Episode Summary
In this episode, Russel sits down with Sarah Patterson, a fractional CFO who has spent more than 15 years working exclusively with marketing agencies and consulting firms. Sarah shares a practical, no-nonsense approach to agency finance, one that replaces anxiety and guesswork with structure, visibility, and confidence.
Rather than focusing on complex spreadsheets or accounting jargon, this conversation centers on how agency owners can actually use financial data to guide decisions, prepare for change, and protect both the business and their own energy.
Episode Highlights
- The three roles every agency finance function needs and why most agencies only cover two
- How to review financial statements without needing a finance degree
- Why budgeting is less about being “right” and more about alignment
- The difference between looking backward at reports and forward with intention
- How pipeline data can reveal future risk long before revenue drops
Agency Info
-
Company: Essjay
-
Guest: Sarah Patterson
-
Year Started: 2011
-
Employees: 1-10
All decisions have a financial impact.
Sarah Patterson
Key Takeaways
Financial clarity creates confident leadership
Many agency owners aren’t making decisions with reliable financial visibility. This episode shows that when you build a few consistent financial habits, the numbers stop feeling intimidating and start becoming a tool for direction, focus, and better decision-making.
The 7 Financial Habits That Create Clarity
1. Review financial statements consistently
Regularly reviewing your profit and loss statement, balance sheet, and cash flow statement builds fluency. When you understand how these reports connect, surprises become far less common.
2. Build a thoughtful annual budget
Budgeting isn’t about predicting perfectly—it’s about aligning revenue goals, staffing plans, and expenses so the business is pulling in the same direction.
3. Track budget vs. actual every month
Comparing what you planned to what actually happened highlights issues early and keeps leadership grounded in reality instead of assumptions.
4. Create a rolling forecast
A monthly forecast helps you look forward, not just backward. It allows you to anticipate changes in revenue, staffing, and cash before they become urgent problems.
5. Compare your forecast to your original plan
Seeing how the year is shaping up against your original goals gives you a clear signal on whether course corrections are needed—and how big they should be.
6. Measure your sales pipeline, not just closed deals
Pipeline activity tells you what revenue is likely to look like months from now. Tracking deal size, probability, and timing creates more reliable expectations.
7. Focus on a small set of meaningful KPIs
A handful of well-chosen metrics—such as revenue per employee, client concentration, and client-level profitability—reveals what’s truly driving performance.
Enjoy this Episode?
Subscribe to An Agency Story on your favorite podcast app for more real stories from agency owners. Loved what you heard? Leave a review or share this episode with someone building their agency from the ground up.
