Mid-Year Financial Checkup - 7 Things Every Business Owner Should Review
As we hit the halfway mark in the year, it’s the perfect time to pause, take a breath, and check in on the financial health of your business.
Just like your car needs a regular oil change, your business needs periodic financial maintenance to keep running smoothly.
Here’s a simple but powerful mid-year financial checkup you can use to stay on track, make better decisions, and prepare for a strong second half of the year.
7 Steps to Conduct a Small Business Financial Review
1. Review Your Profit & Loss Statement
Take a close look at your income and expenses so far this year. Are you where you expected to be? Identify:
Top-performing services or products
Expenses that have crept up unexpectedly
Areas where you could cut back or reallocate resources
This is also a great time to compare your actuals against your budget (if you have one—if not, now’s a good time to create one!).
2. Check Your Cash Flow
Profit doesn’t always equal cash. Many service-based businesses experience cash flow crunches even when they’re technically profitable. Look at:
Your monthly inflows and outflows
Any upcoming large payments or seasonal lulls
Whether your receivables (outstanding invoices) are being collected on time
Tip: If you often wait on client payments, consider adjusting your payment terms or using automated invoicing tools.
3. Reconcile Your Bank & Credit Card Accounts
It may sound basic, but many business owners overlook this crucial aspect. Ensure that your bank and credit card accounts are reconciled to maintain accurate bookkeeping. This helps:
Catch duplicate charges or fraudulent activity
Ensure all transactions are categorized properly
Avoid headaches during tax season
4. Assess Your Tax Payments
Have you set aside enough for taxes? If you pay quarterly estimates, double-check that your payments align with your earnings. If you’ve had a growth spurt or added revenue streams, you may need to adjust your estimated tax payments now to avoid surprises later.
5. Evaluate Your Pricing
Are you still charging what your services are worth? Mid-year is a great time to:
Revisit your pricing strategy
Compare with industry benchmarks
Factor in inflation, increased costs, or enhanced value
Even a small pricing adjustment can dramatically improve profitability.
6. Check In On Your Business Goals
Did you set financial goals at the beginning of the year? Now’s the time to:
Celebrate what’s working
Recalibrate goals that are off course
Set new targets for Q3 and Q4
Financial clarity helps you make confident, data-backed decisions going forward.
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7. Meet With Your Bookkeeper or Accountant
A mid-year review with your financial professional can uncover hidden opportunities and red flags. They can help:
Interpret reports
Identify tax-saving strategies
Streamline your systems for efficiency
If you don’t have a bookkeeper, this is your sign to hire one. You don’t have to do it all alone.
A mid-year financial checkup is more than just a business chore—it’s a chance to step into your role as CEO, take control of your money, and make the second half of the year your strongest yet.
