--- title: "Month-end close for marketing agencies & consultancies" description: "Month-end close for marketing agencies & consultancies: outsourced month-end close: checklist-driven accruals, prepaids, depreciation, reconciliations and." url: https://ledgerbpo.com/industries/agencies/month-end-close/ updated: 2026-09-11 publisher: LedgerBPO (SS Support Network LLC) language: en-US --- # Month-end close for marketing agencies & consultancies Month end close for marketing agencies & consultancies is more than reconciling the bank: it means releasing retainers from deferred revenue, valuing unbilled WIP, accruing freelancer invoices that have not arrived and matching pass-through media to rebills. Our CloseTrack checklist runs the same steps in the same order every month inside your QuickBooks Online or Xero file, with each step signed off by the dedicated accountant and reviewed by the team lead under Two-Tier Review. - Since 2020 - US · UK · CA · AU - Named accountant plus backup - Your software, no lock-in [Get a custom quote](https://ledgerbpo.com/get-a-quote/) [Book a 20-minute call](https://ledgerbpo.com/book-a-call/) Updated September 2026 ## How it runs for marketing agencies and consultancies The result is a P&L that reflects work performed, not cash received, delivered within five business days with a note explaining the movements. ## What is month-end close outsourcing? Month-end close outsourcing means an external accounting team performs the steps that turn a month of transactions into finished financial statements: reconciling every account, posting accruals, prepaids and depreciation, checking cut-off, reviewing and locking the period. You keep your software and your accountant. The provider runs the checklist on an agreed calendar and hands you reviewed statements. ## What we handle for marketing agencies and consultancies - Release earned retainer revenue from the deferred schedule - Accrue freelancer and media costs incurred but not yet billed - Value unbilled WIP from time and milestone data - Reconcile pass-through balances to platform statements and rebills - Sign off every CloseTrack step with maker-checker review ## The KPI that matters here Close signed off within 5 business days of month-end with every CloseTrack step logged and reviewed. ## 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 - [QuickBooks Online](https://ledgerbpo.com/software/quickbooks-online/) - [Xero](https://ledgerbpo.com/software/xero/) - [Stripe](https://ledgerbpo.com/software/stripe/) - [Bill.com](https://ledgerbpo.com/software/bill-com/) - [Gusto](https://ledgerbpo.com/software/gusto/) - [Expensify](https://ledgerbpo.com/software/expensify/) - [Dext](https://ledgerbpo.com/software/dext/) - Harvest - [All 50 platforms](https://ledgerbpo.com/software/) ## More for marketing agencies and consultancies Other services for agencies - [Bookkeeping](https://ledgerbpo.com/industries/agencies/bookkeeping/) - [Invoicing and billing](https://ledgerbpo.com/industries/agencies/invoicing-and-billing/) - [Accounts receivable](https://ledgerbpo.com/industries/agencies/accounts-receivable/) - [Accounts payable](https://ledgerbpo.com/industries/agencies/accounts-payable/) - [Bank reconciliation](https://ledgerbpo.com/industries/agencies/bank-reconciliation/) - [Financial reporting](https://ledgerbpo.com/industries/agencies/financial-reporting/) - [All agencies services](https://ledgerbpo.com/industries/agencies/) Month-end close in other industries - [Auto repair shops & dealerships](https://ledgerbpo.com/industries/auto/month-end-close/) - [Behavioral health practices](https://ledgerbpo.com/industries/behavioral-health/month-end-close/) - [Daycares, schools & education](https://ledgerbpo.com/industries/childcare-education/month-end-close/) - [Clinical laboratories](https://ledgerbpo.com/industries/clinical-labs/month-end-close/) - [The full month-end close page](https://ledgerbpo.com/services/month-end-close/) ## Frequently asked questions ### Why does our agency need accruals at month-end? Because freelancers and platforms often invoice weeks after the work or the spend, so a cash-basis close understates costs in busy months. We accrue known costs from approved timesheets and platform dashboards, then reverse the accrual when the bill arrives. Margin by client is only reliable once costs land in the same month as the revenue they supported. ### How do you release retainer revenue each month? The deferred revenue schedule lists each retainer, its service period and the amount earned to date. At close we post a journal releasing the earned portion to income and leaving the rest deferred. Where a client rolls unused hours forward, the schedule shows the carried balance so the account lead can see it. ### What does the close note include? A one-page summary of revenue by client, margin movements, new or lost retainers, accruals posted, WIP older than 30 days and any open questions. It is written in plain language for the owner, not for an auditor. See the month-end close service page for the full CloseTrack step list. Next step ## Books closed. Invoices paid. Every month. Tell us what is going on with your books or billing. You will hear from a named person within 1 business day, with a custom quote and a plan for the first close. - Reply from a named person within 1 business day - No setup fee, month-to-month - Your software, your data, no lock-in Start with a custom quote [Get a custom quote](https://ledgerbpo.com/get-a-quote/) [Book a 20-minute call](https://ledgerbpo.com/book-a-call/) Or call [+1-657-777-0006](tel:+16577770006) during US, UK or Australian business hours. --- Source: https://ledgerbpo.com/industries/agencies/month-end-close/ · Contact: https://ledgerbpo.com/contact/ · Full site map for agents: https://ledgerbpo.com/llms.txt