Which finance apps help creative agencies manage projects and payments?

Key takeaways

• Your core stack needs three parts: a financial hub (like Xero or QuickBooks), a project management tool (like Asana or Monday), and a time-tracking app (like Harvest or Toggl). Connecting them is what creates a powerful creative agency finance software stack.
• Xero is often the better choice for creative agencies over QuickBooks because its open API and modern interface make it easier to connect with the other creative tools you already use for workflow automation.
• App integrations are not just nice-to-have; they are essential for tracking project profitability in real time. The right connections automatically turn timesheets into invoices and project data into financial reports.
• Start simple and add tools as you grow. A freelancer might only need Xero and a time tracker, while a 10-person agency needs full project-to-payment automation to maintain healthy margins.
• The goal is a single source of truth. Your finance software stack should eliminate manual data entry, giving you accurate, real-time insight into which clients and projects are actually making you money.

What is a creative agency finance software stack?

A creative agency finance software stack is the connected set of tools you use to run your business financially. It's more than just accounting software. It's how you track time on projects, manage client work, send invoices, and see your profit.

Think of it as the central nervous system for your agency's money. For a creative agency, this stack typically links three core areas: your project management, your time tracking, and your accounting. When these tools talk to each other, you get a clear picture of performance without manual spreadsheets.

Without a connected stack, you're constantly copying numbers from one place to another. This leads to errors, delays, and a foggy view of which projects are profitable. A proper creative agency finance software stack automates this flow, giving you back time and clarity.

Why do creative agencies need a specialised software stack?

Creative agencies need a specialised stack because their work is project-based, time-sensitive, and client-focused. Generic business software doesn't handle retainer billing, project-based profitability, or creative team utilisation well. A tailored stack gives you the specific data you need to make smart commercial decisions.

Your main challenge is linking creative output to financial input. You need to know if the beautiful brand campaign you just delivered was actually profitable after accounting for all the designer and strategist hours. Standard accounting software alone can't tell you that.

A connected creative agency finance software stack solves this. It tracks time against specific projects and clients, then feeds that cost data into your accounts. This shows you the real gross margin on each job. It also automates invoicing from timesheets, helping you get paid faster for the work you've done.

In our work with creative agencies, we see this as the biggest differentiator between agencies that struggle with cash flow and those that scale profitably. The right tools provide the commercial intelligence you need to price future work accurately and manage your team's capacity.

What are the core components of a creative agency finance stack?

The core of your stack has three essential parts: a financial hub, a project management centre, and a time tracking layer. These are the non-negotiable foundations. Everything else you add supports these three core functions.

First, you need a financial hub. This is your accounting software, like Xero or QuickBooks. It's where all money flows in and out. It handles your invoices, bills, bank feeds, and tax calculations. It becomes your single source of financial truth.

Second, you need a project management centre. This is where work happens. Tools like Asana, Monday, or Basecamp manage client projects, tasks, and deadlines. For your finance stack, the critical feature is the ability to connect projects to financial data.

Third, you need a time tracking layer. This is how you capture the cost of your work. Apps like Harvest, Toggl Track, or Clockify record time spent by your team on specific projects and clients. This data is the lifeblood of your profitability analysis.

The magic happens when these three components are integrated. Time tracked in Harvest automatically updates the project in Asana and creates a draft invoice in Xero. This level of workflow automation turns days of admin into minutes, giving you real-time insight into project health.

Xero vs QuickBooks: which is better for creative agencies?

For most creative agencies, Xero is the better starting point. While both Xero and QuickBooks are powerful accounting systems, Xero's design philosophy and open ecosystem often align better with the way creative agencies operate and use other software tools.

The debate between Xero vs QuickBooks often comes down to integrations and usability. Xero was built as a connected platform from the start. It has an open API (the way apps talk to each other) that makes connecting to project management and time-tracking tools straightforward. This is crucial for building a seamless creative agency finance software stack.

QuickBooks is a robust and popular accounting system, especially in some markets. However, it can sometimes feel more like a traditional accounting tool retrofitted for the cloud. For a creative team that isn't finance-focused, Xero's cleaner, more modern interface is often easier to adopt and use daily.

Consider your app integrations. Check the app marketplace for both platforms. You'll likely find that the specific project management and time-tracking tools common in creative agencies (like Harvest, Asana, or Monday.com) have deeper, more reliable connections with Xero. This workflow automation is where you save hours each week.

That said, if you are already proficient in QuickBooks and your key tools connect well, it can work. The most important principle is choosing the hub that best connects to the other parts of your stack. For many creative agencies we advise, that hub is Xero.

How do app integrations create workflow automation?

App integrations create workflow automation by allowing your different software tools to share data automatically, without you having to manually enter it. This turns separate apps into one cohesive system, eliminating repetitive tasks and reducing errors.

For a creative agency, a classic automation flow looks like this: A designer finishes work on a client project and logs their time in Harvest. Harvest sends that time entry, tagged to the specific client and project, over to Xero. Xero then creates a draft invoice line item for that time, ready for you to review and send.

This is a powerful example of workflow automation. The designer didn't raise an invoice. The account manager didn't chase for timesheets. The data flowed from the point of work (time tracking) directly to the point of payment (invoicing). This can shave days off your billing cycle and improve cash flow.

Another key integration is between your project management tool and your accounting hub. When you create a new client project in Asana or Monday, it can automatically create a corresponding job or project code in Xero. This ensures all costs and income are tracked against the right project from day one, giving you accurate profitability data.

The goal of these app integrations is to create a self-updating system. Your financial reports in Xero always reflect the latest project status and team effort. This level of automation is what allows agency leaders to focus on client work and strategy, not administrative data entry.

What project management tools connect best with finance software?

The project management tools that connect best with finance software like Xero are those built with robust APIs and a focus on business operations. For creative agencies, top contenders include Asana, Monday.com, and Teamwork. These platforms offer direct integrations or connect easily via automation tools like Zapier.

Asana is a favourite for many creative teams due to its clean design and intuitive workflow. Its strength for your finance stack is the ability to tie tasks directly to clients and projects. When integrated with a time tracker like Harvest (which connects to Asana), you can see exactly which tasks are consuming budget, feeding that cost straight into your accounts.

Monday.com offers incredible flexibility to build custom workflows, which is great for agencies with unique processes. Its integration capabilities are strong, allowing you to push project data and updates into your financial hub. This is useful for tracking project phases against budget milestones.

Teamwork is built specifically for client-facing businesses like agencies. It has client portals, time tracking, and invoicing features built-in, which can then sync deeply with Xero. This can be an all-in-one approach for project management and basic financial tracking, though many agencies still prefer a dedicated accounting hub like Xero for complex financial reporting.

The key is to choose a project tool that your team will actually use consistently. The best integration is worthless if your designers and project managers aren't diligently updating task statuses and logging time within the system. Adoption is as important as the technical connection.

Which time-tracking apps are essential for profitability?

Time-tracking apps are essential because they capture your single biggest cost: your team's time. For profitability, you need an app that is effortless to use, connects to your other tools, and provides clear reports. Harvest and Toggl Track are the leading choices for creative agencies.

Harvest is arguably the industry standard for creative and professional service firms. Its strength is its simplicity and its deep two-way integrations. Team members can start a timer with one click in their browser or on their phone. That time is then attached to a specific client and project.

For profitability, Harvest shines in its reporting. It can show you, in real time, how much of a project's budget has been used, your team's utilisation rate (the percentage of paid time spent on billable work), and which clients are your most profitable. This data can feed directly into Xero, completing your creative agency finance software stack.

Toggl Track is another excellent option, known for its very user-friendly interface and powerful reporting. It's a great choice if your primary goal is understanding where time goes and improving team efficiency. It also integrates with a wide range of project management tools and can push data to accounting software.

The critical factor is mandatory use. Time tracking must be non-negotiable for everyone, from interns to creative directors. Without accurate time data, you are guessing at your project costs and your true gross margin. You cannot manage or improve what you do not measure.

How should you build your stack as a growing agency?

You should build your stack in stages, adding tools and integrations as your team grows and your processes become more complex. Start with the core trio (accounting, project management, time tracking) and ensure they are connected. Then, add specialised tools for proposals, expenses, and payroll as needed.

Stage 1: The Founder (1-3 people). Keep it simple. Use Xero as your financial hub. Use a capable time tracker like Harvest or Toggl. You might manage projects in a simple tool like Trello or even a well-organised spreadsheet. Focus on connecting your time tracker to Xero so every billable hour is captured for invoicing.

Stage 2: The Small Team (5-10 people). Formalise your processes. Introduce a proper project management tool like Asana or Monday.com. Make sure it integrates with your time tracker. This is where workflow automation becomes critical. You should now have a fully connected creative agency finance software stack where project status, time cost, and invoicing are linked.

Stage 3: The Scaling Agency (10+ people). Optimise and expand. You might add dedicated tools for specific needs: PandaDoc for proposals and contracts, Pleo or Soldo for company cards and expenses, and a dedicated payroll provider that integrates with Xero. The goal is to have every financial process connected to your central accounting hub, creating a completely automated back office.

At every stage, avoid the temptation to buy every new tool. Each addition should solve a clear pain point or automate a manual process. Too many disconnected apps create confusion and data silos. The power is in the integration, not the quantity of software.

What are the biggest mistakes agencies make with their software stack?

The biggest mistake is treating each software tool as an isolated island. Buying Xero for accounting, Asana for projects, and Harvest for time tracking but never connecting them is the most common and costly error. This creates manual work and hides your true profitability.

Another major mistake is choosing software based on price alone. The cheapest accounting software might save you £20 a month but cost you £2,000 in manual reconciliation time and lost billing. Your creative agency finance software stack is an investment in your operational efficiency and commercial insight. View it as such.

Letting different teams choose their own tools without a central strategy leads to chaos. The design team uses one time tracker, the developers use another, and accounts use a third. None of them talk to Xero. This makes compiling a simple client invoice a day-long detective job.

Finally, a common error is not training the team. You can have the best app integrations in the world, but if your creatives don't log their time or update project statuses, the system breaks down. The software is only as good as the data you put into it. Make using the stack part of your agency's culture.

How can you measure the success of your finance software stack?

You measure success through time saved, cash flow improved, and insight gained. Key metrics include your invoice delivery time, debtor days (how long clients take to pay), and project margin accuracy. A successful stack makes these numbers better with less effort from you.

First, track administrative time. How many hours per week does your team spend on manual invoicing, chasing timesheets, and reconciling project budgets? After implementing a connected creative agency finance software stack, this time should drop significantly. Those hours can be redirected to client work or business development.

Second, monitor your cash conversion cycle. This is the time between you doing the work and getting paid for it. With automated time-tracking-to-invoicing, you can send invoices days or even weeks faster. Look for a reduction in your average debtor days. Getting paid 15 days quicker is a huge win for your cash flow.

Third, assess the quality of your commercial decisions. Can you now easily see which client or project type has the highest gross margin? Can you accurately forecast your cash flow for the next quarter based on live project data? A successful stack gives you this insight on demand, allowing you to steer the agency toward more profitable work.

Ultimately, the stack is successful if it becomes invisible. It works in the background, providing accurate data and automating tedious tasks, so you and your team can focus on the creative work that grows the business. If you're still constantly fighting with your software, it's not the right stack.

Building the right creative agency finance software stack is a strategic project, not just an IT task. It requires an understanding of both your creative workflow and your financial needs. The payoff is immense: less stress, better cash flow, and a clear picture of what drives your profit.

For many agencies, getting specialist advice saves time and prevents costly mistakes. Specialist accountants for creative agencies understand these unique challenges and can recommend proven combinations of tools and app integrations that work for businesses like yours.