Now that we’ve reached June and the midway point of the year, it’s the perfect time to pause and take stock of where your business is at, and where you’re heading for the second half of the year. This can be particularly important if you’re running a small business that has razor-thin profit margins. Taking time for a mid-year review isn’t just a smart move, it’s crucial in allowing your business to remain agile.

Not sure what a mid-year review entails? Exchange Bank of Northeast Missouri has you covered! We’ve put together five key steps that will help you take stock of your company’s financial health and set you on a path for success as we move into the second half of the year.

Step 1: Review Financial Statements

Everything starts with getting a clear, updated view of where your business is at the midway point of the year. You can’t make accurate projections and set attainable goals if you have no idea how your business is actually performing. Take the time to:

  • Gather your year-to-date documents (like income statements and balance sheets)
  • Evaluate your current cash flow and how that compares to your forecasts
  • Budget for the remainder of the year accordingly

Now is the time to go over your statements with a fine-tooth comb and identify any areas you’re lagging behind, find any discrepancies or red flags, and make the proper adjustments to set yourself up for success moving forward.

Step 2: Reassess Your Forecasts and Budget

Were you too aggressive with your projections at the beginning of the year? That’s okay! That’s the kind of thing that a mid-year review allows you to correct. Once you’ve taken the time to review your statements, you can adjust your projections based upon the actual performance of your business along with the current market conditions.

This is the time for you to (if possible):

  • Re-allocate funds to high-performing areas while also reassessing where you’re spending your money
  • Explore investment opportunities if you have room for them in the budget
  • Prepare for any seasonal fluctuations your industry may experience in the fall and winter months

Step 3: Evaluate Cash Flow Management

Perhaps the most important step in this process is evaluating your cash flow management and ensuring that you have enough liquidity to cover your operational costs for the remainder of the year. If you’re falling short in this area, now is the time to consider money management tools to help you get back on track, and to find areas where you can improve efficiency to boost your cash flow.

Step 4: Revisit Your Business Goals

Has your company fallen short of projections in the first half of the year? Now is the time to evaluate the steps you can take to get back on track and, if necessary, set more realistic goals for the second half of the year. On the other hand, if your business is exceeding the expectations you had for it, now is the time to make smart moves to accelerate your growth and set loftier – but still achievable – goals for the third and fourth quarters.

Step 5: Consult with a Financial Advisor

Whether your business is struggling or thriving, taking a few minutes to speak with a financial advisor can greatly benefit the business. This is the perfect time to get some expert advice on your financial strategy and ways you can adjust to meet your goals. It’s also the perfect time to discuss tax planning and compliance and explore funding options for expansion if that’s something you have in mind for the business and is in the budget.

No matter how your business performed in the first half of the year, taking the time to evaluate your performance can only benefit both you and the company. Make sure you and your business are set up for success moving forward! Need some guidance along the way? The team at Exchange Bank of Northeast Missouri is here to help! Contact us today to speak with a member of our team.

Get In Touch with EBNEMO

Member FDIC, Equal Housing Lender, NMLS#EBNEMO