agency profitability software
Most 'profitability' reports are hours × rate on both sides. That hides over-servicing as income and makes idle time vanish. Real margin is uglier and far more useful.
Agency profitability software has to compute margin from what the client actually paid and what the team actually cost, not from hours times a billing rate. Verbial recognises contracted retainer revenue per period, absorbs salaried cost at a stable monthly rate, prices hourly staff exactly, and shows the servicing gap: the work you gave away that the retainer never paid for.
Agency Profitability Software, done properly.
Revenue is the contract
Retainer amount plus pre-paid overages per period, straight-lined across the period. Cash from paid invoices takes precedence when it exists.
Cost is absorbed, not multiplied
Salaried people cost the same at 40 or 180 hours. Cost is spread at a standard monthly capacity and the unabsorbed remainder is reported as idle.
Per client, project, department, person
Every table reconciles to the same totals, so the department P&L and the client margin never disagree.
Servicing gap
Value delivered minus contracted revenue, per client. The single number most agencies have never seen.
Media gross profit
Campaign revenue minus influencer and vendor payments, tracked per project alongside labour margin.
Payroll integration
Fully loaded cost from your payroll provider, date-effective, so a raise never re-prices last year.
What a generic tool cannot model.
Admin-only by design
Compensation and margin are gated to admins everywhere, including reports, APIs and the Claude integration.
Data health panel
Every client with no contract on file and every person with no cost configured is named, so a flattering number is never silent.
Frequently asked questions
- How do you calculate marketing agency profitability?
- Take contracted revenue per client per period (the retainer plus any pre-paid overage), subtract fully loaded labour cost attributed to that client (hourly staff at their hourly cost, salaried staff at a stable monthly rate spread across the hours they logged) and any media pass-through cost, and report the unabsorbed salary as idle time rather than hiding it in client costs. Verbial does this per client, project, department and person, and every view reconciles.
- Who can see margins and salaries?
- Admins only. Account managers and directors see revenue and budgets; members and managers see hours only.
- Does it need payroll data?
- It needs a fully loaded cost per person, which can come from your payroll provider or be entered per person with an employer burden multiplier. People with no cost configured are named on the data health panel rather than costed at zero.
Try agency profitability software on your own clients.
Free trial, no card. Import from your current tools with a dry run and rollback.