How to Prepare for a Mid-Year Business Review: A Step-by-Step Guide

Kim Bernstein
1 day ago
3 min read

The middle of the year is the perfect time to hit pause, check your progress, and course-correct. A mid-year business review isn’t just a check-in—it’s a powerful tool to realign your financials, goals, and operations before Q4 sneaks up.

Done right, it gives you clarity, control, and confidence for the second half of the year.

Here’s how to run a truly impactful and strategic mid-year review, step by step.

Step 1: Pull Your Core Financial Reports

Start by gathering data. You need a clear view of what’s happened so far.

Pull these key reports:

Profit & Loss (P&L) – Year-to-date income vs. expenses
Balance Sheet – Snapshot of assets, liabilities, and equity
Cash Flow Statement – Inflows/outflows and liquidity trends
Budget vs. Actual Report – If you built a forecast

Pro tip: Pull reports in both calendar YTD and Q2-only formats for better trend spotting.

Step 2: Review Revenue & Profitability Trends

Look beyond top-line numbers—focus on profit drivers.

Ask:

Am I on track to hit my annual revenue goal?
Is gross profit where it should be? (Target: 30–60%)
Has my net profit improved over last year?
What offerings or services are most profitable?

Look for: Seasonal trends, growth spikes, or revenue plateaus.

Step 3: Evaluate Expenses & Cash Flow

This is your chance to plug leaks and free up capital.

Key questions:

Am I overspending in any category?
Are there tools/subscriptions I can cancel?
How’s my cash flow buffer? (3+ months is ideal)
Should I renegotiate vendor contracts or pricing?

Metrics to watch:

Software/tools as % of revenue
Owner draws vs. net profit
Payroll vs. revenue

Step 4: Revisit Annual Business Goals

Now’s the time to realign with your vision—or pivot with purpose.

Which Q1 goals did I meet or miss?
Have priorities shifted based on client demand, staffing, or market trends?
What goals need adjusting, dropping, or expanding?

Strategic goal reset: Choose 2–3 focus areas for the second half: profit, visibility, operations, etc.

Step 5: Refresh Your Tax Plan

Even if you filed in April, your tax planning work isn’t done.

Review:

Estimated payments (Next due: June 15 & Sept 15)
YTD tax deductions—have you maximized them?
Capital investments—are there purchases to plan before Q4?

Tax-saving tip: Mid-year is an ideal time to explore strategies like:

Accelerating expenses
Deferring income
Starting a retirement plan (SEP, Solo 401k, etc.)

Step 6: Audit Your Systems & Team Capacity

A great review isn’t just about money—it’s also about efficiency.

Questions to ask:

Is my current workflow scalable?
Are there bottlenecks in onboarding, invoicing, or delivery?
Could I automate or outsource any low-value tasks?

Ops tip: Document one recurring process this quarter (like invoicing or onboarding) to improve consistency and save time.

Step 7: Build Your Q3/Q4 Action Plan

This is where the review turns into action.

Build a 90–120 day plan that includes:

A single financial goal (e.g., increase monthly profit by 10%)
A marketing initiative or launch
One process improvement or system upgrade
One learning, team, or development goal

Ask: What do I need to let go of—and what do I need to lean into?

Get the Free Download:

Mid-Year Business Review Checklist: Want a printable version of this process with all the key questions and a space to jot your answers?

Final Thoughts: Reflect. Refocus. Relaunch.

A mid-year business review is about creating clarity, so you don’t just coast through Q3 and Q4, but move with intention.

Need help pulling reports, identifying red flags, or adjusting your financial goals? KB2 Bookkeeping & Tax offers Mid-Year Strategy Sessions to help you finish strong.

Let’s turn insight into action—and make this your strongest year yet.