How it runs for marketing agencies and consultancies
Short payments are logged with a reason, unapplied cash is worked to zero before close, and the aged receivables report you see on Friday reflects money actually received rather than money still sitting in a clearing account.
What is cash application?
Cash application means matching money received from customers to the invoices it pays and recording that in the accounting system. It covers bank receipts, checks, lockbox files, card payouts and remittance advices, including partial payments, deductions and payments with no reference. Done well, the aging is accurate and no customer is chased for an invoice they already paid.
What we handle for marketing agencies and consultancies
- Apply ACH, wire, card and check receipts to invoices within 1 business day
- Split single payments that settle several invoices using remittance detail
- Log short payments with the disputed line and hand them to the account lead
- Match Stripe charges to invoices net of fees using payout reports
- Clear unapplied cash to zero before every month-end close
The KPI that matters here
95% of receipts applied within 1 business day and unapplied cash at zero at every month-end.
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
Cash application in other industries
Frequently asked questions
What do you do when a client pays without a remittance?
We match by amount and client first, then check the AP portal or the client's payment email. If the payment still cannot be tied to invoices, the BillingLine desk asks the client's AP contact in your name for a remittance. The payment sits in a clearing account, visible on the weekly note, until it is applied.
How are short payments handled?
The paid portion is applied to the invoice and the shortfall is logged with the client's stated reason, often a disputed media line or a PO cap. The account lead decides whether to credit or chase. A credit note closes the balance; a chase moves it to DunningDesk. Either way the invoice never shows as fully paid when it is not.
Do you apply Stripe payments individually?
Yes, each Stripe charge is applied to its invoice at the gross amount, with the processor fee posted to an expense account, so the customer's balance is cleared correctly. The payout report ties the sum of those charges, less fees and refunds, to the bank deposit. See the payment processor reconciliation page for agencies for the full workflow.
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