Can you believe that a little more than half of 2021 is gone already? That means it’s a great time
to take stock of how your business has done for the first half of 2021 so that you can meet your
financial goals for the entire year. Your Favorite Orange County Bookkeeper is here to help!
On Track for Sales
Are you on track to make your 2021 revenue number? The first step is to check your 2021
budget numbers for total revenue. (Don’t have a budget? – Check with us; Team One
Accounting be delighted to discuss that service with you.)
Next, get your Income Statement for June 2021 Year-to-Date and check the revenue figure. Are
you on track with your budget, or are you halfway there revenue-wise, accounting for
seasonality? If so, pat yourself on the back! If not, what promotions can you put in place to
boost your growth for the rest of 2021?
On Track for Profit
Looking at the same Income Statement, check your net income figure. Are you on track with
what you planned? If so, great! If not, the reason is simple: it will be either lower sales than
expected or higher expenses than expected.
If your expenses are too high, you’ll need to drill down into each of your expense accounts,
including cost of goods sold, to see which ones are higher than expected. Were there some
unanticipated costs? Does your pricing need adjusting? Do you need more volume to cover your
costs? This is where Your Favorite Orange County Bookkeeper can help you with an analysis of
where your opportunities are to increase profit.
On Track for Cash
One more place to look is your cash balance. It can be uncomfortable when you are running short
of cash for your business. If your balance is lower than you’d like it to be, it could be because of
some of the factors mentioned above. It could also be because you just purchased a large asset
like a truck. If you need help with improving your cash flow, that’s another element of your
business that we can help you with.
This mid-year review can help you head off any small problems before they grow into big ones
throughout the rest of the year. And it can keep you on track so you can meet your 2021 business
goals. Your Favorite Orange County Bookkeeper at Team One Accounting is ready to assist in
your Mid-Year Review!