Why do agencies go over budget so often?
Creative work jumps from client to client. A banner in five sizes, copy that needs to be just a bit different, a client who calls for a moment. Each piece is small, and those pieces vanish from your hours and from your margin.
The biggest leak is usually revisions. The third round of feedback takes twenty minutes, so does the fourth. Together it's half a day that was never in the quote. Without tracking, you only notice when the project is already losing money.
A project is on budget until the revisions come. If you track each round, you see that moment coming and can discuss it with the client.
How do you structure clients, projects and activities?
For each client, create a project per campaign, website or job, with a budget in hours that matches the quote. For a retainer, a project per month or quarter works well, with the agreed hours as its budget. That shows per period whether the retainer fits.
Activities describe the type of work: concept, design, copy, development, campaign management, meetings, revisions, extra work. Keep the list short and the same for every client, or you can't compare projects.
| Level | Example | Used for |
|---|---|---|
| Client | Baker's Bikes | Invoicing and overview per client |
| Project | Spring campaign 2026 (60 h), Retainer Oct 2026 (16 h) | Budget per job or period |
| Activity | Concept, Design, Copy, Meetings, Revisions, Extra work | Where time goes, rate, billable |
Which billing models are there, and what do they mean for your hours?
Agencies usually combine a few models. You record the hours in every model, but they play a different role: as invoice lines, or as a check on whether the price holds. More on that distinction in Billable hours.
| Model | How it works | What the hours do |
|---|---|---|
| Hourly | You invoice the hours worked | Become invoice lines |
| Fixed project price | Agreed amount for a defined job | Show whether the price holds; extra work separate |
| Retainer | Fixed monthly amount for a number of hours or tasks | Show whether the retainer fits the work |
How do you keep revision rounds and scope creep visible?
Agree in the quote how many revision rounds are included, two for example. Log each round on the ‘Revisions’ activity. The report then shows how much time they really take, and you have a factual conversation when round four arrives.
Work outside the agreed scope goes on a separate, billable ‘Extra work’ activity. That keeps the project budget clean and the extra work ready to invoice, provided the client agreed to it up front.
- Put the budget in hours and the number of revision rounds in the quote.
- Set that budget on the project.
- Log revisions and extra work on their own activity.
- Check every week how much of the budget is used.
- When the budget nears its limit, talk to the client before carrying on.
Do calls and meetings count too?
Yes. A kick-off, a feedback call or a quick check-in with the client is work on that project. Short calls in particular get lost, because they sit between two other jobs.
Log meetings on a ‘Meetings’ activity under the right project. Whether you bill them depends on your agreement: usually yes with hourly billing, while with a fixed price they're part of the budget. Internal meetings go on your own agency as a client, non-billable.
What should you watch out for?
Agencies tend to run into the same things:
- Checking the budget only at invoice time. By then it's too late to steer. Check weekly.
- Everything on one ‘Design’ activity. Then you never see how much time goes to revisions or meetings.
- Extra work without agreement. It's hard to invoice if the client didn't know about it beforehand.
- Using hours to monitor people. Hours are for steering projects and prices. The difference is explained in Productivity without surveillance.
How Half5 does it
In Half5 every project belongs to one client and can have a budget in hours. The project shows the budgeted hours, the share of the budget used, registered hours and the billable amount, and a percentage over budget when you exceed it. The project health report puts projects side by side. You create activities such as ‘Revisions’ or ‘Extra work’ yourself, set them to ‘Billable’ or ‘Non-billable’ and optionally give them their own rate. Budgets are in hours only, not in money.
The timeline keeps track of your day on your own device (programs and windows, websites through the browser extension, meetings from your connected Google or Outlook calendar) and prepares ‘Suggestions’. Your agency only sees the hours you register.
Approved hours become draft invoices for Moneybird, WeFact or Exact Online through ‘Create draft invoices from report’; with e-Boekhouden you finish the invoice there. Draft invoices are built from hours; a fixed retainer fee you invoice from your accounting software.
Frequently asked questions
How do you track time for a retainer?
Create a project per month or quarter with the agreed hours as its budget. Then you can see per period whether the work fits the retainer.
Should revision rounds be tracked separately?
Yes, on their own activity. Only then can you see what they cost and back up a conversation about a fourth or fifth round.
What do you do with work outside the quote?
Agree it with the client first and log it on a separate billable activity. The project budget stays clean and you can invoice the extra work.
How often should you check the budget?
Weekly is a good habit. On short, busy projects more often, so you can steer before the budget runs out.
Do internal brainstorms count?
If they're for a client project, log them there. General internal sessions go on your own agency as a client, non-billable.
