In the dynamic, fast paced world of small firms, the challenges of big business loom just as large yet the resources to address them are significantly scarcer. It’s what makes having a good finance person that much more valuable.
It’s no secret that working in smaller firms means juggling multiple roles—and your finance person needs to be comfortable with that. But that doesn’t mean they should also be your office manager (even though we know that’s the case in plenty of firms—here’s why it shouldn’t be). What you really need is someone with an operations mindset. Someone who helps the business run more efficiently, supports smart decision-making, and drives growth. When that’s the case, finance stops being seen as overhead and starts being recognized for what it is: an investment in your agency’s future. A strong finance team isn’t just there for your comfort—they’re a strategic asset, especially if you’re aiming for a profitable exit down the line (and really, who isn’t?).
We believe every agency deserves the right finance team and that starts with knowing what to expect from them. This article explores what they should know about your business, the role they play with the rest of the team, and taking a realistic look at who is cut out for the realities of agency (finance) life.
Expectation 1: They Learn the Business of Agency
Ideally, your finance team (even if it’s a team of one) comes equipped with a background in professional services but recognizes they still need to get to know your business. If they don’t come from a background of professional service accounting, then they need to learn quickly. How you price. How you make money. How a retainer performs, vs a fixed fee job. Do you mark costs up? Why billing doesn’t equal revenue. What do you mean when you talk about “hard costs”. What EBITDA is possible for a well run professional service firm, etc.
Beyond the numbers, a good finance team will also learn about your operations. How your business is structured and why. What is the difference between Account Management and Project Management, a Graphic Designer vs. an Art Director. They will understand each of your engagements and they will design systems and reporting to capture the most relevant data and report it back to the leadership team in a way that is easy to understand and interpret.
A good finance team will also build relationships with the business. The business will see your finance team as an ally, ready to support them where they need it the most, vs. make it more difficult for them to do their already difficult jobs. They also become experts in identifying which team members are best suited to managing client financials and who will need more support to be successful.
All of this helps them deliver on a core function that elevates you to gamechanger status – their ability to present financial data that’s digestible and actionable in the language of the users who will benefit most from the information – and that’s not just the founders or most senior decision makers. High performing agencies know that finance is a team sport and when accounting and operational data is translated into meaningful insights, strategic decisions are made across the whole business.
Expectation 2: Finance Is a Service Department for the Agency
In the economics of agency life, time literally equals money. Admin tasks handled by billable team members creates costly inefficiencies and more opportunities for error—issues a skilled finance team understands and avoids. A single source of truth is the goal, not three versions, and there is high risk of duplication of efforts. Strong finance teams in small businesses immediately understand this. Taking the admin of finance out of the hands of billable team members enables these team members to spend more time being in front of clients. Win/win.
This type of service manifests in various practical ways. Let’s break it down:
- Tracking performance against estimates and updating BCR reports
- Basic job reconciliations (if the estimate is available, anyone can do this!)
- Proactively handling billing and invoice follow ups with clients – minimizing account team escalations to troubleshooting instances only
- Anticipating financial risk and protecting the business. For example, large influencer costs are expected but the client hasn’t even been billed yet. Let the train crash or work with the team to resolve these things before it becomes an issue?
- Understanding what the team really needs – even if it means reading between the lines of what they ask for
The ultimate test comes when the agency can trust the information provided by the finance team because it’s reliable, accurate, and timely. There is no second guessing, no risk of stifled decision making on account of finance, and key financial information is accessible within 30 minutes. Dreamstate? It shouldn’t be. For finance people who are proactive, service-oriented, know what they are doing, design systems and reporting to provide the most commonly required data, it’s a reasonable expectation. Good finance teams are not a cost – they return their salary back to the business several times by enabling the billable team members in the business to focus on growth.
Expectation 3 – You’re Looking for a Unicorn (But They Do Exist!)
Not only is the scope of the finance department wide in a small business (everyone wears lots of hats) but fit is extremely important. Finance professionals are typically risk-averse, uncomfortable making decisions without all the information, sometimes get too focussed on a reconciliation at the expense of missing the plot. We’ve all worked with someone like that and that is why it is really difficult to find commercially-minded accountants who are a good fit for agency life.
It’s not that agency accounting is overly complex, it’s just uniquely nuanced and not all accountants are cut out for this specialized environment.
It’s not just on them either. Are they building from scratch or are there well established systems and processes in place? They may have had agency experience before, they may even have demonstrated experience in doing everything we expect them to do – but will they? That skill often comes later in careers when they’re too senior to want to do the nitty gritty. And if they are eager and willing but not seasoned enough, they won’t know what good looks like. Some additional things to look for:
- A proactive problem-solving mentality – driven by excitement rather than fear
- Commercial mindset where they operate from a position of growth vs controllership. They know when to adapt and when to stand firm
- They build relationships across the business and they genuinely enjoy helping the team be good at managing the profitability of their jobs. They show empathy and emotional intelligence, contributing to a supportive workplace culture.
- Are confident in acknowledging gaps in understanding and know who in the business to go – even if they are the only one in their department.
Agency Finance is More than Bookkeeping
Agency finance isn’t just what happens between bookkeeping and tax season. It’s the engine behind your day-to-day operations, your strategic plans, and ultimately, your ability to grow with intention. Done right, it becomes one of the most valuable assets in your business.
The right finance team member – whether they are your in house finance professional, or your outsourced partner – shapes your culture as much as your bottom line. But that only happens when finance is elevated—when the role is respected, empowered, and integrated into the way the business runs. That’s how they grow into a true peer, not just a service provider. And it’s how you, as a founder, gain the confidence that when it’s time to step back or step out, you’ll be ready—and so will the business.
Fiscally takes a modern, advisory-led approach to empowering high-performing owner-operated firms to reach new levels of financial success. Specializing in end-to-end accounting, advisory and payroll solutions, we focus exclusively on the creative industry.
Say hello@thinkfiscally.com if you want to learn more about how we work with agencies, and subscribe here to stay informed on insights and updates on what’s to come as we build a collaborative community of business-savvy finance professionals and finance-forward agency leaders.
If you found this helpful, you may also be interested in:
Preparing Your Agency for a Profitable Exit
3 Reasons Why Your Office Manager Shouldn’t Be Your Bookkeeper
The Complete Financial Management Guide Every Creative Agency Leader Needs