The clients for advertising agencies are business enterprises, corporations, NGOs, and private companies. These agencies operate both on the local and global level for managing advertising expense accounting.
When an advertising agency is small with fewer employees and clients, the accounting is normally pretty simple and straightforward. However, as more employees come on board, and the client base increases, accounting becomes increasingly complex because of revenue generation from multiple sources. The increased use of digitalization and social media platforms are also adding complexities to the accounting process.
As more advertising companies are shifting their focus from traditional advertising to digital marketing by adopting digital content creation, running social media accounts, engaging with eCommerce, and other digital ways, a great synergy is emerging between digital advertising and digital accounting companies. Both being in the digital space, streamlining operation and reducing operational cost becomes easier. Digital accountants will be better positioned to understand the issues of non- tangible assets, payrolls for freelance employees, etc. peculiar to advertising companies. Even double taxation due to transactions between two jurisdictions can easily be avoided.
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