As a pre-created reserve, financial reserves can be created in case of future larger expenditures, at the expense of financial reserves, and future current expenditures can be written off. Reserve funds are typically created by government agencies for future financing of unforeseen expenditures, liquidation of certain consequences, reduction of negative economic effects of financial crises, and other unforeseen circumstances that arise. Financial plans rarely account for these expenses.

There are several types of financial reserves, depending on the role and
place of financial relations:
• Gold coin,
• Revenues,
• Ministries and departments funds,
• Insurance.

Financial reserves can be thought of as holding money in reserve so that current expenditures do not deplete the financial resources of the company. When an emergency arises, emergency funds are there to provide support when necessary. The amount that should be set-aside for this purpose varies by industry; however, experts recommend that companies hold at least three months worth of cash flow. Additionally, experts suggest that organizations create a written business continuity plan in case of emergencies like natural disasters or terrorist attacks.