Mid-Year Money Check-In: How to Assess and Adjust Your Business Finances Before Q4
Mid-Year Money Check-In: How to Assess and Adjust Your Business Finances Before Q4
August is a natural pause point in the year. You’ve made it through tax season, closed out the first half of the year, and now you have a clear window to review how your business is performing before the busy final quarter.
At Truly Bookkeeping, we encourage small business owners to use this time for a mid-year money check-in, a practical, proactive review of your finances to ensure you’re on track to hit your goals.
Here’s how to assess and adjust your business finances before Q4.
1. Review Your Year-to-Date Financials
Start with your profit and loss (P&L) statement. Look for trends:
- Is your revenue tracking with your projections?
- Are expenses creeping higher than planned?
- Is your gross profit margin healthy?
If you don’t already review these numbers monthly, now’s the time to begin. Understanding your numbers in real-time helps you make informed decisions rather than reacting when it’s too late.
2. Spot Red Flags Early
Mid-year is your chance to identify and address problems before they snowball. Some common red flags include:
- Consistently late-paying clients
- High accounts receivable balance
- Dipping cash reserves
- Repeated budget overruns
Addressing these issues now can help you preserve cash flow and profitability heading into Q4.
3. Evaluate Your Pricing and Expenses
A lot can change in six months: cost of goods, software subscription rates, and even your workload. Ask yourself:
- Is my pricing still aligned with my value and costs?
- Are there expenses I can reduce or eliminate?
- Do I need to invest in tools or support to improve efficiency?
Making these adjustments in August gives you a strong runway into the new year.
4. Forecast the Rest of the Year
Pull out your calendar and financial data. Map out projected income and expenses for September through December. Include:
- Seasonal sales fluctuations
- Annual renewals and subscriptions
- Planned investments or big purchases
This forward view allows you to prepare for slower periods and take advantage of growth opportunities.
5. Plan for Taxes and Savings
Don’t let tax season sneak up on you. By August, you should have a clear idea of your estimated tax payments for the year. This is also a great time to check in on your:
- Emergency fund
- Profit reserves
- Owner’s pay account
If these are running low, you have time to make strategic shifts before year-end.
One Final Thought: Small Adjustments, Big Impact
A mid-year money check-in isn’t about overhauling your entire business, it’s about making smart, targeted adjustments so you end the year strong.
At Truly Bookkeeping, we help small business owners not only track their numbers but also understand and act on them. Whether you’re DIY-ing your bookkeeping or ready to hand it off, now is the perfect time to ensure your finances are working for you, not against you.