In this episode of Entrepreneur Money Stories, we dive into the specific steps needed to conduct a quarterly financial review for your business. Join us as Danielle from Kickstart Accounting shares their proven process, empowering you to minimize tax liabilities and finish the year strong.


Why Should I Do a Mid-Year Check In?

Setting clear intentions at the beginning of the year allows for hyperfocus on what truly matters to your business. However, a mid-year check-in is essential to ensure you’re on track or need to recalibrate your goals. Successful business owners are willing to pivot and adapt when necessary, especially if unexpected growth occurs. If you don’t have a CPA offering mid-year check-ins, consider finding one to help optimize your tax strategy for the second half of the year.


Starting the Process: Prep Work and First Steps 

To start the process, block out uninterrupted time in your calendar and create a quiet space for reflection. Gather important documents, including your monthly snapshot, income statements, balance sheet, cash flow statement, written goals, and a notebook. Arrive on time and treat this meeting with respect, dedicating the full allotted time to focus solely on your business.


Begin the review by expressing gratitude for what has gone well in your business so far. Then, revisit the intention you set at the beginning of the year to ensure it still aligns with your current situation. Analyzing your income statement, focus on three key numbers: gross profit, monthly net income, and monthly cash flow.


Income statement, Balance Sheet, and Cash Flow Statement 

Next, examine your balance sheet to assess the assets and liabilities of your business. Aim for a healthy debt-to-income ratio and ensure you have sufficient assets or cash to cover your business’s debt. The cash flow statement provides insight into where your money goes, clarifying if it’s being used to repay previous debts or accumulate in your personal account. Consider setting an intention for the latter half of the year, such as saving 6-12 months of operating expenses for increased financial security.


What Happens When I Get Back to the Office?

Returning to the office, utilize your new intention as a filter for decision-making. When faced with business choices, ask yourself if they are necessary, align with your goals, and identify the best approach. Avoid letting FOMO dictate your decisions and understand the cost of both action and inaction. To maintain momentum, use monthly snapshots to reflect on your financial direction. Take the time to analyze and evaluate your spending habits and leverage your bookkeeping team’s expertise to gain further insights.


In conclusion, this episode equips you with the knowledge and tools to conduct a powerful mid-year financial review. By implementing this process, you can make informed decisions, optimize your financial strategy, and confidently steer your business towards success.


Key Points 

[02:55] Why do I need to do a mid-year check in?

[08:28] Starting the process: prep work and first steps 

[20:08] Looking at your income statement, balance sheet, and cash flow statements

[27:16] What happens when you get back to the office?

[30:34] Tools and systems to keep yourself aligned 


Connect with Danielle:

Instagram | Follow on Instagram 

Website | Kickstart Accounting 

Facebook | Like our sponsor’s page on Facebook 

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