There are tons of accounting software options out there, but not all are built with a digital agency in mind.
You need something that does more than just track income and expenses—it should help you manage client projects, billable hours, and possibly handle payroll, all while keeping your finances in check.
In short, you need software that’s tailored to your agency’s needs.
Spoiler alert, we have our favorite: QuickBooks Online.
It’s user-friendly, offers powerful reporting, and connects effortlessly with the tools you’re already using.
But don’t just take our word for it—let’s dive into why QuickBooks stands out, along with a few other solid contenders you might want to consider.
Your Agency Accounting Software Should Tick These Boxes
Before diving into the options, let’s quickly cover what you should be looking for:
1. Ease of Use: If the software feels like it’s designed for a CPA with three screens and two spreadsheets open at all times, it’s probably not the right fit. You’re looking for something that’s user-friendly, intuitive, and easy for everyone on your team to navigate.
2. Project-Based Accounting: Since your business relies on projects and client relationships, it should be flexible enough to track time, and expenses, set budgets, and allocate resources. This allows you not only to bill clients accurately but also to measure the profitability of each project.
3. Time Tracking and Billing: Built-in time tracking helps you stay on top of hours worked, especially if you’re billing hourly or working with freelancers. Your ideal accounting tool should link time tracking to invoicing so you don’t miss out on any billable hours.
4. Expense and Revenue Management: Because GAAP (Generally Accepted Accounting Principles) requires the use of accrual-basis of accounting, which is essentially recording revenue as soon as it’s earned (even if payment hasn’t arrived) and expenses when they’re incurred (even if they haven’t been paid yet), your software should be able to support this method. It’s not only important for compliance purposes, but gives you a clear, real-time view of project costs, income, and overall financial health.
5. Financial Reporting and Forecasting: Almost every accounting software has this functionality but look for one with flexible, customizable reports that let you see cash flow, project performance, and client profitability, out-of-the-box.
6. Integration: Your accounting software should “talk to” all (or most) of the other tools you’re using, like project management, CRM, or payroll systems. This integration saves time and reduces the headache of duplicate data entry.
7. Mobile Accessibility: Just as agency life is on-the-go, your software should be too, so you can check reports, approve expenses, track time, and manage finances wherever you are.
Best Accounting Software for Agencies
1. QuickBooks: Our Top Pick for Marketing Agencies
As we mentioned—QuickBooks is the one we recommend.
Why? Because it offers everything you need in a nice, neat package. It’s built to handle your agency’s day-to-day financials, project-based accounting, and the unique needs of service-based businesses.
Why QuickBooks is Perfect for Agencies:
- Time Tracking: QuickBooks lets you log billable hours easily with its built-in time tracking tool. You can track hours worked by employees and freelancers, and then link that time directly to invoicing. It’s a game-changer if you’re billing clients by the hour. So no more guessing about who worked when, and no more missed billable hours.
- Project-Based Accounting: Your agency works on a lot of different projects with different clients. QuickBooks allows you to track the costs and revenue for each project separately, so you can see if you’re staying on budget or if that new campaign has you in the red.
- Reports That Actually Help You: Forget generic reports that don’t actually tell you what’s going on. QuickBooks gives you customized reports that focus on key things for your agency—like Client Profitability Reports and Project Profitability Reports, so you can see where your agency is making money (and where it’s not).
- Payroll Integration: QuickBooks integrates with payroll platforms like Gusto, making paying your team a seamless experience. Plus, it automates your payroll taxes, so you don’t need to stress about compliance.
- Invoice and Payment Tracking: QuickBooks automates invoicing, tracks payments, and even gives you smart payment predictions. This means no more manual invoicing, and you’ll always know when a client is due to pay.
- 500+ Integrations: QuickBooks integrates with all kinds of other software your agency likely already uses, from Slack to HubSpot to Trello. This means you don’t need to start from scratch or deal with clunky workarounds.
- Mobile Access: You’re not always at your desk—and QuickBooks gets that. You can access your financials on-the-go with its easy-to-use mobile app. Whether you’re checking cash flow, approving expenses, or looking at reports, QuickBooks keeps you connected wherever you are.
QuickBooks has been around for a long time, and for good reason. If you’re looking for the most robust accounting software for your agency – it’s your best bet. You can check it out here: https://quickbooks.intuit.com/
Curious about other options? Here are a few others to consider:
2. Xero: Great for Small Teams, Not As Robust as QuickBooks
If you’re running a lean operation or just starting out, Xero is another solid option. It’s clean, simple, and perfect for smaller teams, but it’s not as customizable as QuickBooks.
Why Xero is a Good Choice for Agencies:
- Time Tracking: Xero offers seamless integration with time-tracking tools like Harvest and TSheets. You can log hours and link them to specific clients or projects.
- Reports: Xero’s reporting is simple and intuitive. You can track income, expenses, and profit by client or project.
- Integration: Xero integrates with most of the same tools as QuickBooks, including Gusto for payroll and HubSpot for CRM.
- Payroll: Xero offers built-in payroll options, though it’s not as robust as QuickBooks in this department.
While Xero is more affordable and easier to use, it lacks some of the depth and flexibility QuickBooks offers for more established agencies.
You can check it out here: https://www.xero.com/
3. FreshBooks: For Agencies That Need Simplicity
If you’re a small agency that doesn’t want to deal with the complexities of QuickBooks or Xero, FreshBooks is a great option. It’s simple, intuitive, and perfect for service-based businesses like agencies.
Why FreshBooks Works for Agencies:
- Invoicing: FreshBooks is known for its super-easy invoicing. You can create professional, branded invoices in minutes and automate the process.
- Reports: It offers basic financial reporting like profit and loss, tax summaries, and client reports. It’s not as advanced as QuickBooks, but it’s plenty for small agencies.
- Payroll Integration: FreshBooks integrates with payroll platforms like Gusto, but doesn’t have its own payroll solution.
FreshBooks is great for small agencies that don’t need heavy-duty features but still want to stay on top of time tracking and invoicing.
You can check it out here: https://www.freshbooks.com/
4. Zoho Books: Best for Agencies Using Zoho Ecosystem
Zoho Books is a solid option if you’re already using other Zoho apps like Zoho CRM or Zoho Projects. It’s not as popular as QuickBooks but offers solid features for project-based accounting.
Why Zoho Books Might Be Right for You:
- Time Tracking: Zoho Books allows you to track billable hours and attach them directly to projects.
- Reports: With Zoho Books, you get detailed reports on income, expenses, and even project profitability.
- Integration: It integrates with Zoho Projects, making it a good fit for agencies already in the Zoho ecosystem.
- Payroll: Zoho integrates with Zoho Payroll, so it’s a good choice for agencies looking for an all-in-one solution within the Zoho platform.
Zoho Books is a good option if you’re looking for a more affordable solution but don’t need the deep capabilities of QuickBooks.
You can check it out here: https://www.zoho.com/books/
5. Wave: Great for Small Agencies on a Budget
Wave is free accounting software that’s perfect for very small agencies that only need the basics. It doesn’t have the depth of QuickBooks, but it’s a great starting point for budget-conscious agencies.
Why Wave Works for Small Agencies:
- Time Tracking: Wave doesn’t include built-in time tracking, but it can integrate with third-party tools like Toggl or Harvest.
- Reports: It offers basic financial reporting, including P&L and tax summaries.
- Invoicing: Wave lets you create professional invoices and track payments easily.
- Payroll: Wave has limited payroll features and works best for very small teams.
Wave is a good free option for small agencies, but it’s limited in features and not ideal for growing businesses.
You can check it out here: https://www.waveapps.com/
Our Recommendation: QuickBooks For Agencies
While there’s no shortage of options out there, QuickBooks Online is still our recommended software of choice.
It gives you everything you need to keep your finances on track—project-based accounting, time tracking, payroll integrations, and robust reporting capabilities.
But, don’t just take our word for it. Most of these accounting software tools offer free trials and demos so that you can test which one feels the most intuitive and helpful for your team.
Take advantage of it!
If you need extra help with your agency finances, including tax strategy, budgeting, pricing, cash flow forecasting, or overall growth strategy, we’re always here to help.
Simply book an introductory call with our team using the calendar down below to see if it’s a good fit.
Or have a question for us? Leave a comment down below!
Until next time!
