Why a single system is what is a must today for ad agencies ?
By Vincent G. Dong, CPA, CA
Last week, when I spoke with an agency during an initial discovery, I asked what software programs they were using to run their ad agency. In fact, that is one of the first questions I ask an agency. Without naming the actual software companies, the owner listed off several programs for tracking time, another one for project management, a third one for resourcing, a fourth for billing and last of all, an accounting program to handle the financial reporting.
Oddly enough, there was no program for management reporting.
In addition, when I went online to review these different software programs, they were all proud to say that they were the “go-to” program for agencies. Legends in their own minds.
It reminded me of the first time I rode my bike and yelled out to my parents, “Mom! Dad! Look at me!!!”
I have been told to not believe everything I read.
The common theme with these software programs was that none of them talked to each other. Why should they? They all said that they were the best thing since the introduction of Tik Tok. Oddly enough, it has been decades since the last end-to-end software company in the ad industry was created and the current stand-alone PM systems are not decades old.
Hmmmmm. I smell opportunity but I will save that for another day.
Back to my agency discovery, as often is the case, the agency had to use yet another program to tabulate and collect data from multiple software programs to make sense of the consolidated data. By the time it was cobbled together, the data was well...out of date. I have seen Excel as this very program. Good old Microsoft. Excel has been a staple tool to the ad industry! Thank you very much Mr. Gates.
Agencies using multiple software programs to run their agencies have a reporting dilemma. It is a time- consuming challenge for In-house accountants, controllers, directors of finance and VP’s of Finances and even project managers!
These people spend a ton of time every month compiling data for month-end reporting using excel and their accounting program AND some of them even spend gobs of money building API’s to connect a PM system to the accounting system. These are the people with the same responsibilities each month, smart people, people who have gotten used to putting in this kind of time for data gathering and that is the routine that they have learned and gotten used to. Most importantly, they may simply not have the time to see what other programs are out there to save them the precious commodity... of time.
Imagine the dozens of hours EVERY MONTH going into this exercise only to have the lingering thought...is the information accurate BECAUSE it had to be pulled together manually. Imagine SAVING those hours moving forward.
There is actually a world where the data is automatically compiled leaving time to analyze data vs spending tons of valuable time compiling data.
This IS possible.
Once I find out that there are multiple programs firmly rooted at an agency, I do have not suggest or recommend a change to another software company. I also want to determine what kinds of reports are being manually compiled and how many hours are scorched each month doing so. Such suffering.
Depending on the mindset of the agency, sometimes, I even tell the client to suffer some more, for a period of time, until they have either come to their senses or they have finally grown tired of being the central data collector for the numerous software systems in place.
What I point out to them is the more time spent collating important data for the agency, the less time they have in reviewing the data (noting especially that it is not in real time) and acting upon it. I have seen this happen with small AND large agencies yet they do not change. They so often feel that the devil they know is better than the devil they do not know. I have news for you. Software does evolve.
What is my point?
If you have smart people working in an agency and working inefficiently manually compiling data, there is a direct impact on morale, accuracy of data for decision-making, always spending time trying to integrate data and it really is not the ideal use of an agency’s precious resources.
In today’s marketing world, agencies represent themselves as leading-age marketers yet, why are they so antiquated in the collection of project management and management reporting data for themselves?
Agencies are faced-pace. Everything is needed yesterday. Do you know agree that instantaneous, accurate and timely data is more important than ever before?
Why not arm the data collectors with better software tools then? Or...with the use of one software program that manages both PM and Accounting.
Let’s also get one other thing out of the way. There is no payroll-based software program for the industry. Payroll is a discipline unto itself and if you want to enter payroll information into your existing program, it will be a periodic journal entry. On to more pressing software.
Let’s also get another thing out of the way. There is no perfect Utopian, UX, UI-designed program in the industry. So, stop looking for one.
I work with five of the all-in-one software programs in the industry. Each of them has their features and benefits. Each of them DOES NOT make bacon and eggs. Yes, each of them can handle project management, resourcing, time sheet entry & reporting, CRM, media, management & financial accounting.
Why not test drive one or more of these programs and happy to ride shot-gun with you! Happy Motoring!
Oh, back to the agency using multiple programs that I consulted did so for one more year.
One year later, they moved to a single program. They had suffered long enough.
Vince Dong
