What cash reserve does Mike Andes recommend keeping in the bank?

Mike AndesFounder, Augusta Lawn Care and Homeworks · Founder of Homeworks and Augusta Lawn Care

How Much Cash Should You Keep in the Bank?

13 Jun 2025 · 0 min

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0:09

A brief conversational excerpt from a YouTube video where Speaker B asks about how much cash (liquidity) a business should hold. Mike Andes advises keeping at least one month of average revenue in the bank (calculated as the average of the last three months), and taking any amount above that as distributions.

Questions this video answers

At least one month of revenue, calculated as the average revenue over the last three months; any amount above that is taken as distributions.

Is there, like, a certain amount, a percentage of revenue that I should see in liquidity? I just don't know what I guess is normal or healthy in terms of cash flow and how much I should have in the bank.
Yeah. So for me, personally, I'm trying to get at least one month of revenue in the bank account. We're looking at that last three months. So if I did 40,000, 50,000, 60,000 in revenue in the last three months, the average of the past three months is 50,000. Anything above $50,000 in the bank I will take as distributions.
Okay.
And the reason that's helpful because down the road, if you do profit sharing with your team or general manager or anything like that, you've already set this, like, dollar amount that must be in the bank, and anything above that we can split with the team.