Bookkeeping for marketing and creative agencies
An agency's revenue is not the whole story: ad spend passes through, freelancers deliver part of the work and retainers can be billed ahead of the work. Mispar separates pass-through costs from your own revenue, tracks freelancer payments, reconciles retainers and project billing, and prepares monthly books in your own QuickBooks Online or Xero file. Plans start at $229/mo.
Best for: Marketing, advertising, design, PR and web agencies, from solo studios to teams with employees and freelancers.
Tracked by client
Retainers
Separated
Pass-through spend
Documented
Freelancers
Reconciled
Project billing
Where marketing agency books usually go wrong
- Retainers booked as income when received.
- Ad spend paid on behalf of clients mixed with the agency's own costs.
- Freelancers paid without records.
How Mispar keeps your agency books clean
Industry-specific accounts and categorization, with the reporting scope agreed before work starts.
Retainers and project billing
Track recurring retainers and project invoices by client, so you can see who has been billed, who has paid and what is still owed.
Pass-through ad spend
Keep media and ad spend you buy on behalf of clients separate from your own revenue. How gross and net revenue are presented is agreed with your CPA.
Freelancers and subcontractors
Record freelancer payments by person and by client work, with the totals organized for review with your CPA.
Client profitability
When time and costs are tied to clients, the monthly statements show which accounts earn their keep. Time tracking is only included where the records exist.
Software and tools
Break out subscriptions, stock assets and platforms so recurring tool costs are easy to review against revenue.
Payroll and benefits
Reconcile salaries, employer costs and benefits to payroll-provider reports each month.
Reports a marketing agency can use
- Profit by client.
- Pass-through ad spend billed versus paid.
- Freelancer payments year to date.
A simple, predictable process
From kickoff to your first clean close, here is exactly what happens.
Review how you bill
We look at retainers, project billing, ad-spend handling and where invoices are paid.
Set up clients and pass-through accounts
Your file is organized so client revenue and pass-through costs are easy to separate.
Reconcile each month
Payments, card activity, payroll and freelancer bills are reconciled to the bank.
Deliver monthly statements
Monthly statements arrive ready for your CPA with a list of open items.
Illustrative example
An agency buys media for a client on its own card in one month and bills the client the next. Tracking the spend as a pass-through item keeps it from distorting the agency's own revenue and margin. This is an illustration of the method, not a customer case or a guarantee.
Marketing & Creative Agencies bookkeeping — your questions
Do you show ad spend as revenue?
That depends on whether you act as principal or agent for the client. We record it as you and your CPA agree, and keep it separate from your own fees either way.
Can you track profit by client?
When revenue and costs can be tied to clients, yes. We set up classes or tracking and flag where records do not allow it.
How are freelancers handled?
Payments are recorded by person and organized for your CPA. We do not give tax or legal advice on classification.
We bill retainers in advance. Is that income right away?
Treatment depends on your accounting method and contracts. We track what has been billed and what has been delivered, and agree the approach with your CPA.
How do you handle pass-through ad spend?
It is tracked separately from agency income so margin is clear.
Do you work with our invoicing tool?
We work from its exports and reconcile payments to the bank, so the tool stays your invoicing system.
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Our in-house collections team calls and emails customers who owe your company money, so you can stay focused on the work.