Nothing says summer like sparklers, popsicles, pool days, and reviewing your financials, am I right?
Yeah, that last one is my least favorite, too. And considering I’m a CPA, that’s saying something.
But as you know, owning a business isn’t all fancy coworking spaces and happy hour client meetings. Even when that patio bar is calling your name on a Friday afternoon, you sometimes have to buckle down and do those things that make your biz profitable so that you can keep it that way.
Case in point: I can remember back when I was 12 years old standing in the blistering hot sun fielding grounders from my dad in our driveway.
I didn’t want to be doing it. In fact, I thought it was a complete waste of time. I knew after that season that I was going to hang up my glove for good (see ya, softball), so practice seemed redundant.
When I pleaded my case to my dad (AKA whining for the 47th time), he looked at me and said something that I haven’t forgotten to this day: “It doesn’t matter because you’re doing it now.”
And back to fielding grounders we went.
Because he was right: Even when we don’t want to be doing something, if we are committed to it (even if just for 2 more months), we need to give it our best effort.
And your finances need your best effort. Even when the sunshine is calling your name.
But don’t worry: no time-intensive deep dive is necessary. In fact, there are only 4 questions to ask yourself to ensure you have your best year yet.
Am I on track to meet my goals?
If you don’t have an annual financial goal for your business, it’s time to get one in place. And once that’s set, you’ll want to project out your numbers to see if you’re on track to hit them.
- How much revenue do I expect to bring in for the remainder of the year
- What expenses will I incur?
- Is anything significantly different for the next 6 months than the prior 6 months?
If you find you’re coming up short, it’s time to reevaluate your strategy to see how you can increase revenue (Price increase? Better marketing?) or cut costs.
Am I making significantly more profit than last year?
If you are, it’s definitely time to book a call with your CPA to talk tax strategy. A few strategic moves now can help you save thousands on taxes, and you don’t want to leave money on the table.
Are my top 3 expenses bringing the most value to my business?
Value comes in either the form of more a) revenue or b) time freedom. And if your top 3 expenses aren’t giving you a good return on either of those, it’s time to get out your scissors and cut, cut, cut. You want to be investing most of your funds in areas that will move the needle forward for you, your business, and your personal life.
What do I need to prepare in order to be ready for Q3 and Q4?
Got a big launch coming up? Planning to hire your first team member?
Start saving for those investments or build it into your budget now so that those expenses are already a part of your monthly costs.
That way, you’ll ensure you can easily afford them when the time comes.
Ok, I’m officially off to the pool…wishing you a fun & prosperous summer!
- Brittney Suttle, CPA
THIS BLOG POST IS NOT A SUBSTITUTE FOR LEGAL ADVICE. EVERY SITUATION IS DIFFERENT & IS FACT-SPECIFIC. A proper legal analysis is necessary based on your location and contract. Consult an attorney in your home state for advice regarding your contract or specific legal situation.