to run reports. If you want some more support on this topic, do not hesitate to get in contact with us and we can help you to create a personalised app stack, specifically for your business.

Data security and why it’s so important:

Data security is important for all businesses, but especially within marketing. It is your responsibility to protect your client’s data, including social media passwords and invoices etc. Whenever you increase your business’s online exposure, you increase its risk of getting targeted by hackers.

Firstly, think about how vulnerable your business may be, and then consider bringing in a professional that might be able to locate your areas of weakness – you can then create a way to address them.

Ensure that 2 step authentication is enabled for any software you may use to help prevent data breaches.

What about payroll and HR, is there an easier way?

When it comes to payroll and HR, it is important to be very thorough, ensuring you have employment contracts for all employees and completing all the necessary checks such as the ‘right to work’ when taking on new starters.

Employment related taxes need to be filed with HMRC on time and paid on time to avoid penalties and interest.

All employers must ensure there is a workplace pension scheme available to employees.
For employees who are paid on an hourly basis, time sheets can also confirm your employees’ hours, meaning you won’t under pay them or lose money for time that’s not met.

Here at Farnell Clarke, we understand that it can be challenging to navigate the complexities of HR. Our HR consultancy offerings can give you flexible HR support to any business no matter your size, number of employees or complexity – you can find out more on this topic here.

Can I file my own taxes and do my own financial reports?

It can be a challenge to keep up with financial disclosures and stay on top of reporting requirements.
The best way to ensure you’re meeting your reporting requirements is to outsource some of the work, we can help with this.

What else should I look out for?

Check everything! Mistakes happen because the quoted pricing of a project (perhaps paying for ad-hoc jobs etc) is inaccurate. This can affect the expected profit projection during a marketing project’s lifecycle. Minimizing or eliminating accounting challenges for marketing businesses begins with a strategic plan for time and output costing. This can be done by analysing the financial data and capacity of your business in conjunction with a financial expert that understands costing, profitability, and the costs of keeping your business running with the goal of expansion.

What can I do to make keeping track of my finances easier?

Doing your own business’s accounting may seem like an easy and efficient way to save some money, however, if it goes wrong, it will result in a much higher cost. Engaging/Using an accountant will ensure your books are up-to-date and accurate – it’s just one less thing to worry about.

We deliver bespoke outsourced accounting solutions, from accounting software and financial management, through to payroll and HR consultancy, for the creative industries. By working with a trusted outsourced accounting specialist who understands you and your aims and objectives, you can spend more time on the creative side of your business and passion. Safe in the knowledge your financial management is being controlled, with your businesses latest financial data at your fingertips if you need it.

To enquire about accounting services for your marketing or creative business, get in touch here.