Assess Current Finances : Step #2 of The Financial Operating System for Marketing Agencies

Before you build a financially strong agency, you need to understand where your business stands today. That’s the goal of Step 2 in the Financial Operating System for Marketing Agencies: assess current finances clearly and objectively.

Start by evaluating your balance sheet. It shows what your agency owns, what it owes, and how much equity you’ve built. In other words, it reflects your agency’s financial health at a specific point in time.

Next, review your income statement and cash flow statement. These two reports help you assess recent financial performance. The income statement shows whether you’re operating at a profit or loss. The cash flow statement reveals how well you manage the money coming in and going out.

Together, these three reports help you answer key questions. Are we profitable? Are we managing expenses? Is our growth sustainable?

If these terms feel unfamiliar, it’s a good time to revisit financial basics. As an agency owner, understanding your numbers gives you a strategic edge—not just financial clarity.

Once you assess current finances, compare what you find to the goals you defined in Step 1. Are you making progress? Or are there gaps between your current results and long-term vision?

This step will help you find those gaps and decide where to focus next. Maybe your cash flow is solid, but margins are thin. Or maybe your debt is growing faster than revenue. Knowing what to fix starts here.

Assessing your financial health isn’t just a step—it’s a habit. The more consistently you do it, the more confident your decisions will become.

📘 Download the excerpt below to learn how to assess current finances for marketing agencies and build a more informed, profitable path forward.