Category: Accounting Strategy

My buddy who owns a digital agency wanted to jump start a metrics-driven culture but wasn’t sure where to start. We sat down over some good Scotch and cigars to chat about it. Here are the 9 metrics that I’ve suggested as an easy place to start and covers all 3 aspects of an agency infrastructure. […]

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There are two types of metrics, input metrics (behaviors) and output metrics (results.) By understanding their differences and being able to identify them in our day to day activity, we can significantly increase our effectiveness in achieving our goals. Output Metrics (Results) Goals. Most of our goals are set around output metrics: $5 million in […]

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Three years ago my buddy with an already successful company wanted to start a new e-commerce business. He shared the thought in our CEO group but it wasn’t well received. After all, at $400 in monthly revenue, the new idea appeared to be little more than a distraction from his “real” company. Fast forward to […]

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A friend running an agency reached out to me and was beating herself up for missing a 40% spend increase in one of her department. Like many agencies, she had an one-person bookkeeping team who she relied on to keep her books, pay the bills, and she wasn’t quite sure what her expectations should be. […]

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When an agency gets past $1 million in revenue, it gets harder for agency owners to ignore some of the back office operations that are starting to come apart. The agency’s accounting bookkeeping operations is among the first to go and probably the least favorite problem for entrepreneurs to deal with – clients fighting about […]

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Purge Your Chart of Accounts. Think of your chart of accounts as the backbone of your entire accounting infrastructure. If your millions of financial transactions are like printed photos, your chart of accounts are the photo albums that keep things organized. 90% of the chart of accounts I see are both too generic (resulted from […]

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Measure what you want done. It is no surprise that whenever we focus on an aspect of our business, it tends to get better. Accounting needs to be the tool that enables you to do that. Start from your top level business goals for the year then work your way back down to the exact […]

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Credit cards are a necessary evil, especially when used to invest in your business. We all have them, sometimes in multitudes, and use them on a regular basis. But they cause deep trouble in the way of  D E B T at high interest rates (anywhere between 12% to an obnoxious 41% APR) when used […]

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It takes me about 30 seconds to judge the quality of accounting work being done by a company by looking at their latest financial reports. Just a few weeks ago, I was chatting with a buddy of mine who runs a $2.3 million business and wasn’t feeling it. We sat down and the first thing […]

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If you don’t have good bones, everything collapses. Huh? I’m talking about your chart of accounts. The chart of accounts is the skeleton of your agency and can provide either very meaningful numbers or numbers that really don’t tell you anything. For those of you scratching your heads, a chart of accounts is a listing […]

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