Smart in 60 seconds! Today: Overheads.
New series in the "The Agency bloggers". From now on we explain here regularly the most important terms of agency controlling: briefly, concisely, and practically. Today: Overheads.
Whoever wants to determine the success of his agency must at first cleanly separate and analyse two cost elements: Direct costs and overheads. While the direct costs (e.g. for freelancers) are directly attributable to payers - i.e. the customer budgets and projects - for overheads this is only indirectly possible.
These include the rent for rooms and equipment as well as leases for vehicles, performance such as self-promotion as well as the salaries in the administrative sector and often also in management - as long as they are not attributable to customers directly. The distribution is made via an individual key. Agency software helps to register the overheads, assign them to the payers and present them in real time. Basically, since the overhead costs do not or only indirectly concern business operations, agencies should keep their share as low as possible.