Time flies by when you are having fun, or when you own a small business. The middle of the year is a great time to do a quick check on your business financials to ensure you are prepared for the year ahead. We’ve put together a quick mid-year accounting checklist that you can use to ensure your books are up to date and that you are ready to tackle the rest of this year!
Is your bookkeeping up to date?
I know that sometimes I sound like a broken record with this question but having your bookkeeping up to date on a monthly (or quarterly) basis is one of the most important ways to ensure your business’ success. With up to date financials, you can make decisions based on fact, not feeling. You will know if you can afford new equipment, if you need to save more for taxes or if you need to book more work for the end of the year. If you haven’t kept up with your books this year, now is the perfect time to catch up or hire someone to do it for you.
Do you have a budget for the rest of the year?
The word budget is not a scary word. Honestly, a budget is just an estimate of income and expenses. You need a budget, so you can measure how your business is performing during the year. If you haven’t created a budget yet, I would suggest making one for the rest of the year, so you can measure your performance during the last six months of this year.
Have you compared year to date financials from last year to this year?
At this point in the year it is good practice to compare your financials from this year to last year. If you see any major changes, either increase or decrease in income, then you should inform your CPA. Those changes could impact your quarterly and yearly tax requirements. By reviewing your financials, you can also see how your business is performing compared to last year. If you haven’t booked as much work as last year by this time, you may need to look at some new strategies for getting clients. If you are spending more on expenses this year, then last year, you should know why. All these answers can be found in your financials.
Have you taken a break?
As a small business owner, it is so easy to work 24/7 and forget to take a break from the business. It’s important to take a day or a few for yourself and your family. Summers are the perfect time for a little getaway to the beach, a road trip to a favorite winery or just a day at the spa. If you take a small break today, it will save you from burnout in the future. Trust me.
So, how did you fair on the checklist results? If you answered YES to all of these questions, then I am impressed. If you didn’t, please don’t stress. The middle of the year is a great time to tackle a few of these items and prepare for the end of the year. If you have any questions, please contact us.
Written by Tom Barnhill, co-founder of Business by Barnhill