Cash Reserves for Your Marketing Agency

Marketing agencies that innovate typically experience high demand. However, unexpected expenses can stifle plans for growth. Do you have enough cash in your business?

About the Cash Reserves Calculator

Plainly put, every business should set aside cash reserves to fund growth and for the "Can you sleep at night?" factor. Cash reserves help pay for unexpected costs that occur throughout the year, and they're often kept in your business account.

The standard response many financial experts provide is a dollar amount that covers  up to 6 months of expenses. Obviously, every marketing agency is different. The first step is to look at your finances — including fixed expenses, accounts receivable, revenue growth, sales pipeline, client diversification, etc.

The calculator asks for the amount of your fixed business expenses. Then, it will take you through a series of questions that gauge the financial health of your marketing agency, based on a scale from 1 to 5. Once you fill out the form, you will receive an email that will estimate how many months of cash reserves and how much cash reserves you should have. If you have any questions, shoot me an email at [email protected]. I'm happy to walk you through it.

If the cash reserve calculator indicates that you don't have enough, the next step is to increase the amount of cash reserves. How?

  1. The easy way is to increase sales, find new customer and charge higher prices.
  2. Another method is to examine your profit and loss statement. Find unnecessary expenses. Digital marketing agencies, in particular, typically have multiple software subscriptions that aren't bringing value to the business.

This means you have some money to work with. Now, it's time to do something with your cash.

  1. Pay yourself.
  2. Fund growth in the business.
  3. Take the money out and invest it.

If there's too much cash in the business, it will slow down your growth and it won't benefit you or your agency.

Chris Hervochon Outsourced Accounting

Contact Chris Hervochon , CPA, CVA today!

Have plans for growth?
Contact me today at [email protected].


Try the Cash Reserves Calculator

The cash reserves calculator is meant to provide an amount of cash reserves you should keep in your business. If the number from the calculator is higher than what you currently have in your business, then start building your cash reserves!


To provide an estimate, we need more information.

We take data privacy and protection seriously, taking all necessary precautions with your information.

Let's keep the conversation going!

Join my Facebook group for marketing and creative professionals — who share the same struggles as many business owners in the service industry: managing time between projects, communicating value to clients and suffering cash flow bottlenecks.

Scroll to Top