Creative agencies aren’t like other businesses. The issues and opportunities you face are often unique to the creative sector. So the traditional approach to financial management, that might work well for widget makers, just doesn’t cut it for businesses like yours.
Backward looking financial reports, profit and loss accounts, balance sheets and cash flow forecasts, don’t drive growth. The major cost for creative businesses is your people, your talent. So it’s only logical to focus and measure your people costs and returns.
The best performers in the sector focus on the future not the past. Their profits grow consistently because they measure and improve the key numbers:
Revenue per head,
Staff costs per head,
Operating profit margin per head,
Staff costs as a percentage of revenue,
The high-fliers benchmark themselves against the best performers in their sector to deliver continued profitable growth.
If you are aiming for growth download your free report: How to smash the 7 major obstacles to growing your creative agency.
“How To Smash The 7 Major Obstacles To Growth”
If you are not getting this forward thinking help and support talk to Ayo and his team at Optima. Creative and digital marketing agencies, just like yours, have been working with us for over 10-years.
All we need is 45 minutes of your time. Ayo will visit you, review your performance and show you the difference specialist accountants for creative agencies can make to your bottom line.
Take the first step in transforming your financial future today.
Optima Business Support, specialist accountants for creative agencies.
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Click on the button below for a free 45-minute business performance review.
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Recent Blog Post
- Accountants For Creatives: 4 Critical Reports Your Financial Management System Must Have
To maximise your creative agency’s profits you need to know your key financial information. You wouldn’t drive a car without a dashboard!
In addition to the usual profit and loss statement, balance sheet and cash flow forecasts, these are the four critical financial reports that can improve your agency’s overall productivity and profitability. Any financial management system which does not provide these as part of its reporting module is not worth investing in.
1) Profit Analysis Report
This report allows you to compare estimated to actual costs, billable and invoiced amounts to give you a clear understanding of how profitable your work is. You should be able to apply filters while creating the report to show specific information such as:
- Client names
- Projects
- Jobs
- Date ranges
- Each job status
2) Staff Utilisation
Here you’ll find a summary view of available staff hours, hours worked and billable hours organised by role and staff. It should display the total available hours for staff in a given date range, their target billable hours (set in staff details page), the total hours worked and the amount of those hours that were billable.
3) Efficiency Report
This report provides information on the efficiency of all of your active staff. Information should include the number of billable and non-billable hours, as well as the values of the billable hours versus the payroll cost of the individual. The number of jobs worked on by the individual should also be included.
4) WIP – Work In Progress
This report displays job level details and financial information such as a breakdown of actual, estimated, variance, invoiced and un-billed values.
These are some of the reports that will help you manage projects at your agency and avoid project overruns. The purpose of using agency management software is to give you a clear understanding of what jobs are profitable, look at your staff utilisation, scheduling, timelines and anything directly related to your day-to-day activities.
Taken together, these reports should highlight how well your creative agency is run.
You would not drive a car blindfolded, so why run your agency without the key information showing where your business is heading?
Boost the bottom line for your agency. Pick up the phone and call 020 7692 0914 and ask for Ayo.
If you have enjoyed this week’s blog, you can read more by clicking the links below:
What Do Your Numbers Say About Your Business
The Key to Business Growth
Making Your Business Attractive To An Investor
