Understanding Agency Finance & Accounting

Communo x Paro Webinar Recap

Understand what makes your agency financially healthy and well-managed. In this webinar, Paro dove into a playbook created to run a profitable agency and how a freelance CFO can help an agency be financially better-managed and positioned for future success.

In Paro’s Playbook, there are 4 steps for setting an agency up to be financially successful: Set up ‘back office’ for success with tools and processesEstablish agency-level economicsEvaluate client-level profitabilityOptimize pricing

Set up ‘back office’ for success with tools and processes

Key question to ask: How can you operate your agency most efficient and efficiently? 

You have to make sure your agency has the right foundation.

When evaluating your own agency look at the basics:

How is your chart of accounts set up and is it useful? Evaluate key numbers such as the profit margin, gross margin, and payroll.

Answering this question and having these number are key indicators if an agency has a foundational finance problem or not.

When choosing your tools it is suggested to invest in a full service payroll tool. Lean on automated software to keep you in compliance. A full service tool keeps you on time and is hassle

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