Digital Marketing Agencies have unique accounting challenges. Unlike generalist accountants, we understand your business model, your cash flow patterns, and your growth trajectory. We work with agencies across the entire United Kingdom, from London to Edinburgh. Our team is fully remote and works with clients nationwide.
Accounting Challenges for Digital Marketing Agencies
Unique challenges that most generalist accountants simply don't understand:
Mixed Revenue Models Complexity
Services (70% retainer, 30% project), software resale (10% margin), productized packages—mixed pricing creates chaos in profit calculation.
Subcontractor Management
You use freelance specialists (copywriters, designers, developers) for capacity. Invoicing them, paying them, staying compliant with IR35—it's administrative burden.
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.
Tailored for Digital Marketing Agencies
Services designed specifically for your business model:
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 optimize salary/dividend splits and ensure compliance.
Bookkeeping & VAT Compliance
High transaction volume (retainers, projects, freelancer payments, software purchases). Automated reconciliation and clean records.
Why choose Alto?
- See profit by revenue stream — Services vs projects vs resale
- Eliminate administrative burden — Of freelancer management
- Know which clients are profitable — Each month
- Forecast cash based on pipeline — And retainers
- Tax-optimized payroll and contractor strategy — Minimize tax liability
Serving Digital Marketing Agencies Nationwide
We're remote-first, but have deep expertise in these key locations:
Common Questions
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.
Learn More
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