{"id":17965,"date":"2024-07-16T14:00:00","date_gmt":"2024-07-16T13:00:00","guid":{"rendered":"https:\/\/ctt-group.co.uk\/?p=17965"},"modified":"2024-07-15T08:48:25","modified_gmt":"2024-07-15T07:48:25","slug":"how-to-conduct-a-mid-year-financial-review","status":"publish","type":"post","link":"https:\/\/ctt-group.co.uk\/how-to-conduct-a-mid-year-financial-review\/","title":{"rendered":"How to conduct a mid-year financial review"},"content":{"rendered":"
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Being able to adjust your financial strategy as needed ensures you are prepared for anything that may come your company\u2019s way.<\/p>\n

Knowing the financial health of your business is vital; by carrying out regular assessments you allow the best version of your company to flourish.<\/p>\n

For a small and medium-sized enterprise (SME), carrying out a financial review mid-year is essential. Financial reviews provide valuable insights, giving you information on the past, present, and future of your company\u2019s overall well-being.<\/p>\n

5 steps to complete your mid-year financial review<\/strong><\/h4>\n
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  1. Review your budget<\/strong><\/li>\n<\/ol>\n

    Projected budgets are great to give you a target to aim for in the coming year. Reality, however, is rarely kind to your plans. Reviewing your actual figures and how they compare to your projected budget is crucial.<\/p>\n

    There are a number of ways to carry out this exercise, with tools like Fluidly and of course our accounting services here at CTT. By looking at invoice payments, direct debits, and other regular payments and then comparing this to your projections you can see any discrepancies easily.<\/p>\n

    Once you have done this, discovering the reasons your budgetary projections may have diverged allows you to course correct and create a far more accurate projection for the rest of the year.<\/p>\n

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    1. Analyse revenue<\/strong><\/li>\n<\/ol>\n

      When carrying out a review of your budget you\u2019ll see the various ins and outs of the cashflow for your business. With the information on any unexpected increases or decreases in the amount you anticipated you\u2019ll be able to correct any issues before they become a problem.<\/p>\n

      Analysing your income every six months like this means that you can adjust your financial trajectory without any major retooling of your budget. It\u2019ll be rare that any financial issue will become a major problem within six months unless there has been some serious mismanagement occurring.<\/p>\n

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      1. Review investments <\/strong><\/li>\n<\/ol>\n

        Small savings add up to big gains over time, no matter how much you can put aside, it all counts in the end. Taking a look at the status of your investments and savings regularly, allows you to make sure your money is still working for you. Get in touch with us for some professional advice<\/a> on how to invest and save effectively.<\/p>\n

        Creating ways to generate wealth is an important step for small businesses especially. Investing effectively helps you prepare for the future and uses your money intelligently rather than simply accruing it as your business grows.<\/p>\n

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        1. Review your tax strategy <\/strong><\/li>\n<\/ol>\n

          Failing to plan strategically for the tax of your business can lead to a much bigger impact on your finances than is necessary. At CTT, our advisers help you to navigate the minefield of tax implications and tax law as it affects your business. There are often tax incentives that you may be unaware of and ways to optimise your tax payments to make a substantial difference to your bottom line.<\/p>\n

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          1. Return to your financial goals <\/strong><\/li>\n<\/ol>\n

            Once you\u2019ve carried out your mid-year review, it\u2019s time to reassess your financial goals. These could be personal or professional, the important thing is, are they still attainable?<\/p>\n

            Armed with all of your current financial information, you\u2019ll be in the best position possible to review and amend your goals as necessary.<\/p>\n

            Seeing how close or far you are from reaching your goals informs you how to strategise going forward in order to reach your goals when you expect to.<\/p>\n

            As part of your financial review, also consider:<\/strong><\/h4>\n