Accounting for Creatives

The life of a creative business owner is a tough balancing act, whether you’re running a fast-moving digital creative business, or a traditional agency, you need to make time to focus on growing your business year on year, with the right people and tools to support you.

One of the key ingredients for growing your business is setting targets and being able to then monitor your performance against the targets. For this you will need to know the important numbers that you need to track.

Don’t fall into the trap of getting consumed in the day-to-day running of your business, firefighting and loosing sight of the effects that today’s decisions will have on the survival and future of your business.

Tools for the Creatives

The key is taking away as much of the finance side of the business off your plate so you can focus on doing what you do best, which is running the business. What you need are the right set off tools to support your decision making and being able to meet all your company reporting requirements with no stress at all.

Here are some of the tools that can help with building the business you dreamt off.

Core Accounting

Statutory accounts preparation, corporation and self-assessment tax returns, quarterly VAT returns, payroll & auto-enrolment and bookkeeping services. Having these up to date including being on top of when and how much tax payments are likely to be.

Management Accounts

Regular reporting and reviews on your businesses key performance indicators (KPIs) will allow you to know where you are and have targets to aim for.

Business Growth Advice

The support with developing your business plan and reviewing progress regularly, including expert financial advice can prove invaluable for you as a business owners.

Cash Flow Forecast

Having an accurate cash forecast will allow you to anticipate potential cash gaps and avoid missed payments. This foresight can highlight corrective action like fine tuning payment and collection strategies. So, more control and less stress.

Key Performance Indicators (KPIs)

KPIs are a set of quantifiable measurements used to gauge your business overall long-term performance. They can be monitored against your own goals or compared to those of other businesses within your sector.

Below are some useful KPIs.

Profit Margins

Are you generating a profit? Even better what does profit per client/product look like? This will trigger some focused decisions.

Efficiency

In the creative world, efficiency is key. Are your staff not performing to their optimum and if not why not?

Operating Profit per head

If your profit per head is down (but revenue up) it indicates over-spending. Controlling your wage bill and other agency costs is key to a better bottom line.

Key takeaways

If your dream is to build a bigger and more profitable business then you must consider having the below as part and parcel of running your business.

Real time accounting

You need a system that lets you see your business performance as it happens so as an example you can be looking at last months data this month and making key decisions, compared to looking at them 9months to a year after.

Growth advice

The guiding support of someone that can hold you accountable and be there as you crush your goals is vital. This can be a business or industry coach but don’t underestimate the benefit of having the right accountant with business advisory experience to support you on your upward business journey.

Embrace technology

At the heart of a lot of the points touched on in this article is the evolving world of tech and how you must embrace them to be able to simplify your business processes so you can focus on building your business.

Get in touch to find out how we can help take your business forward.

By Chidi

Virtual Focus Accountants

Digital Accountants our clients trust