By July, a business owner usually has a better feel for the year.
The first few months are often a mix of catching up, closing out the prior year, getting through tax season, and setting goals that may or may not still make sense by summer. Once the second quarter is over, there is enough information to step back and ask a practical question.
Are we where we thought we would be?
Start With Cash
Revenue matters, but cash is usually the better place to start. A company can look busy and still feel tight. Receivables may be taking too long to collect. Payroll may have increased. Debt payments, rent, insurance, software, materials, or professional fees may be higher than expected.
That does not always mean something is wrong. It just means the business should not wait until December to notice it.
This is also a good time to review estimated tax payments. If income is higher or lower than expected, those payments may need attention before the year gets away from you.
Look at What Is Coming Next
The second half of the year can bring decisions that affect more than one line on a report. Hiring, equipment purchases, bonuses, financing, real estate, ownership changes, or succession conversations can all create tax and cash flow issues.
Some of those decisions are easier to plan for in July than in November.
Make the Review Useful
A second-quarter review does not need to be complicated. It needs to be honest. What changed? What is working? What feels tighter than it should?
DSJ helps business owners look at the numbers while there is still time to use them.