01Pain point
Mixed Revenue Models Complexity
Services (70% retainer, 30% project), software resale (10% margin), productized packages. Mixed pricing creates chaos in profit calculation.
Paid media archetype
Digital Marketing Agencies Accountants UK
Chartered accountants specialising in digital marketing agencies. We understand your business model, cash flow patterns, and growth trajectory.
ACCA registered practice
6 specialist services
Tailored chart of accounts & reporting
DocPaid media · Digital Marketing Agencies
Specialist · UK-wide
Why a specialist
Most accountants treat every business the same.
Digital Marketing Agencies have unique accounting challenges. Unlike generalist accountants, we understand your business model, your cash flow patterns, and your growth trajectory.
TL;DR
- Monthly management accounts with client profitability analysis
- Tax planning and optimisation for agency-specific structures
- Cash flow forecasting aligned with your revenue patterns
- R&D tax credit assessment for qualifying development work
Common pain points
What we hear from digital marketing agencies on the first call.
The same three or four things, in different shapes. Sound familiar?
02Pain point
Subcontractor Management
You use freelance specialists (copywriters, designers, developers) for capacity. Invoicing them, paying them, staying compliant with IR35. It's administrative burden.
03Pain point
Client Project Profitability Unknown
You manage 20-50 clients with different services, retainers, and project fees. Which clients are actually profitable? You don't know.
What you get
Services tailored to digital marketing agencies.
The retainer covers the day-to-day. Strategic stuff sits on top — flagged in your monthly review, scoped before any work begins.
Multi-Revenue Model P&L
Services revenue, project revenue, software resale all tracked separately. See gross margin by revenue stream. Identify which is most profitable.
Subcontractor & Freelancer Management
Invoicing, payment processing, IR35 status checks, tax compliance. We handle the administrative burden of your freelancer network.
Client Profitability Dashboard
Monthly P&L per client. See service delivery margins, project margins, software resale margins. Reprice unprofitable clients or drop them.
Monthly Cash Flow Forecasting
Project pipeline + retainer contracts = cash forecast. You see cash crunches 4-6 weeks ahead.
Payroll & Tax Planning
Employee and contractor mix creates tax complexity. We optimise salary/dividend splits and ensure compliance.
Bookkeeping & VAT Compliance
High transaction volume (retainers, projects, freelancer payments, software purchases). Automated reconciliation and clean records.
UK coverage
Serving digital marketing agencies nationwide
Remote-first, but with dedicated city pages where the agency density is high enough that local knowledge pays off.
FAQ
Common questions
Most agencies ask the same things on the first call. Here are the short answers — happy to go deeper on any of them.
How do you handle mixed revenue (retainers + projects + resale)?
We track each revenue stream separately in your P&L. Services revenue, project revenue, and software resale all have distinct gross margins. You see which is most profitable.
What are the IR35 rules for using freelancers?
If you control how a freelancer works (their hours, methods, deliverables), they're likely "inside IR35", meaning they should pay PAYE taxes, not the lower contractor rate. We assess each freelancer and ensure compliance.
How do I know which clients are profitable?
We assign all your costs to clients: staff time, freelancer subcontracting, software, travel. Monthly P&L per client shows you profitability. Bottom 20% often lose money. Repricing or dropping them transforms margins.
Should I pay freelancers as employees or contractors?
If they're ongoing, control methods, or work your hours, they should likely be employees (IR35). If truly independent, project-based, and use their own methods, contractor is fine. We review your structure and help you stay compliant.
Resources
Reading and tools for digital marketing agencies.
Free calculators
Agency Profitability Calculator
Analyse multi-revenue stream profitability.
Director Salary Calculator
Plan tax-efficient profit extraction.
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Get a free 15 minute call with an accountant who actually understands digital marketing agencies. No jargon, no surprises. We onboard a limited number of new clients each quarter to keep the work tight.