Accountants for marketing agencies should show what remains from each retainer after payroll and tax. Egbenn keeps that answer current before the next offer goes out.
A new salary reaches further than the wage once PAYE, pension and employer National Insurance are added. The unanswered question is whether the retainers still cover payroll, tax and the owner’s pay.
Egbenn Accountancy is an ACCA registered practice for owner-run marketing agencies across Hertfordshire and London. Crosby Enninful keeps bookkeeping, payroll and tax current for a fixed monthly fee. He models each hire against retainers before the offer goes out.
Monthly income is set against delivery costs, payroll, tax and the owner’s pay.
Salary, PAYE, pension and employer National Insurance are included before an offer is made.
The cash plan shows when payroll, corporation tax, salary and dividends can be paid.
These problems start with ordinary agency decisions and become expensive when nobody checks the full cost.
“I want to hire an account manager, but I cannot tell whether our current retainers will cover the full cost.”
The wage was budgeted. PAYE, pension, employer National Insurance and the timing of client payments were left out.
“Our retainers looked healthy, then the corporation tax payment arrived in the same month as payroll.”
Cash committed to salaries and suppliers was also needed for tax. The payment date became the first warning.
“I have kept paying myself the usual salary and dividends, even though two retainers ended this quarter.”
The owner’s pay stayed fixed while agency income changed. That left less cash for payroll and replacement work.
What changes once the advice is in the room?
The full employment cost is checked before the offer goes out. Payroll and tax are placed on the same cash plan. Salary and dividends are reviewed against current profit and cash.
Answer these questions about the accountant who looks after the agency today.
Question 1 of 3
Could they tell you today what this year’s corporation tax bill will be?
Could they calculate the full employment cost before your next offer goes out?
Could they show whether current retainers cover payroll, tax and the owner’s pay?
There is a real gap between filing the accounts and helping with decisions. The free growth review is the next sensible check.
One or two yeses means part of the agency is covered. The costed-hire example shows what should happen before every offer.
Three yeses means the agency is well served. The guides can help you prepare stronger questions for future decisions.
Annual filing has a purpose, but an agency also makes decisions throughout the year.
Annual accounts and returns are prepared after the year ends.
Payroll is processed from the instructions supplied.
The tax position appears when the accounts are ready.
Questions about hiring may sit outside the filing work.
Retainers, payroll and tax are reviewed during the year.
The full employment cost is modelled before an offer.
Salary and dividends are checked against current profit.
Crosby gives his opinion when a decision is due.
Eight practical checks show whether the next hire rests on current information.
Are all active retainers listed with their monthly value?
Yes means recurring income can be tested against payroll.
Are project delivery and freelancer costs assigned to the right clients?
Yes shows what each retainer contributes after delivery.
Does the hiring budget include PAYE, pension and employer National Insurance?
Yes means the budget covers more than the advertised wage.
Is payroll timed against the dates clients actually pay?
Yes reduces the chance of a good month creating a cash shortage.
Is the corporation tax payment included in the cash plan?
Yes keeps tax separate from money available for hiring.
Are salary and dividends reviewed when retainers change?
Yes keeps the owner’s pay connected to profit and cash.
Can each team member’s cost be compared with the work they support?
Yes helps the agency judge capacity before recruiting.
Can the accountant explain the next hire in plain English?
Yes means the decision has been checked before the offer.
The monthly work supports payroll and tax, while the advice supports hiring and owner pay.
Bookkeeping, payroll, pensions and VAT stay current as clients and staff change.
See if Egbenn fitsCorporation tax and the director’s personal tax are reviewed before payment dates arrive.
See if Egbenn fitsManagement accounts and a cash plan show whether current retainers can carry the role.
See if Egbenn fitsAn agency owner needed to know whether the current retainers could support another salary.
The salary was modelled with PAYE, pension and employer National Insurance, then tested against retainers.
A hire was made with the retainers shown to cover it. A cash plan around payroll supported the offer.
Management accounts keep each future hire tied to retainers, payroll and available cash.Clients described by type. Names withheld.
The work starts with the immediate decision, then brings the agency’s bookkeeping and deadlines into step.
The quiz leads to a personalised recommendation and, if there is a fit, the free growth review.
Egbenn contacts the previous accountant, collects the bookkeeping file and checks upcoming deadlines.
Retainers, salaries, tax payments and the owner’s pay are placed on one timetable.
Current management accounts support conversations about hiring, office costs and director pay.
A pre-revenue agency still testing its first offer is outside the usual client profile.
An agency run beside a full-time job is outside the usual client profile.
Short-life personal service companies and one-off freelance work fall outside the firm’s focus.
A prospect seeking the lowest quote, or false income or expenses, will not be taken on.
The free growth review checks the fit before either side commits to anything.
The fixed monthly fee can cover bookkeeping, VAT, payroll, pension duties, year-end accounts, corporation tax and the director’s personal tax. Management accounts and planning can be included where the agency needs them. Crosby agrees the scope and fee before work starts, with no billing from a timesheet.
Yes. Most agencies approaching Egbenn already have an accountant who files the annual forms but gives little advice during the year. Start with the intake quiz and free growth review. If there is a fit, Egbenn handles the professional handover. It also checks upcoming filing and payment deadlines.
You do not have to move software simply because you switch accountant. Egbenn first checks whether the current set-up keeps bookkeeping, VAT and payroll current. If a change is needed, Crosby explains why and plans it around the agency’s payroll and filing timetable.
Egbenn writes to the current accountant, requests professional clearance and collects the bookkeeping and tax information. The handover is checked against the next payroll, VAT, accounts and tax deadlines. Catch-up work is identified before the ongoing monthly scope is agreed.
Egbenn models the salary with PAYE, pension and employer National Insurance included. That full cost is tested against active retainers, delivery costs, payroll dates and tax payments. The owner can then see how much recurring work needs to remain before the offer goes out.
Crosby reviews salary and dividends against current profit, available cash and the director’s tax position. The review also considers payroll, corporation tax and personal tax dates. Advice is given during the year, while the owner can still adjust what happens next.
Answer a few quick questions for a personalised recommendation and, if there is a fit, the free growth review with Crosby.
See if Egbenn fitsAsk Crosby how Egbenn would test the role against retainers, payroll and tax.
Book a free growth reviewRead the guides and prepare the questions your current accountant should answer before the next agency decision.
Read the guides