By Steve Vincent 
When you were a smaller agency, chances are you finished a project, sent the invoice and got paid. But as you grow and start to take on bigger projects and clients, this isn’t always the case.
Projects lasting several months, retainers and upfront payments can all play havoc on your balance sheets. Really, you need a more accurate view of what’s going on, to forecast effectively and track against monthly targets.
This is where ‘revenue recognition’ comes in.
This time, our Agency Masters, Steve and Jenna, explore:
- What ‘rev rec’ even is
- Benefits of the accruals and deferrals system
- When to start thinking about revenue management
- How to effectively allocate revenue
- How to get a better understanding of profits per project
Your 'too-long-didn't-watch' takeaway (TLDW):
You might have a client that asks you to bill them upfront, because if you don't there's a danger that they may lose their budget.
About the Agency Masters
Join our agency management experts for best-practice advice, tips and industry benchmarking, every month. You'll either leave with a smugness that you're doing everything just right, or a sigh of relief that you've spotted room for improvement.
Get some brainfood. Check out our live webinars!
