“The best preparation for tomorrow is doing your best today.”
– H. Jackson Brown, Jr.
As the halfway point of 2023 approaches rapidly, now is the perfect moment to conduct a comprehensive budget checkup for your business. This will provide valuable insights into your business performance and help identify any necessary adjustments to ensure a successful year-end. When conducting a midyear review, ask yourself these questions:
How are your year-to-date expenses and revenue aligning with your initial projections?
Are you meeting your sales goals? If not, how will you address the situation? Add new products? Eliminate unprofitable products that may be zapping your time? Are you pricing your product correctly? Is your marketing/sales plan being followed? What is the potential revenue from the changes you are making?
What is your cash flow situation?
Many businesses have been experiencing significant cash flow shortages due to cost fluctuations in supplies and, in some cases, slow-paying customers. Consider performing a cash flow analysis to help detect if there are any collection issues or whether you should revisit some of your vendor relations. Once you’ve reviewed key areas such as the actual costs of your inventory or supplies, vendor payments and collections from customers, it will help you make the appropriate adjustments.
Are there any adjustments you should consider from a tax perspective?
A few areas to evaluate from a tax perspective include whether there have been any recent changes in tax laws, plans for capital expenditures, and tracking your quarterly tax payments to see if any adjustments should be made. With economic conditions changing so drastically right now, it’s a great time to review these payments rather than wait until the year-end, when you usually do.
What is there to consider when hiring new personnel?
Will additional phones be needed, cell phone or land line? How much training time is needed? What will the training cost? Are more supplies needed? Is there enough office space?
In conclusion, conducting a midyear budget review is a proactive step towards ensuring the success of your business for the remainder of the year. By evaluating key areas such as expenses, revenue, cash flow, tax considerations, and potential adjustments due to hiring new personnel, you can make informed decisions and steer your business in the right direction.
If you have any questions or need assistance with your budget review, don’t hesitate to contact me today. We’re here to help you achieve financial stability and maximize your business’s potential.
