{"id":86,"date":"2018-05-22T01:26:41","date_gmt":"2018-05-22T05:26:41","guid":{"rendered":"http:\/\/www.heywardcpa.com\/blog\/?p=86"},"modified":"2023-12-03T22:14:27","modified_gmt":"2023-12-04T03:14:27","slug":"do-a-financial-review-mid-year","status":"publish","type":"post","link":"https:\/\/www.heywardcpa.com\/blog\/2018\/05\/22\/do-a-financial-review-mid-year\/","title":{"rendered":"Why you should do a mid-year financial review?"},"content":{"rendered":"
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via Stocksnap.io<\/figcaption><\/figure>\n

As we near the halfway point of the year, it’s time time to think about scheduling a mid-year checkup. No, we\u2019re not talking about the height\/weight\/blood pressure kind of checkup, we\u2019re talking about the income statement\/balance sheet\/cash flow kind of checkup — a review of your business\u2019s financial operating fundamentals.<\/p>\n

If you review your vital financial information only when year-end rolls around, you may not know there\u2019s a problem until it\u2019s too late. The more often you take your company\u2019s “pulse,” the sooner you\u2019ll be able to notice — and react to — changes in your business situation.<\/p>\n

Check Your Vital Signs<\/strong><\/p>\n

What should you be looking at? Start with the operating fundamentals. For example, what\u2019s the status of accounts payable? When\u2019s the last time you ran an aging report for accounts receivable? How quickly is your inventory turning? What is your profit margin?<\/p>\n

These numbers are critical to running your business. You can\u2019t make accurate decisions if your figures are old. And, by keeping track of key financial ratios, you can more readily spot trends that should be addressed sooner rather than later.<\/p>\n

Monitor Your Budget<\/strong><\/p>\n

Next, check your spending. If overspending is a problem, creating a comprehensive budget that establishes realistic guidelines is an effective remedy. Make sure you have a budgeted amount for every line item expense on your operating statement. Then track and compare actual spending to budgeted amounts on a regular basis.<\/p>\n

Reduce Your Debt<\/strong><\/p>\n

Avoid the temptation to take out all your profits in good years. Instead, consider reinvesting some of those earnings in the business. Using retained earnings instead of debt to capitalize your business saves money — and provides a safety net that will be there to help you through periods of lackluster sales or unexpected expenses. A healthy debt-to-equity ratio will also look great when it\u2019s time to borrow money or sell your business.<\/p>\n

See a Specialist<\/strong><\/p>\n

Helping owners build and maintain healthy businesses is our specialty. Let\u2019s schedule that mid-year review of your company\u2019s finances soon.<\/p>\n

To learn more about financial reviews give us a call today. Our trained staff of professionals are always available to answer any questions you may have.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

As we near the halfway point of the year, it’s time time to think about scheduling a mid-year checkup. No, we\u2019re not talking about the height\/weight\/blood pressure kind of checkup, we\u2019re talking about the income statement\/balance sheet\/cash flow kind of checkup — a review of your business\u2019s financial operating fundamentals. If you review your vital … Read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[85],"tags":[],"class_list":["post-86","post","type-post","status-publish","format-standard","hentry","category-small-business"],"modified_by":"James E. Heyward CPA","_links":{"self":[{"href":"https:\/\/www.heywardcpa.com\/blog\/wp-json\/wp\/v2\/posts\/86","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.heywardcpa.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.heywardcpa.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.heywardcpa.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.heywardcpa.com\/blog\/wp-json\/wp\/v2\/comments?post=86"}],"version-history":[{"count":2,"href":"https:\/\/www.heywardcpa.com\/blog\/wp-json\/wp\/v2\/posts\/86\/revisions"}],"predecessor-version":[{"id":1766,"href":"https:\/\/www.heywardcpa.com\/blog\/wp-json\/wp\/v2\/posts\/86\/revisions\/1766"}],"wp:attachment":[{"href":"https:\/\/www.heywardcpa.com\/blog\/wp-json\/wp\/v2\/media?parent=86"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.heywardcpa.com\/blog\/wp-json\/wp\/v2\/categories?post=86"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.heywardcpa.com\/blog\/wp-json\/wp\/v2\/tags?post=86"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}