Accounting at an ad agency

 I am starting a new digital marketing agency which will get money from clients for taking out online ads in their name. 

The money clients pay us for taking out ads is separate from what we bill them for our service charges. Obviously, the ad spend amount cannot be counted as our revenue. Our service charges are our revenue. 

How should we account for the ad spend money received? 

Though this question is in the accounts category, Any additional information about how to handle the tax/filing aspect will also be much appreciated. 

Replies (1)

I’m not sure about taxation for services, probability every revenue is taxed...

next you can show the ad money as revenue because you know transaction price is charged through ‘ cost plus and a margin method’ so everything is a revenue, don’t be surprised because when start a company, you will incur operating expenses and they are covered through ad spent + service charge. You can disclose this information in the revenue schedule in the statements.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
25 August 2026
Senior Accountant

MG Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Articles

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Foundation

View Details
Company
Featured 12 September 2026
Assistant Manager - Finance & Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Article Assistant

SGNG & Associates

New Delhi

CA Inter

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details
Company
19 September 2026
CA/Semi-CA/BCom

Pravin Sarvaiya

Mumbai

CA Inter

View Details
Company
09 September 2026
SENIOR AUDITOR & ACCOUNTS MANAGER

Anupam Parashar & Co.

Ghaziabad

CA Final

View Details