Industry guide
Agency bookkeeping
Agency books need clear revenue timing, project or client profitability, contractor costs, retainers, reimbursements, receivables, and cash visibility.
Reviewed by the Booksmrt bookkeeping teamLast reviewed 2026-07-27
What the monthly close has to prove
- Match invoices and collections to customers.
- Separate retainers, deposits, earned fees, and reimbursable costs.
- Track contractor and direct project costs consistently.
- Review aged receivables and project profitability.
Documents to collect
- Customer invoices
- Bank and card statements
- Contractor bills
- Payroll reports
- Payment processor reports
- Project or time-tracking summary
Common failure points
- Customer deposits recorded as earned revenue too early
- Contractor costs buried in general expenses
- Unapplied customer payments
- Owner reimbursements mixed with business expenses
- Old receivables left open
Example
A $12,000 retainer may be cash received before all related work is earned, depending on the contract and accounting method.
Sources
Keep learning
Accounts receivableAccounts receivable is money customers owe a business for goods or services already delivered.RevenueRevenue is income earned from a business's ordinary activities before subtracting expenses.Cash receivedCash received is money deposited or otherwise collected, regardless of whether it is current-period revenue.Gross profitGross profit is revenue minus the direct cost of producing the goods or services sold.Accrual basis accountingAccrual basis accounting generally records income when earned and expenses when incurred.
Educational information only. Booksmrt provides bookkeeping services, not tax, legal, audit, or investment advice. Confirm material accounting and tax decisions with the appropriate professional.