Mid-Year Financial Checkup: A Smart Move for Small Business Owners

Written by Precise CFO | Jun 9, 2025 6:18:27 PM

As we’re nearing halfway through the year, now is the perfect time to hit pause and take a clear-eyed look at your finances. Whether you're having a strong year or things feel a little off-track, a mid-year checkup gives you the insight to course-correct before December sneaks up.

1. Review Year-to-Date Financials

Start with your profit and loss statement and balance sheet. Are revenues where you expected them to be? Are your expenses trending higher than planned? You’re not just looking for big problems, you’re looking for small leaks that can become major issues.

Ask yourself:

  • Am I on track to hit my revenue goals?

  • Are profit margins consistent (or slipping)?

  • Have any expenses crept up unexpectedly?

2. Check Your Cash Flow Health

Profitability and cash flow are not the same. Even if you’re making money on paper, cash might still be tight. Look at your cash flow statement or your bank balance trends.

Quick check:

  • Do you have enough cash to cover  2–3 months of expenses?

  • Are customers paying on time?

  • Are there opportunities to improve collections or payment terms?

3. Revisit Your Budget and Forecast

If you made a budget in January, now’s the time to revisit it. Business environments shift, your plan should, too.

Update your forecast with real numbers:

  • Adjust revenue projections if needed

  • Reallocate spending if priorities have changed

  • Plan for any seasonal slowdowns or surges

4. Look at Your Tax Position

Don’t wait until year-end to think about taxes. A mid-year check-in can help you avoid surprises and take advantage of planning opportunities, saving you $$$.

Ask your accountant or tax advisor:

  • Am I on track with estimated tax payments?

  • Are there deductions or credits I should plan for now?

  • Should I consider adjusting my salary, distributions, or retirement contributions?

5. Evaluate Operational Efficiency

This is a good time to step back and assess: is your business running efficiently? It doesn’t require a full audit, just an honest look at what’s working and what’s draining time or money.

Look for red flags:

  • Too much time spent on manual tasks (especially admin or invoicing)

  • Underused software or overlapping subscriptions

  • Vendors or contractors not delivering enough value

6. Check In On Your Goals

Finally, tie all of this back to your bigger business goals. Whether it's growth, more time freedom, or better margins, how are you tracking?

If goals have shifted, that’s okay. The point is to stay intentional.

Your Mid-Year Financial Checkup To-Do List:

Pull year-to-date financial reports
Review actuals vs. budget
Analyze cash flow trends
Confirm tax payment status
Identify 1–2 cost-saving or efficiency wins
Reconnect with your big-picture goals

Doing a mid-year checkup doesn’t need to be overwhelming. Think of it as your financial tune-up, helping your business run smoother, faster, and more profitably for the rest of the year.

If you have any questions or wish to discuss your business finances, tax planning or bookkeeping.

Book a FREE discovery call today! Contact Us