Now that we’re mid-way through 2025, it’s a great time for small business owners to take a more detailed look at their current financial position.
From expenses and cashflow, to tax position, a mid-year checkup of your small business finances can help you measure your progress more accurately, identify problems in their early stages, and make well-informed, confident decisions about its future.
Although working with Coral Springs accountants is the most effective way to carry out a mid-year financial assessment, it can be helpful to know which key areas they will likely focus on:
Cashflow and budget
Firstly, your chosen accounting professional will take a good long look at your cashflow. The statements you receive every month will tell them if enough income is coming in to cover all expenses. They will identify shortalls, look for rising costs that go beyond expectations, or any unevenness in revenue.
Each of these signs can help problems with your cashflow be identified early, empowering you to decide whether your pricing needs to be adjusted, spending should be cut, or your billing schedules.
Following on from this, your accounting professional will run something called a budget variance review, during which your actual spending is compared to your planned spending. This will help reveal those areas in which you’ve gone over your budget, and help you to make the necessary adjustments before the problem has a chance to develop and become worse.
Tax planning
No business owner should leave their tax planning until the end of the year. By around June, your financial activity will already be impacting your position in terms of taxes, making it the ideal time to work with a tax professional and review what you’re estimated to owe, any eligible deductions, and your tax liability overall. With a proactive approach, you still have time to reduce what you owe through tax planning strategies.
Management of growth and expenses
Including a detailed review of your business expenses and metrics related to performance, a financial checkup in the middle of the year helps you to achieve better control of your costs, and make growth-related decisions that are much more informed.
Your chosen tax professional will begin by meticulously reviewing your expenses, both fixed and variable, including such expenditures as payroll, rent, vendor contracts and supplies, among others. They’ll then identify the ones that support your businesses core operations, and which ones are reducing your margins. This kind of analysis from a qualified and experienced tax pro, that really focuses in on your expenses, can help you reduce waste while still offering quality products or services.
After this, it’s essential to track revenue as it stands, and compare it to how it was earlier in the year. Assess any possible changes in market share and customer retention, as these numbers will help show whether your business is gaining momentum, treading water, or losing ground.
Although a mid-year financial health assessment from an experienced accounting firm in Coral Gables is a positive step to take for any business, staying on top of your finances all-year round with regular assessments and ongoing checks, can be far more effective. And if your books are in a state of disarray, or preparing for your taxes feels overwhelming each year, engaging with tax and accounting professionals on a more regular basis can help ease your stress levels, reduce your workload, and generally make everything a little less painful!