If you are like me, it’s hard to believe that the year is already half over, but here we are. Before you know it, we will be talking about
year-end and prepping for 2023. While we are not there yet, now is a great time to pause and review how the year has gone so far and where you think your business will perform for the remainder of the year.
With two quarters behind us, July is the time for a mid-year checkup to determine the health of your business. Schedule a meeting with your
bookkeeper/accountant to review revenue and expenses with the following focus.
- Prior year comparison – this will help you see how you are trending with any seasonal activity in your field.
- Actual compared to budget – looking at what you expected versus the reality of what happened will help you identify areas that are performing well as well as areas that may need to be modified.
- Trendlines for the remainder of the year – with the information from the above, you can better forecast how your business will perform for the remainder of the year.
Having a not-so-good year?
If the first half of 2022 has not been what you expected, you can still shift the trends. Consider reviewing the following:
Lower than expected revenue?
- What can you do to supercharge sales? Incentives, sales, promotions?
- How is your customer retention?
- Do you need to accelerate marketing efforts?
Higher than expected expenses?
- Can you reduce simple expenses, such as office supplies or other smaller items?
- Should you delay the purchase of equipment or other expensive items?
- Can you negotiate vendor rates or look for other supplier options?
Having a good year?
Fantastic! But, that doesn’t mean you can coast through the rest of the year. If you are having a great year and your forecast shows having a better year than you budgeted, here are a few actions you may want to consider:
- Meet with tax accountant to see about reducing tax burden.
- Should you change your 3Q estimated tax payments?
- Do you have an opportunity to increase your SEP IRA?
- Should you accelerate the purchase of equipment or expensive items?
*Budget note for NM-based businesses*
As you are reviewing your budget, be sure you are accruing paid
time off per the guidelines of the newly passed Heathy Workplaces Act (https://www.dws.state.nm.us/NMPaidSickLeave). While
it is too soon to review the impact of this new law, it is important that you
are accruing the upcoming labor expenses on your balance sheet.
With June behind us, don’t forget about a few upcoming report deadlines to officially close out the quarter:
- 941 report
- Workers comp report
- ES 903A-Wage & Earnings report
While it may seem like we will be closing out the year before we know it, now is the time to stop and review 2022 so that you can achieve a successful year.