As a digital marketing agency, ensuring your finances are accurately controlled and documented is important. And just like other businesses, maintaining proper bookkeeping remains critical to getting those financials from operations on a progressive track.
Have a chance to look into this list of bookkeeping must-haves that digital marketing agencies should know more about.
The process of bookkeeping involves keeping track of financial transactions that businesses encounter during their operations. It includes documenting each transaction using various documents like invoices, receipts and so on. Bookkeeping functions may include:
- Preparing journal entries for all financial transactions
- Preparing necessary financial reports and statements
- Performing bank reconciliations
- Preparing financial reports
- Monitoring receipts and disbursements
- Payroll accounting
- Tax requirements
- Other related activities
Relevance of Bookkeeping for Digital Marketing Agencies
There are endless reasons why bookkeeping is useful even with businesses that offer digital services. Since digital marketing agencies are known for extraordinary business events and transactions, there must be more rigorous processes in handling their income, expenses, and cash flow.
For these digital marketing agencies to make important business decisions, a reliable record-keeping of every financial transaction should be established. They could gain even more strengths through the help of retained bookkeeping services, such as:
- Gaining more awareness and understanding of the agency’s financial state and performance.
- Helping out in the verification of the correctness, timeliness and rationality of the financial figures periodically.
- Saving a lot more resources (effort, time and money) to maximize.
- Obtaining financial transparency primarily for decision-making purposes.
List of Bookkeeping Must-Haves for your Digital Marketing Agency
As we read on, we’re about to walk you through a list of viable ways to maintain an efficient bookkeeping process for your digital marketing agency:
- Separate personal and business financial affairs
Do not commit the same errors other businesses tend to make, which is combining their business’ money with their personal, with or without having any intent to do so. This leads to a greater conflict and confusion in tracking the relevant financial matters made by your digital marketing operations alone.
Without any doubt, having your personal and business finances well separated is a must. It should be done systematically. Doing so creates a good track of financial transactions that directly occurred from your business.
- Review and update set of books
Other than proper separation of your finances, it would be best to have your books well-organized and up to date. Monitoring your books periodically helps in the future reconciliation and verification phase of every recorded transaction.
Also, consistency in reviewing your books equates to regularly tracing all your cash inflows and outflows in a timely manner. This creates an internal control to avoid any mistakes that could materially impact financial records in the long run.
- Automate financial control
If you can, invest in various software and application platforms for a more digitized system approach. Automated controls are typically even more reliable and effective.
Integrating an automated workflow arrangement for core bookkeeping processes strengthens and simplifies your financial management. You can achieve this kind of opportunity through automation and complete financial control like:
- Proper cash flow management through an accurate record-keeping of your income and expenses.
- Separation of personal and business finances
- Send and receive payments through a made-easy E-invoicing.
- Review your financial state and performances through Beppo’s financial reports.
- Generating automated computation for your taxes.
- Outsourced Bookkeeping Provider
Accomplish proper separation of finances, an up-to-date set of books, and automated core financial processes through an outsourced bookkeeping service provider. You can bring off all these bookkeeping must-haves by selecting a suitable outsourced team for your needs.
By delegating your accounting functions, you can cut down on operating expenses, expand as your company grows, and avoid the hassles of handling expenditures. This way, you can allocate more time to concentrate on your core operations.
THRIVE Global CFO as an Accounting and Bookkeeping Service Provider for Digital Marketing Agencies
Here, at THRIVE Global CFO, we assure to provide the utmost accounting and bookkeeping service for your digital marketing agency. Know more about the services we offer by booking a free strategy call so we can talk about more of your business needs. We’re very much excited to have you on our team and be able to eventually thrive with us!