The client
Most agency founders reach a point where accounting becomes more complex. As revenue shoots up, the team grows, and decisions carry more weight, it becomes more important to understand the numbers and use that insight wisely.
Bloxspring reached that point faster than most agencies. This B2B communications specialist works with clients in industries such as property, proptech and climate innovation. Launched in 2020, they tapped into the needs of the built world, which was increasingly under pressure to explain itself on net zero, retrofit and the future of the workplace. As a result, they scaled quickly, accumulating clients across the UK and the US.
The challenge
Bloxspring’s previous accountant ran everything through a basic in-house platform. This was ideal to begin with, and compliance was always handled well.
But as things started to take off, the founders had no reliable take on how the agency was actually performing. Cash flow was based on educated guesses rather than hard figures. Decisions on hiring, pricing and investment were being made on instinct and a glance at the bank balance.
For a business growing at the speed Bloxspring was, that posed a genuine risk. At Barnridge, we regularly see agencies making decisions based on a healthy-looking bank balance but without knowing the full picture. The figure suggests the agency is doing well, but in reality, a good portion of it is VAT and tax waiting to be paid. One late payment or lost client can put cash flow under serious pressure, especially with a growing payroll.
The gap was more than just reporting. Bloxspring needed an experienced accountant who understood how an agency makes money: the delay between winning work and being paid, the effect of a large one-off job, and how scope creep erodes margins.
Fortunately, the accounts were accurate, but the founders needed a better steer. It was time to stop looking at the money coming in and year-end figures, and start looking ahead to make safer, more profitable decisions.
Our solutions
At Barnridge, one of our main strengths is our understanding of how agencies work. We were able to hit the ground running with little disruption to Bloxspring’s day-to-day operations.
We quickly put the following solutions in place:
Moving to Xero for a clear, live view
We migrated their accounts to Xero straight away. For the first time, the founders could see income, costs, and outstanding invoices in real time, not after the event. This was more than just tidying the books. It showed where the cash was sitting in the business and where it was getting stuck.
Monthly management information
Bloxspring now receives monthly management reports that go beyond the headline figures to show how the agency is really performing. They have a clear view of profitability, margin stability and how costs are tracking against income. These regular insights give them a chance to plan for foreseeable issues ahead of time, rather than just reacting.
Forecasting that looks forward
Financial forecasting provides a forward view of cash, revenue and costs. This means they can see the likely effect of a new hire or new service offering before committing to it.
FD-level support
Barnridge is not just an end-of-year accountant. Every month we meet with Bloxspring to discuss the numbers, what they mean and how they affect upcoming decisions. Acting as their outsourced FD, we also get into pricing strategy, hiring and profitability by client.
Tighter credit control and smarter VAT
With cash flow more clearly visible, we tightened up the agency’s credit control procedures to help shorten the gap between invoicing and payment. We also advised that they move to cash accounting for VAT, so that they only paid what was due to HMRC once their clients had actually paid them.
The result
Bloxspring was an early client for Barnridge, and we’ve been delighted to support them from a crucial stage of growth through to the established, profitable agency they are today.
The biggest impact we have had is on the way decisions are made. Pricing conversations are now based on real numbers, and hiring on forecasts rather than what the bank balance says. And with the changes we made to VAT and credit control, more working capital is available to help drive the business forward.
From the client
“Michael has really helped transform the way we handle finances and use data to make better, more informed decisions. He’s meticulous, professional and insightful. Highly recommended!”
