Thinking about what’s possible for your business in the future and how you’re going to get there can be fun and exciting. Although it’s important to have a forward-thinking mindset, it’s important to first assess the recent history of your organization.
A mid-year review of the financial side of your business can provide clarity about your company’s financial position today and how you arrived at this position. The insights gained through this process will inform your decision-making for the rest of the year, possibly longer, as you determine where you want to go next and the best way to get there.
Generally, a mid-year review involves an assessment of three main categories.
1) Systems, Processes, and People
Systems and processes could be technology-based, or they could be people-based, whether in-house or outsourced. Regardless of the model you’re using, is it working? How do you know if it is or isn’t? Will it get you through the year, or do you need to make a change right now?
Are you targeting the right clients? Is your pricing correct? Are your profit margins meeting expectations? Are revenue cycles meeting expectations? Is revenue being affected by seasonality, unforeseen market conditions, or other trends?
Are expenses what you expected them to be at this point in the year? Are you confident in the decisions you’ve made? What can you learn from your spending habits and trends? Should you make adjustments?
It’s Not Just Numbers and Math
A mid-year review can be an emotional process. Numbers can be stressful and uncomfortable.
As a result, there is often a tendency to pretend certain challenges on the financial side of the business don’t exist or will resolve themselves. The notion that a financial review may reveal a perceived failure can trigger strong, negative feelings.
The fact is that many issues are temporary or minor and can be turned around fairly easily. You’re deep enough into the current year to identify challenges, and you have enough time left in the year to implement solutions. It’s always better to know what areas of your business need attention so you can address them and move forward.
I understand the psychological and emotional side of looking at the financial side of your business. If you don’t fully understand what the numbers mean and what you should do next, let’s walk through your financials together.
How I Can Help
Think of a mid-year review as healthy financial maintenance for your organization.
I can work with you to paint a clearer picture of where things stand now and what might need to be changed. Whether you intend to maintain the status quo and try something completely different, you can use historical data and trends to determine which strategies are viable and sustainable.
A mid-year review will also give you a head start as you look ahead to where you would like to take your business next year. We can then schedule ongoing check-ins to discuss your progress.
If you’d like to gain clarity about your company’s financial position, let’s talk. Contact me at Acorn Accounting to schedule a mid-year review of your company’s financial position.