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How to Improve Project Profitability: A Financial Guide for Agencies

Delivering brilliant creative work is just one part of running a successful agency - making sure your projects are profitable is just as important.

Many agencies face the same challenge: even when the work is flowing, profits can be tight. With the right financial strategies in place, you can ensure every project support your agencies success.

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Here's how to take control of project profitability.

Price Projects Realistically
Why it matters

Under pricing is one of the fastest ways to erode profitability. Pricing should fully reflect the time, resources, and epertise required - plus a margin that support agency growth.

How to do it:

- Build detailed project scopes to avoid hidden costs.

- Use historic project data to inform your pricing models.

- Factor in internal overheads, not just direct labour cotss.

Improve Scope Management
Why it matters

Scope Creep!!!
Where clients request additional work outside of the original brief, it can drain profits if not controlled.

How to do it:

- Set clear deliverables and timelines upfront.

- Have a formal change order process for additional work.

- Train project managers to spot and manage scope creep early.

Track Time and Costs Accurately
Why it matters

You can't manage what you don't measure. Real-time tracking helps you catch overruns early, not after the project closes.

How to do it:

- Use time tracking tools consistently across the team.

- Compare estimated vs actual hours regularly during delivery.

- Allocate direct costs to a project in your accounting system.

Focus on Project Forecast Accuracy
Why it matters

Strong forecasting ensures you plan resources effectively, avoid bottlenecks, and protect profitability across multiple projects.

How to do it:

- Update forecasts regularly based on project changes.

- Factor in realistic deadlines and capacity.

- Set milestones to track progress and re-forecast where needed.

Analyse Project Profitability Post-Delivery
Why it matters

Reviewing the financial performance of each project helps you learn, improve and make smarter pricing and delivery decisions in future.

How to do it:

- Conduct post-project financial reviews: Was the project profitable? Where did margins slip?

- Use findings to refine future pricing, scoping and processes.

- Share insights across your leadership and project teams.

How NEXA Accounting Helps Agencies Boost Profitability

  • Tailored project reporting dashboards

  • Profitability analysis across clients, services and teams

  • Pricing and scoping advice based on real-world financial data

  • Strategic financial advisory to support sustainable growth

Ready to Make Every Project More Profiable?

Better financial visibility means better project outcomes.​

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Contact us today to find out how we can help you build a more profitable, resilient agency.

If you would like a PDF version of this document, please drop us an email and we will be happy to send you a copy.

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