Mid-Year Financial Check-Up: 5 Ways to Reset Your Business Finances Before Q3
- Andrea Pohlsander
- 6 days ago
- 6 min read
Updated: 19 hours ago
We're approaching the halfway point of the year. Like the wildflowers now reaching toward the summer sun, it's the perfect time for your Iowa small business to evaluate its financial growth and make adjustments for the months ahead.
A mid-year financial check-up isn't just good practice—it's an opportunity to course-correct while you still have time to impact this year's outcomes. According to a recent study, only 65% of small businesses achieve half of their yearly goals, and just 5% complete all of them (NOW CFO, 2024). Taking time for a mid-year review can dramatically improve these numbers. Let's explore five practical ways to reset your business finances and set yourself up for a successful second half of the year.
1. Reconcile and Review Your Books
Before making any strategic decisions, you need an accurate picture of your business's current state. Now is the ideal time to ensure your financial records are up-to-date and accurate.
Start with these steps:
Catch up on any bookkeeping that may have fallen behind
Reconcile all bank and credit card accounts through the end of April
Review your profit and loss statement for the first four months of the year
Compare your actual results to your 2025 projections or budget
Why this matters:Â Clean, accurate books give you the foundation for all other financial decisions. They're like a clear map showing exactly where your business has been and helping you chart where you want to go.
If your bookkeeping has fallen behind, don't worry—you're not alone. Studies from the Small Business Administration show that staying on top of financial records is one of the top challenges for small business owners across all industries.
Need to Get Your Books in Order First? Prairie Bookkeeping's Catch-Up Bookkeeping service quickly organizes your financial records, giving you the accurate foundation needed for an effective mid-year review.
2. Evaluate Your Cash Flow Position
Cash flow challenges are among the top reasons small businesses struggle, even when they're profitable on paper. Research shows that 66% of small businesses face significant financial challenges (The Zebra, 2024), many of which stem from poor cash flow management. A mid-year check of your cash flow health can prevent problems before they start.
Key questions to ask:
What's your current cash reserve, and how does it compare to your monthly expenses?
Are there any significant expenses or investments coming in the next six months?
How have your accounts receivable and payable cycles been performing?
Are there seasonal patterns you should prepare for?
Why this matters:Â Understanding your cash flow patterns now gives you time to build reserves or adjust payment terms before any potential cash crunches later in the year.
Quick win:Â Create a simple 90-day cash flow projection to identify any upcoming gaps. Seeing potential issues weeks in advance gives you multiple options for addressing them.
3. Revisit Your Tax Strategy
With the 2024 tax season behind us and half of 2025 nearly complete, now is a strategic time to review your tax position and make adjustments that could benefit your year-end tax situation. This is especially important given that 58% of small businesses cite inflation as their top concern in 2025, the highest level since tracking began (U.S. Chamber of Commerce Small Business Index, Q1 2025).
Consider these mid-year tax moves:
Review your estimated quarterly tax payments (next one due June 15)
Check if you're on track with retirement contributions
Evaluate whether your business structure still makes sense for your tax situation
Assess if you're maximizing available deductions
Why this matters:Â Proactive tax planning gives you control over your tax situation rather than being surprised at year-end. Minor adjustments now can lead to significant tax savings.
Work with your accountant to review your year-to-date financials and projected income to ensure you're not overpaying or underpaying your estimated taxes.
4. Analyze Your Profitability
The middle of the year provides enough data to spot meaningful trends in your business's profitability. This analysis can guide your focus for the remainder of the year. For context, healthy profit margins for small businesses typically fall between 7% and 10% (Vena, 2024), giving you a benchmark to measure against.
Dig into these areas:
Which products or services have been most and least profitable?
Are there expenses that have increased unexpectedly?
How do your profit margins compare to last year and your industry benchmarks?
Are there opportunities to raise prices or reduce costs?
Why this matters:Â Understanding profitability at a detailed level helps you make strategic decisions about where to invest your time and resources for the best return.
Quick win:Â Identify your three most profitable offerings and consider ways to promote or expand them during the second half of the year.
5. Refresh Your Financial Goals
The goals and budget you set in January may need adjusting based on what's happened in the first part of the year. Now is the perfect time to reset expectations and create focused financial objectives for the remaining months.
Ask yourself:
Which of your financial goals are on track, and which need adjustment?
Have new opportunities emerged that weren't part of your original plan?
What's one financial metric you want to improve by December?
What specific actions will help you achieve your adjusted goals?
Why this matters:Â Realistic, timely goals create focus and motivation. Refreshing your goals now prevents discouragement from pursuing targets that no longer make sense.
According to the U.S. Chamber of Commerce, businesses that regularly review and adjust their financial goals are 42% more likely to achieve their year-end targets than those that don't.
Putting Your Mid-Year Check-Up Into Action
Once you've completed these five review areas, you'll have a clear picture of your business's financial health and the adjustments needed to finish the year strong. The key is turning these insights into action.
Consider creating a simple one-page financial roadmap for the remainder of 2025 that includes:
Your top 3 financial priorities
Specific metrics you'll track
Key actions and their deadlines
Resources or support you'll need
Post this where you'll see it regularly to keep your financial goals in your mind.
Ready to Take Action on Your Mid-Year Review? Download our free checklist and turn what you've learned into a step-by-step plan for the remainder of the year.
Need Help With Your Mid-Year Financial Check-Up?
You're not alone if the thought of conducting a thorough financial review feels overwhelming. Many Iowa small business owners find themselves too busy working in their business to work on their financial strategy. This is understandable, as a recent Intuit QuickBooks survey revealed that 42% of small business owners admit they had limited or no financial literacy before starting their businesses (QuickBooks, 2025).
That's precisely why Prairie Bookkeeping offers targeted financial check-up services. We can help you get a clear picture of your current position and create a practical plan for the months ahead. Think of it as financial weeding and fertilizing—removing what's not working and nurturing what helps your business grow.
FAQs About Mid-Year Financial Check-Ups
How long should a mid-year financial review take?Â
For most small businesses, a thorough mid-year review can be completed in 3-4 hours, though implementing the resulting action items may take longer. The time investment now saves significantly more time and stress later.
What if my books aren't up-to-date enough to do a proper review?
How do I know if I should adjust my financial goals for the year?
Is the middle of the year really the best time for a financial check-up?
What's the single most important financial metric to review mid-year?
Like the strong root systems that help wildflowers thrive through changing seasons, a solid financial foundation helps your business adapt and grow regardless of market conditions. Taking time now for a mid-year check-up creates resilience for whatever the second half of the year brings.