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Marketing agencies

How can a marketing agency optimize its cash flow management?

Marketing agencies face challenges when it comes to cash flow management. Discover how cash flow management software such as Fygr can help meet these needs.
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Marketing agency: key points to remember about cash flow management

Cash flow management is a major strategic challenge for marketing agencies, whose business model is based on labor-intensive projects and inherently unstable revenues. Cash flow pressures are not linked to a lack of activity, but to a structural misalignment between fixed costs, project cycles, and cash inflows:
Highly volatile revenues linked to key projects and client budgets
Investment/invoicing gap with creative time committed upstream
High fixed costs (wage bill accounts for 70-80% of costs)
Limited financial visibility on the impact of upcoming projects
Fygr enables marketing agencies to proactively manage their cash flow by linking projects, resources, and financial flows to secure growth.

The specific cash flow challenges for marketing agencies

Why is cash flow management particularly difficult for a marketing agency?
Volatile income
Structural gap: investment vs. billing
High fixed costs VS variable income

Highly volatile income

Marketing agencies experience particularly unstable revenue cycles, directly linked to their clients' changing marketing strategies.

A single project can account for 30% of annual revenue and then suddenly disappear, creating constant pressure on cash flow.

This volatility can be explained by dependence on seasonal campaigns, fluctuating marketing budgets, and intense competition that pushes clients to constantly renegotiate their contracts.

Structural gap between investment and billing

Marketing agencies must invest heavily in creative and technological skills before even starting a project.

Teams devote many hours to conception, design, and strategy with no guarantee of immediate billing.

This business model creates a constant need for pre-financing, where the agency bears the entire initial cost while billing will occur several weeks or months later.

Why do fixed costs account for up to 80% of revenue?

Marketing agencies have three structurally unavoidable cost items:

Human resources: highly qualified creative talent, certified marketing strategists, developers, and data analysts.

Technological infrastructure: monthly software licenses, hosting and servers, cybersecurity, and backups.

Fixed operating costs: premium office space, high-tech equipment, telecom and office subscriptions.
BEST PRACTICES

Best practices for cash management in a marketing agency

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Segmentation and profitability analysis by project

The financial management of a marketing agency relies on a deep understanding of the economic performance of each assignment. It is crucial to develop a precise methodology for tracking costs and revenues per project, integrating all the human, technological, and operational resources mobilized. This approach makes it possible to quickly distinguish between strategic and highly profitable assignments and projects that unnecessarily drain the company's resources. By carefully analyzing each campaign, the agency can adjust its pricing, redirect its teams to the most rewarding projects, and build a truly data-driven commercial strategy.

Dynamic human resources management

Cash management in a marketing agency must place human resources at the heart of its financial strategy. With teams accounting for 70 to 80% of costs, their allocation becomes a major strategic issue. It is essential to develop a forward-looking vision of the skills required, anticipating slow periods and peaks in activity. This involves building a flexible approach to recruitment, combining permanent contracts, freelancers, and external service providers, while maintaining the ability to adapt quickly to market fluctuations. This agility makes it possible to maintain an optimal cash flow level while ensuring the agency's responsiveness.

Payment terms management strategy

Controlling cash flow in a marketing agency requires a proactive approach to invoicing and collections. It is essential to implement strict payment tracking processes, with clear contracts that clearly define payment terms and penalties for late payments. Negotiating significant deposits at the start of a project reduces financial risk and secures cash flow. At the same time, it is becoming strategic to develop an appropriate collection policy that combines firmness with maintaining customer relations in order to minimize late payments and optimize collection times.

"What I felt about the Fygr team was that they weren't there to sell us a tool, but to help us. I really appreciated that approach."

Read the testimonial
Mariya Vasyuk
Director, Colibrity Agency
CHOOSE FYGR

Why use Fygr for a marketing agency?

The best solution for implementing these best practices and addressing all of these issues is to use cash management software such as Fygr. Let's take a look at how Fygr can help boost your marketing agency's cash management.
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GOOD REASON #1

Automatic bank synchronization

Track your cash receipts, categorize your income and anticipate your cash flows effortlessly
Real-time monitoring of recurring vs. one-off collections
Automatic categorization by contract/customer type
Anticipation of cash flows linked to contractual maturities and renegotiations
GOOD REASON #2

Cash flow forecasts

Project your financial performance with accurate simulations
Cash flow forecasts
Anticipating periods of cash flow tension specific to marketing cycles
Modeling growth and recruitment scenarios
GOOD REASON #3

Comparative analysis forecast/actual

Continuously optimize your agency's economic performance
Dynamic comparison between forecast and actual
Adapt quickly and make the decisions that matter
Continuous optimization of resource allocation

They chose Fygr

Here's what some of our customers have to say after choosing Fygr to visualize their financial data:
I wanted to congratulate the customer support team, who are really helpful, and it's definitely nice not to have to ask questions to a chatbot, especially on a subject as sensitive as cash flow management!
The tool is great, both visually and in terms of functionality. It's kind of what I've been waiting for for a while to get a clear picture.
Romain Jouannaud
Founder @ Crush Agency
Many thanks to Julie at FYGR for her patience during our discussions about how to use the tool! We are receiving excellent support, thank you!
Sochanda Pich
CEO @ MyArtistPlace
Top services, my advisor is kind and helpful, I recommend her. The software is very comprehensive.
Christian Chapolard
Managing Partner @ Human Partners
FAQ

Everything you need to know about cash management for marketing agencies

Answers to the questions you ask us most often.
How to choose cash management software for a marketing agency?
To choose the right software, start by analyzing your specific needs: volume of marketing projects, number of employees, complexity of tasks. Opt for a solution that offers visibility into project profitability, human resources management, and variable income projections. Fygr may be particularly well-suited to marketing agencies thanks to its industry-specific features.
What are the advantages of cash management software over Excel for a marketing agency?
Cash management software offers complete automation of processes specific to marketing agencies. Unlike Excel, it allows you to track the profitability of each assignment in real time, view resource allocation, and accurately project skill requirements. The dashboards are dynamic, banking data is automatically synchronized, and time and project management is simplified. It is a strategic tool that goes beyond a simple spreadsheet.
How to make reliable cash flow forecasts for a marketing agency?
For accurate forecasts, collect historical data for at least 12 months, taking into account marketing seasonality. Analyze your project cycles, customer payment terms, and revenue variability. Include all recurring costs (salaries, equipment, software), and project predictable income based on your customer portfolio and current sales proposals. Use multiple scenarios that reflect the dynamic nature of the marketing industry.
How long does it take to implement cash management software for a marketing agency?
Setup time varies depending on the complexity of your agency, generally ranging from a few hours to a few weeks. The time required depends on the number of projects, clients, and tools to be integrated. Fygr is designed to quickly adapt to the specific needs of marketing agencies, seamlessly synchronizing your project management tools and banking data.
How much does cash management software cost for a marketing agency?
At Fygr, prices start at €59 per entity and per bank account, with options tailored to the size and complexity of marketing agencies. The price should be considered a strategic investment that optimizes profitability, improves resource management, and minimizes financial risk.
Who are Fygr's competitors for marketing agencies, and which one should you choose?
Agicap remains a major competitor, but is often considered less suited to specific marketing needs. Fygr is particularly recommended for agencies with 5 to 200 employees, offering a more intuitive approach and more competitive pricing.
How do I know if my marketing agency needs cash flow management software?
Your agency needs this kind of tool if you are having difficulty forecasting your cash flow, accurately measuring project profitability, or if you are experiencing significant growth. The signs are: lack of visibility on cash inflows, significant time spent on Excel, difficulty allocating resources efficiently. This is particularly relevant if your annual revenue exceeds €500K.