5 Easy Steps for Business Owners to Conduct A Mid-Year Financial Checkup

We’re smack dab in the middle of summer and halfway through the calendar year. That means it’s time to take the temp on your business and assess its current health. If you’re not in the habit of conducting a mid-year financial checkup then you’re in the right place!

Knowing exactly what happened in your business in the first half of the year will direct the actions you take in the second half of the year. A financial checkup will help you accomplish this. I advise my clients and students to get into this habit when they first start their business. A review of where you’ve been is vital because it shows you where you’re going (intentionally or unintentionally).

But even if you’re a few years into your entrepreneurial journey and have never done a mid-year review, it’s never too late to start this imperative habit. 

Why It’s Important to Do A Mid-Year Financial Checkup

You probably started the year off with the best intentions for your business. As a responsible business owner, you set your goals when the new year rolled around. Maybe you wanted to hit $25k in revenue per month. Or perhaps you set your sights on expanding the services you offer.

A mid-year financial checkup is the best way to evaluate whether or not you are on target to hit your goals. And if you’re not, then it’s a good time to course correct. It’s the perfect time to pivot if you’ve gotten off track. However, to point yourself back in the right direction, you have to know where you’re currently standing.

Schedule and commit to spending uninterrupted time this week to review where you’re at in your business. No distractions allowed! Maybe it’s an evening after work with your laptop, a glass of pinot, and a soothing playlist in the background. Your mid-year review doesn’t have to feel like a chore. 

5 Steps to A Well-Rounded Financial Checkup

You give so much of yourself to your business. You pour time, energy, and passion into it and this is a chance to evaluate what’s working and what isn’t. The more you commit to this exercise, the more likely you are to accomplish your goals at the end of the year.

1. Check-In With Yourself

First and foremost, how are you feeling about your business at the mid-year mark? Ask yourself these self-reflection questions to get a feel for how things are going. 

• What feels good? Are you still as passionate about your work as you were on day 1? Are you still excited to get to work each day? 

• What doesn’t feel good? Are certain menial tasks taking up too much of your day? Are you stressed about certain areas of your business? Do you wish you had the means to hire help? 

Most of us start our businesses because we want more of something. Whether it’s more freedom, more money, or to make more of an impact on the world around us, there’s always a reason. 

Do you feel like you’re on your way to achieving whatever it was you originally set out to achieve? If not, then this exercise is more important than ever. This is a great time to get clear on whether you’re running your business or your business is running you.

2. Revisit Your Budget

The budget you created at the beginning of the year should be revisited several times per year. The mid-year check-in provides a perfect budget review opportunity. Take a look at what you forecasted for the year in terms of revenue and expenses.

If you realize your expenses have slipped away from you, it’s time to trim the fat. Unnecessary spending can happen quickly. Conducting your mid-year financial checkup gives you the chance to catch it and clean up shop. If you set savings goals to make any upgrades or invest in your business, this is an excellent time to see what money you have available for those investments. 

3. Review Your Financial Statements

Pull your financial reports from the beginning of the year through June 30th. Profit and loss statements, balance sheets, and cash flow statements are standard financial documents to review during a financial checkup. These will show you if your books have been kept in good order. 

If you spot any irregularities within those six months then take a closer look to identify what happened. Some of my clients also pull their financials from the mid-year point last year. Compare your financials right now to your financials from this time last year. This is how you spot trends and cycles that can assist you in making wiser decisions as a business owner.

4. Evaluate Your Goal Progression

Remember those goals you set for your business at the start of the year? It’s time to see where you’re at in meeting them. Whether you set concrete financial milestones or identified systems and processes you wanted to employ, take some time to see if you’ve made meaningful strides toward getting there.

Remember though, we’re only halfway through the year. If you’ve achieved what you set out to already, then congratulations! If you still have some work to do, that’s okay. 

Maybe you wanted to shift from being a solopreneur to building a team. If, while conducting your financial checkup, you realize you’ve got the budget for some help, then start taking strides to hire. Maybe it’s as simple as creating a social media post letting your followers know you’re looking for a virtual assistant. Taking that one small action could set the whole process in motion.

5. Check In On Your Taxes

Let’s be real, nobody likes taxes. And it’s not just paying them that’s painful, it’s the entire process. For that reason, a lot of small business owners and entrepreneurs put it off, which is a mistake. You should have made two quarterly estimated tax payments at this point in the year. 

This is a good time to make adjustments to your 3rd and 4th quarter estimated payments if you’re forecasting an increase in revenue for the second half of the year.

If you haven’t made your estimated tax payments then it might be worth scheduling an appointment with your tax professional. Putting off making tax payments causes unnecessary stress. This is one problem business owners can easily solve by calling on professionals to get it done. Attending to taxes all year long can make for an easier, less stressful spring. 

What’s Your Takeaway From Your Financial Checkup?

Now that you’ve taken the time to evaluate your business at the mid-year mark, what have you learned? You should have clarity about what’s working and what isn’t. With that insight, you can take informed action that aligns with your goals. Write down specific action items for the remainder of the year and prioritize setting them in motion over the next month.

Maybe you found that your business is in better shape than you expected. Pop the bubbly and commence the happy dance! In other words, always take the time to celebrate your wins. In the constant hustle of building, improving, and tracking all of the things associated with your business, it’s easy to forget to do that. 

Heck, even creating the habit of running regular financial reviews is well worth a celebration.  

Conducting your mid-year financial checkup puts you in a better position than most small business owners. Keeping your objectives top of mind and knowing your numbers positions you for success. But objectives and numbers shift. Regular financial checkups keep you in the driver's seat. And that’s where every entrepreneur wants to be.  

Keep Your Business on Track With Financial Coaching

Building good habits as an entrepreneur, like running a mid-year financial checkup, is critical to the success of your business. But habits aren’t always easy to establish or maintain. Maybe you don’t even know where to start.

At Financial Fitness Coaching, we help our clients learn and implement best practices in running their businesses. Put the days of hoping you’re doing the right things behind you. With a financial coach, you gain clarity and confidence by knowing you are effectively steering your business in the right direction.   

To see how we can help you and your business email me at kristen@financialfitnesscoaching.com or simply schedule a free 20-minute Discovery Call on my calendar.