Top 5 Financial Tools Every Agency Should Use

It's 10pm on a Tuesday. You've just wrapped up a killer pitch deck for tomorrow's meeting, but there's a nagging voice in your head about those unopened invoices and that mysterious bank reconciliation from last month. Sound familiar?

Your world isn't about neat quarterly reports and predictable cash flows. It's about juggling retainers, managing project scope creep, and somehow keeping enough cash in the bank to pay your growing team.

That's why I'm not here to lecture you about financial best practices. Instead, I want to share the actual financial tools that have transformed our clients' businesses. These are the ones that make you think "Where has this been all my life?"

After spending years helping agencies get their finances sorted, I've learned one thing: keeping things simple is key. So, I’ve narrowed it down to five essential financial tools. 

1. Xero‍

Working with growing agencies has taught me that flexibility is everything. Xero stands out because it adapts as your agency does. When you're handling multiple revenue streams, managing international clients, and scaling your team, you need a system that keeps up.

The beauty of Xero lies in its connectivity. Connect it with your business bank account (I typically recommend Monzo or Starling for UK agencies), and your transactions flow automatically into your books. 

This means:

• Real-time visibility into your cash position
• Automated reconciliation
• Fewer surprises at month-end.

Most agencies we work with start by using Xero for basic bookkeeping but quickly discover its power for strategic decision-making. The multi-currency functionality becomes really important as you take on international clients, and the reporting capabilities help you spot trends in your business before they become obvious.

2. Dext 

Let's talk about the reality of agency expenses - digital ad spend, software subscriptions, client entertainment, team expenses. Dext makes this organised and clear.

Here's what makes it powerful: Your team members can snap photos of receipts on their phones, forward digital invoices directly to Dext, and have everything automatically categorised and fed into Xero. 

The machine learning gets smarter over time, learning how your agency categorises different types of expenses.

For agency owners, this means:

• No more chasing receipts at tax time
• Clear visibility into project costs
• Accurately track client-related expenses. 

The time saved on admin can be redirected into client work and business development.

3. Fathom 

Fathom transforms your financial data into actionable insights. This is crucial because agencies often struggle to understand their true profitability across different service lines and clients.

The platform excels at tracking the metrics that matter for agencies such as:

• Utilisation rates
• Project profitability
• Client lifetime value
• Cash flow trends. 

You can even create custom KPI dashboards that align with your agency's specific goals and challenges.

What sets Fathom apart is its ability to help you spot patterns. You can see which types of projects consistently deliver the best margins, which clients might need a rate adjustment, and where you might be overservicing.

4. Float 

Dealing with irregular cash flow patterns can be a huge headache. Project deposits come in waves, retainer payments can be unpredictable, and you need to maintain enough runway to cover payroll and freelancers. This is exactly where Float becomes essential.

Beyond basic forecasting, it helps you model different scenarios.

• What happens if that big project gets delayed? 
• How many new hires can you sustainably bring on? 
• When should you invest in that new software?

The real power comes from connecting Float with your actual bank transactions and Xero data. Your forecasts update automatically as money moves in and out, giving you an always-current view of your financial future. 

This becomes particularly valuable when you're managing multiple projects with different payment schedules and need to ensure you've always got enough cash for operations.

5. Slack & Accounting Integrations 

Financial management in agencies isn't just about the numbers - it's about communication and collaboration. We've found that integrating financial tools with Slack transforms how teams interact with financial data and decisions.

By connecting your accounting tools to Slack, you create a central hub where your team can:

• Get instant notifications when clients pay invoices
• Request and approve expenses without leaving their workflow
• Stay updated on important financial deadlines
• Access quick financial reports and updates

The key is setting up the right channels and notifications. You don't want to overwhelm your team with financial alerts, but you do want to keep everyone informed about the metrics that affect their work. 

For instance, project managers can get updates about budget utilisation, while department heads can track their team's expenses.

Integration Is Everything 

Here's what makes these tools truly powerful: they work together. Dext feeds into Xero, which connects to Fathom for analysis and Float for forecasting, while Slack ties everything together with real-time updates. This integration creates a financial ecosystem that grows with your agency.

When choosing your tech stack, think about how each tool connects with the others. The goal isn't just to automate tasks - it's to create a clear financial picture that helps you make better decisions about your agency's future.

Remember, implementing these financial tools takes time and patience. Start with one, get it working well, then gradually add others. The investment in setting them up properly pays off in better financial visibility and control over your agency's growth.

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Making It All Work

At the end of the day, these tools are just part of running a smarter agency. They won't magically fix everything, but they'll give you the clarity you need to make better decisions. 

Start small, perhaps with basic Xero setup and expense management through Dext. As your team gets comfortable, layer in more sophisticated tools like Fathom for deeper insights or Float for cash flow planning.

Remember that the goal isn't to have the most sophisticated tech stack - it's to have one that works for your agency's unique needs. That's worth a bit of initial setup time, don't you think?

Take that first step. Pick one area of financial management that's causing you the most stress, and start there. 

Your agency will thank you.

Ready to Transform Your Agency's Financial Management?

Stop spending late nights wrestling with financial admin. At Sidekick Accounting, we don't just recommend these tools – we help agencies like yours implement and optimize them as part of a comprehensive financial strategy.

Want to see how these tools could work for your agency? 

→ Click here to schedule your strategy session

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