Specialist Agency Accountant vs General Accountant

Agencies don’t operate like most businesses. Revenue comes in multiple forms — monthly retainers, one-off project fees, and media passthrough (where you collect ad spend from clients and pass it through to platforms like Google or Meta). Each has different implications for cash flow, VAT treatment, and profit recognition.

A general accountant may treat all incoming funds as revenue, inflating your turnover and potentially your tax liability. A specialist agency accountant understands the distinction between revenue you’ve earned and money you’re holding temporarily on behalf of clients.

Most agency owners are also directors of their limited company. The way you extract profits — salary, dividends, pension contributions, or a combination — has a significant impact on how much tax you pay.

A general accountant will typically advise on the standard salary-plus-dividends approach. A specialist goes further: they understand the seasonal nature of agency cash flow, can advise on timing dividend declarations around project completions, and help structure director remuneration to reflect the reality of running a services business.

Agency accounting involves nuances that general practices rarely encounter. Contractor and freelancer management (including IR35 considerations), scope creep affecting project margins, the impact of client payment terms on cash flow, and the challenge of scaling a team when revenue is project-based rather than guaranteed.

A specialist agency accountant has seen these patterns before. They can advise on structuring contractor agreements to manage IR35 risk, help you understand your true cost per head (including bench time), and flag when your debtor days are creeping up before it becomes a cash flow problem.

The traditional accountant relationship is reactive: you send your records, they file your returns, you hear from them once a year. For an agency navigating growth, hiring decisions, and fluctuating cash flow, that’s not enough.

A proactive agency accountant provides regular management information, flags issues before they become problems, and helps you make informed decisions about hiring, pricing, and investment. They’re a finance partner, not just a compliance function.

Cloud accounting software like Xero has transformed how agencies manage their finances. But the software is only as good as the setup behind it. Chart of accounts, tracking categories, bank rules, and integrations all need to be configured for how an agency actually operates.

A general accountant may use Xero but configure it generically. A specialist sets it up to give you the reporting you actually need: revenue by client, profitability by project, and a clear picture of your cash position at any time. They’ll also integrate it with your project management and invoicing tools where possible.