Performance 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 Performance Marketing Agencies
Unique challenges that most generalist accountants simply don't understand:
Ad Spend vs Revenue Confusion
15-20% of PPC agencies can't clearly answer "What's our actual profit?" Managing £50k-£500k monthly ad spend while tracking true agency margins—most accountants miss the complexity of media passthrough accounting.
Surprise Tax Bills & VAT Traps
Variable client onboarding = unpredictable revenue. Without quarterly tax planning, you face £5k-£15k surprise bills or miss VAT thresholds. Pro-active forecasting prevents both.
Hidden Unprofitability
You see client margins but not your own. The average PPC agency loses 15-20% of clients annually without knowing. Monthly client profitability analysis reveals which clients drain cash.
Tailored for Performance Marketing Agencies
Services designed specifically for your business model:
Ad Spend Accounting & Reconciliation
Stop guessing. We separate media passthrough from revenue, reconcile platform APIs (Google, Meta, TikTok), and show your true agency margin monthly. Clarity on what's profit vs. what's client spend.
Quarterly Tax Planning & Forecasting
Monthly profit forecasts + quarterly tax planning = no surprises. We flag VAT thresholds, Corporation Tax liabilities, and payroll planning 3 months ahead. Cash planning becomes predictable.
Client Profitability Analysis
Monthly P&L per client shows which are profitable vs. loss-makers. Adjust pricing, drop clients, or negotiate better terms before margins erode. Data-driven decisions, not guesswork.
VAT Compliance & Reclaim
Navigate reverse charges on media spend, recover input VAT you're missing, and stay compliant. The average PPC agency leaves £3k-£8k annually unclaimed in VAT recoveries.
Bookkeeping & Bank Reconciliation
Weekly or monthly reconciliation of high-volume transactions (PPC platforms, client payments, retainers). We automate bank feeds and platform syncing—no more manual spreadsheets.
R&D Tax Credit Assessment
Custom bidding algorithms, automation scripts, or proprietary reporting tools? Claim back 10-20% of qualifying development spend as R&D tax credits. Average unclaimed: £5k-£50k annually.
Why choose Alto?
- Know your true agency profit margin — Not just client margins
- Recover £3k-£15k annually in missed VAT & tax credits — Identify and claim unclaimed tax relief
- Monthly client profitability P&L — Identifies unprofitable clients
- Automated ad spend reconciliation — No more manual tracking
- Quarterly tax forecasting — Eliminates surprise bills
Serving Performance Marketing Agencies Nationwide
We're remote-first, but have deep expertise in these key locations:
Common Questions
How do you track ad spend differently from other accountants?
Most accountants treat ad spend as a simple expense. We understand media spend is client-facing—not your revenue. We separate it from your fees in the P&L, reconcile against Google Ads, Meta, and TikTok APIs, and calculate your true agency margin. Result: clarity on profitability that other accountants miss.
Do we charge VAT on ad spend passed through to clients?
If you're an agent on the client's behalf, typically no VAT on media spend. If you're reselling media as your own service, VAT applies. We review your contract structure and ensure you're compliant—and identifying if you're missing VAT reclaims on reverse charges.
Can we claim R&D tax credits as a PPC agency?
Yes. Proprietary bidding strategies, automation scripts, or custom reporting tools all qualify. We assess your tech spend and typically uncover £5k-£50k in unclaimed annual R&D credits. Easy money you're leaving on the table.
What's the best business structure for growth?
Sole traders work <£100k profit. Limited Companies unlock Corporation Tax savings at £100k-£1M revenue. We model both, show you the tax bill difference (often £5k-£20k+ annually), and help you time the switch.
Learn More
Explore related resources and guides for performance marketing agencies: