As the midpoint of the year approaches, it’s the perfect time for South Carolina business owners to pause and evaluate their financial performance. A mid-year financial review is more than just a check-in—it’s an opportunity to assess progress, uncover inefficiencies, and adjust course before year-end.
At Peavy and Associates, we help businesses across South Carolina make informed decisions based on accurate financial data. Here’s how you can prepare for a productive and meaningful mid-year financial review.
Update Your Financial Records
The first step in any review is making sure your books are up to date. Ensure that all income, expenses, bank reconciliations, payroll entries, and tax filings are properly recorded through the first half of the year. Clean and current records provide the foundation for any financial analysis.
If you’re behind on bookkeeping or unsure about your records, our accounting team can help bring everything current and accurate.
Review Your Profit and Loss Statement
Your profit and loss statement (P&L) tells the story of your business’s financial health. During a mid-year review, compare this year’s numbers to the same period last year to spot growth, stagnation, or decline. Identify where revenue is strong, where costs may be rising, and which areas are underperforming.
Ask yourself whether your current margins align with your goals and whether your expenses are truly supporting business growth.
Evaluate Your Cash Flow
Cash flow is often more critical than profits when it comes to daily operations. A business can be profitable on paper but still face cash shortages. Analyze your cash inflows and outflows to determine if you have enough liquidity to meet upcoming expenses, invest in new opportunities, or cover unexpected costs.
We recommend preparing a cash flow forecast for the remainder of the year to anticipate potential shortfalls and plan accordingly.
Check Budget vs. Actual Performance
If you created a budget at the start of the year, now is the time to compare your actual results against those projections. Identify variances and explore the reasons behind them. Were sales lower than expected? Did marketing costs run over? Understanding these gaps helps refine your approach for the next six months.
If you don’t yet have a budget in place, consider creating one now to guide your spending and strategy for the rest of the year.
Assess Tax Position and Estimated Payments
A mid-year review is an ideal time to check your current tax situation. Based on your earnings so far, you may need to adjust your estimated quarterly tax payments to avoid underpayment penalties or surprises come tax season.
Peavy and Associates can help you project your year-end tax liability and suggest adjustments to your payments or tax strategy.
Revisit Business Goals and KPIs
Financial reviews should be tied to your overall business goals. Are you meeting your sales targets? Has customer retention improved? Are new initiatives producing a return on investment? Tracking key performance indicators (KPIs) alongside your financial data gives a more complete picture of how your business is truly performing.
If necessary, refine your goals or shift your focus to ensure that your business stays on track.
Plan for the Remainder of the Year
Use the insights from your review to guide strategic decisions for the rest of the year. Consider hiring needs, equipment purchases, marketing efforts, or financing options. A mid-year review is your chance to be proactive rather than reactive.
Partner with a Trusted Advisor
Peavy and Associates offers comprehensive mid-year financial review services for South Carolina businesses. Whether you’re a solo entrepreneur or managing a growing team, we’ll help you uncover opportunities, mitigate risks, and make confident decisions.
Schedule a mid-year review with us today and take control of your business’s financial direction.