As we hit the year’s halfway point, it’s an ideal time to pause and assess your business’s financial well-being. Like a routine health check-up, a mid-year financial review can help you catch minor issues before they become larger problems—and keep your business moving toward its goals.
At TriStar Tax & Business Solutions, we help small business owners manage their finances with smart, proactive strategies. From reviewing your financial statements to evaluating your budget and tax obligations, this guide will walk you through a practical checklist to help you finish the year strong.
In this article, you’ll learn how to:
- Evaluate key financial reports to assess business health
- Adjust your budget mid-year for better cash flow and planning
- Stay compliant with tax obligations and avoid costly surprises
1. Evaluate Your Financial Statements
Your financial statements offer a snapshot of your business’s performance so far this year. Reviewing these reports regularly gives you the clarity needed to make informed decisions.
Here’s what to examine:
- Profit and Loss Statement: Track your income and expenses to measure profitability and uncover any irregularities.
- Balance Sheet: Review assets, liabilities, and equity to assess financial health.
- Cash Flow Statement: Analyze how money moves in and out of your business to avoid future cash shortfalls.
These reports work together to help you understand where your business stands and where it’s headed.
2. Adjust Your Budget Based on Year-to-Date Performance
Your original budget was based on assumptions. Now that you have six months of actual data, it’s time to see how reality compares.
- Identify where you’ve overspent or underspent.
- Shift resources to better align with current priorities.
- Reforecast your revenue and expenses for the remainder of the year.
Budgeting is a living plan that should evolve alongside your business. Making adjustments now can keep you on track through the second half of the year.
3. Ensure Compliance with Tax Obligations
Mid-year is a smart time to double-check that your business meets its tax responsibilities before deadlines sneak up.
- Review your estimated tax payments to avoid surprises come tax time.
- Confirm that payroll taxes have been filed accurately and on time.
- Account for any tax law updates that may affect your business this year.
Staying ahead of your tax obligations reduces stress and protects you from costly penalties or missed deductions.
4. Conduct a Mid-Year Payroll Review
Accurate payroll is critical for maintaining compliance and keeping employees happy. Use this time to take a closer look at:
- Employee classifications (W-2 vs. 1099) to ensure compliance with federal and state laws.
- Pay rates and tax withholdings should be confirmed to ensure everything is calculated correctly.
- Filing schedules to ensure all tax documents and payments are submitted on time.
Payroll errors can be expensive and time-consuming. A simple mid-year review can help you catch issues before they escalate.
5. Reassess Your Financial Goals
Are you making progress toward the financial goals you set in January? Take a step back and reflect:
- Are your revenue and profitability goals still realistic?
- Have you faced any significant changes that require a pivot in strategy?
- Are there new growth opportunities to pursue?
Goal setting isn’t just for the start of the year. Revisiting your targets mid-year helps keep your business agile and focused.
Make the Most of Your Mid-Year Check-Up
Staying proactive about your finances gives your business the clarity and control it needs to grow. A mid-year check-up helps you catch problems early, seize new opportunities, and finish the year strong. TriStar Tax & Business Solutions is here to help you assess, plan, and thrive.
TriStar Tax & Business Solutions is locally owned and family-operated, with five locations in Nashville, Hendersonville, Brentwood, Murfreesboro, and Germantown-Memphis. With the experienced accounting professionals at TriStar, you’ll receive true expertise for all your small business needs with personalized attention and affordable rates. All services are by appointment only, so schedule in advance. Walk-in appointments are not available.
Let’s make the second half of the year your strongest yet. Your initial consultation is free—contact TriStar Tax & Business Solutions to get started today!
TriStar Brentwood
9005 Overlook Blvd PMB 6211
Brentwood, TN 37027-5269
Phone: (615) 537-0314
TriStar Hendersonville
131 Maple Row Blvd Ste B200
Hendersonville, TN 3705-3775
Phone: (615) 537-0314
TriStar Nashville
1300 Clinton St Ste 204
Nashville, TN 37203-7008
Phone: (615) 537-0314
TriStar Murfreesboro
640 Broadmor St
Murfreesboro, TN 37129-2747
Phone: (615) 537-0314
TriStar Germantown – We Moved!
1924 Exeter Rd Ste 4
Germantown, TN 38138-2976
Phone: (901) 853-8502