How it runs for marketing agencies and consultancies
We connect Harvest or your time tool for invoicing, Stripe for payments, Bill.com or Dext for bills and Gusto for payroll, and set classes or Xero tracking categories by client. The same design applies when you migrate from spreadsheets, FreshBooks or Wave.
What is accounting software setup and migration?
Accounting software setup is the configuration of a new ledger: chart of accounts, tax codes, bank feeds, items, users and apps. Migration is moving existing books from another platform or spreadsheet into that ledger so history, open items and balances carry across. Both end with a file that agrees to the old records and is ready for live posting.
What we handle for marketing agencies and consultancies
- Design a chart of accounts with fee revenue, pass-throughs and deferred retainers separated
- Set up classes or tracking categories for client and service-line reporting
- Connect Harvest, Stripe, Bill.com and Gusto with mapping rules documented
- Migrate open invoices, vendor records and W-9s from your previous system
- Write bank rules so recurring platform and SaaS charges code themselves
The KPI that matters here
New file live with opening balances reconciled and first invoices issued within 3 weeks of kickoff.
Agencies compliance notes
1099 contractor reporting
Agencies rely on freelancers, and the IRS requires Form 1099-NEC for nonemployee compensation above the annual threshold, which is $2,000 for payments made in 2026. We collect W-9s at vendor setup, code every contractor payment, and hand your preparer a reconciled 1099 report each January. Your firm reviews and files; we do not sign.
Retainers and deferred revenue
A retainer billed before the service period is a liability until the work is delivered. We keep a deferred revenue schedule that releases each retainer to income as hours are logged or the month ends, so your P&L matches the work actually performed.
WIP and unbilled revenue
Work delivered but not yet invoiced is an asset that lenders and buyers ask about. We reconcile unbilled hours from Harvest or your PM tool against the ledger monthly, so WIP is real, aged and collectible.
Gross versus net for media
ASC 606 and IFRS 15 ask whether the agency is principal or agent for media it buys on a client's behalf. We apply the treatment your CPA or accountant chooses and keep the pass-through account reconciled to platform statements so the answer is documented.
Agencies software we work in
More for marketing agencies and consultancies
Other services for agencies
Software setup and migration in other industries
Frequently asked questions
Should an agency use QuickBooks Online or Xero?
Both work well for agencies; the choice usually follows your country and your time tool. QuickBooks Online is common for US agencies and integrates directly with Harvest and Bill.com. Xero leads in the UK and Australia and pairs well with GoCardless and Dext. We set up either and explain the trade-offs on the discovery call.
How do you set up classes for client profitability?
Each active client becomes a class in QuickBooks Online or a tracking category option in Xero, and every revenue and direct cost line is tagged at posting. Overheads stay untagged. We keep the class list tidy by archiving closed clients quarterly so the P&L by class stays readable as the agency grows.
Can you connect Harvest so invoices come straight from timesheets?
Yes, Harvest invoices sync to QuickBooks Online or Xero with clients, items and taxes mapped during setup. We document the mapping, test it with a sample invoice and set the rule for who approves time before it is billed. Fixed-fee and retainer invoices are raised in the accounting file on their own schedule.
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