As we approach the halfway mark of the year, now is a great time to review the financial performance and state of your organization. Performing this midyear checkup can help ensure you are keeping accurate books, maintaining compliance, and identifying potential problems before they become challenges.
Here are a few key tasks to check off your list:
1. Review Bank & Credit Card Statements
This important task helps ensure your records align with your financial records. This also helps identify discrepancies early, which can prevent future errors and help detect fraud.
- Bank accounts reconciled
- Credit card accounts reconciled
2. Evaluate Financial Statements
Take time to review your income statement, balance sheet, and cash flow statement. Ask yourself these questions:
- Are you meeting your yearly targets?
- Are your expenses in line with your expectations?
Answering these questions can help you identify issues and allow you to make timely adjustments, so there are no surprises at the end of the year. Reviewing and evaluating your financial statements can also help determine if you are on track with your yearly financial goals.
- Review income statement for accuracy
- Review balance sheet for inconsistencies or outdated balances
- Including other receivables, other accruals, and loan balances
- Compare year-to-date (YTD) actuals to budget and note any variances
3. Assess Compliance With Tax & Regulatory Requirements
Midyear is a great time to review your payroll and estimated tax payments. If you have had a significant change in revenue, consider adjusting your estimated payments to help prepare for any upcoming audits or filings.
- Review estimated income tax payments
- Gather documentation for potential tax deductions or credits
- Confirm payroll tax filings are up to date
- Confirm all applicable federal and state payroll withholding forms are on file for each employee
- Make sure sales tax filings and payments are up to date
- Review 1099 vendor records for completeness and accuracy, including a current W-9 for each vendor
4. Review Accounts Receivable (A/R) & Accounts Payable (A/P)
Reviewing A/R can help improve cash flow, reduce bad debt risk, and strengthen customer relationships. Reviewing A/P can help identify any missed or duplicated payments, allow you to take advantage of vendor discounts, and help identify cost-saving opportunities.
- Review A/R aging report and follow up on overdue invoices
- Write off uncollectable receivables if necessary
- Reconcile vendor accounts and check for outstanding bills
- Review recurring payments for accuracy and necessity
5. Evaluate Business Expenses & Deductions
Reviewing expenses and deductions helps control costs, develop strategies for operational efficiency, improve budget accuracy, and ensure proper documentation is available at year-end.
- Audit payroll records for errors or misclassifications
- Confirm employee and contractor info is current
- Review depreciation schedules
- Update fixed asset register for new purchases/disposals
6. Check Internal Controls & Cybersecurity
Reviewing internal controls and cybersecurity can help reduce the risk of fraud or errors, strengthen data protections, ensure compliance (like HIPAA, PCI, or SOX), protect financial and customer data, encourage accountability, and maintain business continuity.
- Make sure accounting procedures are documented and updated
- Review that accounting and other software are up to date with the latest versions
- Review user access to accounting and other software
- Make sure employees are up to date on cybersecurity practices, including email phishing awareness
- Conduct or schedule an internal audit or review
For more details on the most common fraud types that SMBs face, and actions to help you avoid them, check out the 2025 Small to Midsize Business Report from Forvis Mazars.
7. Plan for Year-End Closing & Tax Preparation
Organizing your financial records in preparation for upcoming tax filings can make the year-end process more efficient and smooth.
- Review and update business goals for the second half of the year
- Identify opportunities for tax planning
- Begin preparation for year-end reporting and close procedures
- Schedule a meeting with your CPA or financial advisor
By focusing on key tasks and taking proactive steps, you can help set your organization up for a strong financial finish each year. Regular reviews help improve cash flow, enhance your tax strategy, and help support better decision making. Don’t wait until year-end to start and remember that “less mess equals less stress.” Contact a professional at Forvis Mazars today to learn more.