How to pause, assess, and optimize your business finances before year-end.
You’re six months into the year. Sales have happened, expenses have piled up, and maybe you’ve felt a little too reactive instead of proactive with your finances. That’s exactly why it’s time for a mid-year financial review.
The good news? You don’t need to wait until Q4 or tax season to get things on track. A mid-year review is your chance to step back, look at your numbers, and make the kind of decisions that drive profit—not just survival.
This post will walk you through a simple, strategic mid-year financial review checklist that you can use whether you’re a solopreneur, CFO, or CEO-in-training.
✅ Why a Mid-Year Review Matters
You can’t make smart decisions with messy data—or no data at all. A mid-year review helps you:
- Check in on your goals vs. actuals
- Spot financial leaks before they snowball
- Prepare for tax season early
- Realign your budget, pricing, and payroll
- Make strategic moves in Q3 and Q4
Think of it like a six-month checkup for your business health. It’s not about judgment—it’s about clarity and course-correcting with confidence.
🗂️ Your Mid-Year Financial Review Checklist
1. Reconcile All Bank and Credit Card Accounts
Before you look forward, make sure everything behind you is in order. Reconciliation ensures your books match your bank records—no surprises, no missed transactions.
- Log into your accounting software (like QBO)
- Reconcile each bank and credit card account through the most recent month
- Investigate any discrepancies (duplicate entries, uncategorized expenses)
Tip: If you’re behind, prioritize current-year reconciliations first. Work backwards if needed.
2. Review Your Profit & Loss Statement (P&L)
Your P&L (Income Statement) shows revenue, expenses, and net profit. It’s the financial mirror of your business. Here’s what to look for:
- Are your gross revenue and net profit where you expected?
- What’s your biggest expense category—and is it worth it?
- Are any expenses higher (or lower) than planned?
Break it down by quarter or by month to spot patterns. If Q1 was slow but Q2 was strong, what changed?
3. Review Your Balance Sheet
The Balance Sheet tells you what your business owns, owes, and retains.
- Review outstanding liabilities (loans, taxes, payroll obligations)
- Check assets like accounts receivable—who still owes you money?
- Confirm that owner draws, distributions, and equity contributions are correct
Tip: If your balance sheet doesn’t “balance,” it’s time to clean up or consult your bookkeeper.
4. Assess Your Cash Flow
Profit is good—but cash flow is king. Use a simple cash flow statement or even a spreadsheet to check:
- Is your cash balance growing or shrinking?
- Are you collecting on invoices promptly?
- Are there consistent slow periods?
Understanding your cash flow cycles helps you plan for taxes, make big purchases, or decide when to reinvest.
5. Compare Budget vs. Actuals
If you started the year with a budget—amazing! Now’s the time to compare what you planned with what actually happened.
- Are you on track with income goals?
- Have certain expenses exceeded budget?
- Can you reallocate funds for Q3 or Q4?
If you didn’t make a budget, now is a great time to start. Even a simple forecast for the next six months can guide better decisions.
6. Check Accounts Receivable and Payable
Don’t leave money on the table—or bills unpaid.
- Run an A/R Aging Report (who owes you, how much, and how long it’s overdue)
- Run an A/P Report (what you owe and when)
- Follow up on overdue invoices
- Pay outstanding bills strategically (especially ones that may affect credit or relationships)
Tip: Use this time to clean up old entries or write off uncollectible receivables.
7. Re-Evaluate Subscriptions, Software, and Tools
You’d be surprised how much money leaks out in unused tools or overlapping subscriptions.
- Review your last 3 months of expenses
- List every recurring charge—ask: Do I still use this? Is there a better option?
- Cancel or downgrade what’s not helping you move the needle
A simple audit could save you hundreds (or thousands) before year-end.
8. Review Your Payroll and Contractor Expenses
Payroll is often a business’s biggest cost. Make sure:
- Wages and salaries are accurate and categorized correctly
- Contractors are tracked separately from employees
- You’re withholding and remitting taxes properly
- You’ve collected W-9s for contractors and are on track for 1099s
Tip: Now’s the time to fix classification issues before year-end tax filings.
9. Evaluate Pricing and Profit Margins
Are you charging enough? Are your offerings still profitable?
- Calculate gross margin per service or product
- Compare time spent vs. revenue earned
- Consider raising prices if expenses have increased or demand is strong
Small pricing adjustments now can lead to bigger profits later.
10. Update or Create SOPs for Financial Tasks
If you’re running everything from memory, it’s time to document.
Create or update:
- Monthly bookkeeping checklists
- Payroll procedures
- Receipt and document storage workflows
- Invoice submission guidelines (especially if you’re a service provider)
Bonus: This makes it easier to delegate or hire later.
11. Meet With Your Bookkeeper or Accountant
If you work with a financial pro, schedule a mid-year meeting. Topics to cover:
- Any issues they’ve spotted in the books
- Opportunities for tax savings
- Whether your entity structure still makes sense
- Planning for Q4 spending, deductions, or retirement contributions
Even if you DIY, consider booking a one-time strategy session.
12. Set Financial Goals for Q3 & Q4
Now that you’ve reviewed the first half of the year, plan intentionally for the second half.
Ask yourself:
- What do I want revenue and profit to look like by December?
- What expenses can I reduce, renegotiate, or eliminate?
- Where can I invest for long-term growth?
- How will I track my progress monthly?
🎯 Mid-Year Review = Financial Power
Doing a mid-year financial review isn’t just about “checking in”—it’s about gaining control, clarity, and confidence.
When you make time to review your finances, you’re not just managing numbers—you’re building the foundation of a profitable, scalable, and intentional business.
It doesn’t have to be perfect. It just has to be done.
🛠️ Need Help?
If you’re overwhelmed, behind, or unsure how to pull these reports, you’re not alone. That’s exactly what I help business owners do every day through systems strategy and controllership-level bookkeeping.
Ready to get your finances organized for the rest of the year?
Visit ericaoldham.com/blog for more resources—or reach out for 1:1 support.
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