The year is halfway over—how’s your business really doing?
July is the perfect time for a financial pulse check. Whether your business is growing steadily or you’ve hit a few bumps along the way, reviewing a few key metrics now can help you avoid surprises and make smarter decisions in the months ahead.
Here are five essential numbers to review before diving into the second half of the year:
1. Year-to-Date (YTD) Profit
Your profit and loss (P&L) statement holds the truth: are you actually making money?
Compare your total income and total expenses from January through June. What’s your bottom line? Is it what you expected? Look for:
Profit trends month over month
Major shifts in spending or revenue
Any red flags, like shrinking margins or high overhead
Tip: If your revenue is growing but profit isn’t, it might be time to re-evaluate pricing or expenses.
2. Cash Flow
Profit and cash flow are not the same—and many business owners don’t realize that until there’s a problem.
Check your cash flow statement (or use your bank balance history as a proxy) to answer:
Are you consistently cash-flow positive?
Did you have any months where cash went negative?
Are you collecting payments promptly?
Strong cash flow is essential for payroll, paying bills, and staying stress-free. If it’s unpredictable, consider reviewing your invoicing process or payment terms.
3. Accounts Receivable (AR)
How much money are you owed—and how long have you been waiting?
Look at your aging report or accounts receivable summary. Pay attention to:
Total outstanding invoices
Invoices more than 30, 60, or 90 days past due
Any repeat offenders
This is money you’ve earned, but haven’t collected. Mid-year is a great time to send reminders and tighten up your collections process if needed.
4. Operating Expenses
Business expenses often creep up over time—subscriptions, software, and services can slowly eat into your profits.
Run an expense report and categorize your costs. Ask:
Are there any unnecessary or duplicated expenses?
Have any vendors raised prices?
Are your marketing and payroll expenses aligned with your current revenue?
Cutting unnecessary costs now gives you more flexibility for the rest of the year.
5. Budget vs. Actual
Did you make a budget at the beginning of the year? Now’s the time to compare your projected income and expenses to the actuals.
What you learn can help:
Adjust spending for the remainder of the year
Set more realistic revenue targets
Prepare for tax estimates or year-end purchases
If you didn’t make a budget—no worries! Use this review to build one for Q3 and Q4.
Why It Matters
Taking the time now to review your numbers isn’t just about staying organized—it’s about being strategic. You’ll gain clarity, reduce financial stress, and position your business to finish the year strong.
Need help reviewing these metrics or understanding what they mean for your business? We’re here to support you. Contact us to see how we can help.