August marks the perfect time for businesses to pause and reflect on their financial health. With half the year behind us and the busy holiday season ahead, a mid-year financial checkup ensures that your business is on track to meet goals, maximize profits, and prepare for tax season.
At Peavy and Associates, a full-service accounting firm, we help businesses across industries review, adjust, and optimize their finances so they finish the year strong. Here’s how to conduct a smart financial checkup this August.
1. Review Your Cash Flow
Cash flow is the lifeline of your business. Take time to analyze how money is coming in and going out. Are accounts receivable being collected promptly? Are expenses aligned with revenue? Identifying gaps now can prevent year-end surprises.
Pro Tip: Set up cash flow forecasts for the next 6 months to ensure you’re prepared for seasonal fluctuations.
2. Evaluate Year-to-Date Performance
Compare your year-to-date (YTD) financial statements against your budget or projections. Are you hitting revenue targets? Are expenses creeping higher than expected? A mid-year review helps you pivot if your business is off course.
3. Update Tax Strategies
Waiting until December to think about taxes is a mistake. By August, your accountant can project potential tax liabilities and help you implement strategies like estimated payments, retirement contributions, or accelerated deductions. Planning ahead reduces the stress of tax season and often saves money.
4. Reassess Business Expenses
Many business owners overlook recurring costs like software subscriptions, utilities, or insurance. Conducting an expense audit mid-year ensures you’re not overspending on services you no longer need. Trimming even small expenses can make a big impact over time.
5. Check Compliance and Payroll
Payroll taxes, employee benefits, and compliance filings can be easy to overlook. A mid-year review ensures your payroll system is accurate, benefits are being reported correctly, and compliance obligations are up to date. This prevents costly errors down the road.
6. Plan for Growth
Are you looking to expand, hire, or invest in new technology before the year ends? August is the perfect time to plan strategically. With six months left, you can align your growth plans with your financial capacity.
Partner with Peavy and Associates for Peace of Mind
A mid-year financial checkup isn’t just about crunching numbers—it’s about giving your business the clarity and confidence to finish the year successfully. At Peavy and Associates, our team of experienced accountants offers comprehensive financial reviews, tax planning, and advisory services tailored to your unique needs.
✨ Schedule your mid-year financial review with Peavy and Associates today and set your business up for a strong finish in 2025! ✨