Skip to main content

They Ask, You Answer Mastery

A coaching & training program that drives unmatched sales & marketing results.


Sales Performance Mastery

Improve the competencies and close rates of your sales organization.

Web design

Website Mastery

Web design, development & training for your team.


HubSpot Mastery

Everything you need to get the most from HubSpot.

AI Mastery

AI Enablement Mastery

Unlock the power of AI in all aspects of your revenue operations.

Discover how IMPACT’s services can help take your business to the next level. Book a free 30-minute coaching session Book a free 30-minute coaching session
Learning Center
Learning Center

Learning Center

Free resources to help you improve the way you market, sell and grow your business.

[NEW] The Endless Customers Podcast is now available everywhere. Learn how to earn trust & win more customers in the age of AI. Listen Now Listen Now

Free Assessment: How does your sales & marketing measure up?


Free Assessment:

How does your sales & marketing measure up?
Take this free, 5-minute assessment and learn what you can start doing today to boost traffic, leads, and sales.
Eric Choma

By Eric Choma

Dec 7, 2018


Reporting & Performance Hiring a Marketing Team Careers in Inbound
Join 40,000+ sales and marketing pros who receive our weekly newsletter.

Get the most relevant, actionable digital sales and marketing insights you need to make smarter decisions faster... all in under five minutes.

Thanks, stay tuned for our upcoming edition.
Reporting & Performance  |   Hiring a Marketing Team  |   Careers in Inbound

The Top 3 Financial Metrics That Should Matter to Agencies (& How to Track Them)

Eric Choma

By Eric Choma

Dec 7, 2018

The Top 3 Financial Metrics That Should Matter to Agencies (& How to Track Them)

The framework for financial analysis has evolved substantially since the arrival of easy-to-use big data tools.

As a result, there is a lot  of differing advice on how to identify “important” financial metrics within your business.

This can make the topic seem intimidating, especially for marketers, but it doesn’t have to be.

If you read my last article, you know I come from a financial discipline as opposed to that of  a seasoned digital marketer. This means I am very data-oriented and precise when it comes to making decisions. This is a bit at odds with most marketing reporting.


Most of the key performance indicators (KPIs) marketers  focus on evaluate brand awareness, driving leads, and engagement rather than overall business health and growth like most financial metrics.

While those KPIs are extremely important, they tend to only measure progress towards a specific, defined goal within your marketing channels. They’re only a piece of the puzzle.

My goal is to help you improve the financial literacy of your organization as a whole.

The goal of this article is to help you, as a marketer, identify and analyze financial metrics to improve individual project profitability, client satisfaction, and overall company health.

There’s quite a few, but in this article,  I will highlight the top three that I believe marketing agencies, specifically, should start tracking today.

1. Profitability

This metric shouldn’t be much of a surprise. As every business owner knows (and most of their team members should know), in order to keep the lights on, your company needs to make money.

From a marketing agency perspective, there are several different profitability metrics that I recommend you start tracking immediately (if you aren’t already).

First, is gross profit, which your agency is already tracking this gross profit on a consistent basis.

Analyzing this metric helps you understand how much your company is truly making from every dollar of revenue and further identify areas where you can be more efficient. For example, if you can cut an unnecessary tool or find a more affordable one.

It can be calculated by subtracting your costs of goods sold (customer success salaries, agency tools & tech, client travel, etc.) from your total revenue.

Second, you want to also be able to track profitability on a client and project level.

This will help to identify the type of projects that make the most money for your company, highlight your most valuable products or services, and help to deliver better value to your clients.

Lastly, for service agencies, the hardest part about calculating project profitability is figuring out how to track client deliverables from a cost perspective, in other words, how much time and resources go into fulfillment.

At IMPACT, we track the value we deliver to our clients using a point system, as opposed to the traditional time-tracking methodology, however, both methods have the same goal.

Ultimately, your company needs to be able to track and allocate the time your employees spend on every client deliverable. This information will allow you to calculate profitability at the project and client level.

2. Accounts Receivable Aging

Profitability is very important, but before you can begin to focus on profits, you need to attract new business, sell your services, invoice them, and THEN...dun dun dun... collect payment.

Collections is what we call, in finance and accounting, accounts receivable.

Simply put, the accounts receivable aging report will show you a detail of all unpaid invoices, the related client, and how old the receivables are.

It’s a tricky task for a client service agency to handle collections in-house. As Controller here at IMPACT, it’s part of my job to make sure  we as well as our vendors get paid on time.

However, I was hired as employee #60 and the first in our financial department.  Most small companies do not have the luxury of having someone like me in-house to make sure everything is getting paid on time.

As a result, you typically will see more client success team members bearing the responsibility of selling AND collecting.

As most of you probably can understand, this can potentially put your team and client in an awkward position and worst case scenario, harm your long-term relationship.

My recommendation would be to use a tool like QuickBooks or to automate and streamline your invoicing process.

Not only will these tools automatically sync into your accounting systems for easier bookkeeping, they will allow you to easily send payment reminders via email, track your invoices on an individual level, and track the aging of your receivables (overdue, unpaid invoices) in real-time.

Accounts receivable management is a very important area of focus for any agency. If you are able to understand how long it takes your clients to pay on average (DSO, discussed below), you can better manage your company’s cash flow.

3. DSO (Days Sales Outstanding)

As your company starts to grow, you will also notice your accounts receivable account growing as well.


While you may be tempted to jump to conclusions about your collections process, it’s important to take a step back and analyze further.

Normally calculated monthly or quarterly, Days Sales Outstanding, or DSO. It tells you how many days, on average, it takes to receive payment from the invoice date. So, for example, if your average payment terms are Net 15, a DSO of 15.0 days would indicate a healthy, efficient collections process.

It’s important to understand your collections process and how long an average customer takes to pay in order to avoid any unexpected cash flow issues. For example, you want to collect payment for work completed as soon as possible so that you can use the cash to grow your business.

DSO is calculated by taking the ending Accounts Receivable for the period divided by the total Agency Sales Revenue for the period, multiplied by the number of days.


I am constantly thinking of new ways to improve our business processes here at IMPACT. One initiative is to sign as many new and existing clients up for ACH (aka Automated Clearing House, these payments are usually instant ).

Not only does this ensure timely payment, but it also can also potentially save you and your client some money on credit card processing fees/interest. A “win-win” as they would say.

Becoming a Numbers Nerd

In the interest of improving our overall financial literacy, let’s take a moment to digest all of that.

This is by no means an all-encompassing secret guide about three magical financial metrics that will make your marketing agency more profitable overnight. That doesn’t exist. Every single business is different.

However, we fortunately have an amazing community of entrepreneurs, marketers, and agencies here at IMPACT, all learning and iterating as we go.

As for you, I’m happy to help you figure out the right financial metrics that do work for you and your organization, how to track them, and how to improve.

What financial metrics are you tracking and how is it working for you? If you ever want to talk numbers, feel free to email me at because I am an actual nerd!


Free Assessment:

How does your sales & marketing measure up?
Take this free, 5-minute assessment and learn what you can start doing today to boost traffic, leads, and sales.

Related Articles

10 Marketing KPIs You Should Be Tracking

August 3, 2023
Carolyn Edgecomb Carolyn Edgecomb

Vanity Metrics Are The Most Misunderstood Numbers in Marketing

December 26, 2022
Ramona Sukhraj Ramona Sukhraj

What Marketers Need To Know About Switching to GA4 [Google Analytics 4]

July 30, 2022
John Becker John Becker

13 Valuable Marketing KPI Dashboards To Track Every Metric That Matters

July 14, 2022
Ramona Sukhraj Ramona Sukhraj

Get More Out of HubSpot Reporting With a Third-party Tool

July 9, 2022
John Becker John Becker

Databox vs. Geckoboard: Choosing the Right Data Platform for You

July 2, 2022
Ramona Sukhraj Ramona Sukhraj

Google Shares New Tools to Audit Website User Experience

August 12, 2021
Paul D. Grant Paul D. Grant

8 Best Digital Marketing Tools and Tech for Every Business (+ VIDEO)

March 31, 2021
John Becker John Becker

10 Google Analytics metrics you absolutely must track (updated)

March 29, 2021
Magdalena Day Magdalena Day

Google Analytics 4: Your business website analytics are now smarter

November 11, 2020
Vin Gaeta Vin Gaeta

Why a growth-driven design website will give you better traffic, leads, and sales

October 26, 2020
John Becker John Becker

Social Media KPIs: The 10 You Really Should Be Tracking and Monitoring

August 30, 2020
Ramona Sukhraj Ramona Sukhraj

Content ROI Examples: How to Nail Your Reporting Strategy with HubSpot

August 28, 2020
Liz Murphy Liz Murphy

How to Create a Powerful Monthly Content Marketing ROI Newsletter

August 7, 2020
Liz Murphy Liz Murphy

Google Analytics to offer 2 new probability metrics: purchase and churn

July 20, 2020
Vin Gaeta Vin Gaeta

Data privacy update: How the CCPA affects you and your paid advertising

July 15, 2020
Dan Baum Dan Baum

How attribution reporting helped iCIMS improve its Google Ads performance ft. Joel Maldonado of Path Interactive (Inbound Success, Ep. 150)

July 6, 2020
Kathleen Booth Kathleen Booth

What does Basecamp’s privacy-focused HEY email service mean for marketers? [IMPACT Toolbox June 2020]

June 25, 2020
Morgan VanDerLeest Morgan VanDerLeest

Google Ads now offers category reporting for your Search and Shopping ads

June 1, 2020
Vin Gaeta Vin Gaeta

How to Measure Content Marketing ROI, Celebrate Your Wins, and Keep Your Job

April 16, 2020
Jen Barrell Jen Barrell

Case study: Are you confident in the data behind your digital marketing strategy?

March 24, 2020
Dan Baum Dan Baum

Google makes it easier to hide content and check third-party reporting

February 4, 2020
Dylan Lepak Dylan Lepak

RIP HubSpot's 'links' tool: What you should use instead

January 8, 2020
Jessica Palmeri Jessica Palmeri

Why do regular backups of your website matter?

December 23, 2019
Daniel Escardo Daniel Escardo

What is Google Analytics? The pros, cons, and ugly missing link

December 17, 2019
Angela Bowman Angela Bowman