Accounting at an ad agency

Yogesh Chandra (Business) (50 Points)

29 January 2021  

 I am starting a new digital marketing agency which will get money from clients for taking out online ads in their name. 

The money clients pay us for taking out ads is separate from what we bill them for our service charges. Obviously, the ad spend amount cannot be counted as our revenue. Our service charges are our revenue. 

How should we account for the ad spend money received? 

Though this question is in the accounts category, Any additional information about how to handle the tax/filing aspect will also be much appreciated.