Keep client advertising budgets separate from agency operating cash

Before accepting money for advertising, confirm who contracts with the platform, who owns the ad account, and how the agency fee is charged. A client-funded media budget can create a different obligation from payment for the agency's own services. Have the agreement and accounting treatment reviewed for the actual arrangement.

Specify how unused funds, overspending, taxes, refunds, and platform credits are handled. Requirements to segregate funds or use particular account structures can depend on the contract and applicable law. A bookkeeping label does not override those requirements.

For each client, record opening funds, new advances, authorized media charges, approved agency charges where applicable, refunds, and the remaining balance. Tie every charge to a platform statement or other evidence. Avoid using one combined clearing balance without a supporting client schedule.

In an illustrative account, a $10,000 advance less $7,500 of verified advertising spend leaves $2,500 before any separately authorized fees or adjustments. That remaining amount should not automatically be treated as the agency's earned revenue or available cash for payroll.

Agree campaign limits, who can increase them, and how quickly the client must replenish funds. Compare platform spend with the latest funded balance often enough for the campaign's pace. A monthly accounting review alone may be too slow for a rapidly spending account.

Keep platform billing and campaign-reported spend distinguishable. Credits, taxes, billing delays, and currency conversion can make the invoice differ from the performance dashboard. Use the appropriate source for cash reconciliation and explain the timing difference in the client report.

At campaign end, check unsettled charges, pending refunds, and credits that may arrive later. Confirm how each belongs to the client under the agreement. An unused daily budget in the platform is not necessarily the same as refundable cash held by the agency.

Obtain approval for the final reconciliation and any return or carryforward of funds. Keep the payment confirmation and client statement together. Review access to the ad account when the engagement ends so former team members cannot restart spend against a balance nobody is monitoring.