Enterprise Bank & Trust
Mid-Year Financial Status

Mid-Year is a Great Time to Evaluate Your Financial Status

June 19, 2017

As we near the midpoint of the year, now is a great time to conduct a review of your 2017 business and financial goals. A mid-year assessment helps you avoid a year-end scramble, giving you enough time to make adjustments that can make the difference between meeting your goals, and missing the mark.

Start with an assessment of your overall cash position. Understand where you are with your cash flow and taxes. It is quite common for market forces to take unexpected turns in the course of six months, so it is also good business practice to re-evaluate budgets halfway through the year.

On your budget, evaluate both income and expenses. On the income side, here are a few key questions to consider:

  • Do revenue and sales projections need to be revised?
  • Do you need to push your sales team to be more aggressive? Determine what is driving cash flow. Is there a specific product that should become your focus?
  • Is there anything you can do to advance opportunities and close deals faster?
  • Does your marketing plan require any adjustments to target a booming market, or provide a boost to an underperforming market segment?
  • Has anything that factored into your projections changed enough that you should re-work your projections entirely?

Ask your team questions on the expenses side as well.

  • Can any re-negotiating be done to find better deals with key vendors?
  • Are you maximizing internal processes to minimize billing errors and write-offs?
  • Has the income side dropped off enough that there is a need to trim budgets?
  • Conversely, are income and projections strong enough to potentially boost budgets in key areas?

Mid-year is a great time to meet with your tax professional to ensure your tax situation is where you expected it to be. They should help ensure that your taxes are paid up at that point in the year, as well as recommend any adjustments to your payments and tax approach based on your revised projections for the second six months of the year.

The other major area to evaluate is your cash flow position. Evaluate your cash flow year-to-date, and project out the rest of the year. Identify any gaps, and be sure you understand when and why outflow is greater than inflow. To maximize cash flow, now is a great time to review slow-paying clients and push to get current with them.

Ideally, you want to have five months of cash reserves on hand to cover expenditures in leaner months. Check out our blog post, “Cash Flow is King,” for more helpful tips on cash management. It is a best practice for companies to have a “cash flow management” strategy in place. If you have not developed a cash flow strategy, check out this blog post which provides a great primer for getting started.

After conducting your mid-year review, be sure to put one final quarterly checkpoint in your calendar in the fall. It’s your last big chance to make adjustments that will help you hit your goals.

One final piece of advice. Stop and take a moment to be thankful and grateful for your clients, employees, vendor partners, and suppliers – maybe even tell them so!

If you don’t have a cash flow management strategy in place, or would like advice on maximizing cash flow, talk to your Enterprise relationship manager, or contact us. Let’s start a conversation!


Note:  Enterprise Bank & Trust is not responsible for the content managed on third party sites.